# BitFrog Margin Financing Introduction

## 1. About BitFrog Margin Financing

Traditional brokerages provide margin financing services (borrowing money to buy stocks).\
BitFrog offers a similar **margin financing** feature for crypto trading.

Users only need to provide **collateral**, and the platform will allocate additional funds at a certain multiple. The total funds will then be injected into the margin financing trading account, allowing users to trade directly on the BitFrog platform. The platform charges only daily interest.

***

## 2. Benefits of Using Margin Financing

### (1)Break Through Exchange Position Limits

Exchanges impose restrictions on the maximum contract position.

For example, on Binance ONT/USDT:

* At 20x leverage, the maximum position is **50,000 USDT**
* At 10x leverage, the maximum position is **125,000 USDT**

If a trader’s account only has **3,000 USDT in collateral**, it is impossible to open a **60,000 USDT** position.

With **BitFrog Margin Financing**, the trader can provide **3,000 USDT as collateral** and obtain **1x financing (an additional 3,000 USDT)**, raising total trading capital to **6,000 USDT**.\
Combined with the exchange’s **10x leverage**, this allows the trader to open a **60,000 USDT** position.

<figure><img src="https://2871554007-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FMxm0YwERTfVDK2vckXEg%2Fuploads%2FBXqZcEZMBOtgladoXxi2%2F7-115449.jpg?alt=media&#x26;token=971f2e6e-1d7d-43b0-bc55-4ba157272d3d" alt=""><figcaption></figcaption></figure>

***

### (2) Solve trader capital shortages

In a bull market, many traders lack sufficient funds and usually seek investors.\
In crypto, the typical profit-sharing ratio between traders and investors is **30% : 70%**.

**Case Comparison:**

* If initial capital is 1,000,000 USDT, and it doubles in 3 months (profit = 1,000,000 USDT):
  * Trader earns 300,000 USDT
  * Investor earns 700,000 USDT
* With BitFrog:\
  If you provide 500,000 USDT as **collateral**, you can obtain 500,000 USDT financing (1x).\
  Total = 1,000,000 USDT.\
  After doubling in 3 months, profit = 1,000,000 USDT.\
  The platform only charges interest (rate referenced to Binance BTC/USDT perpetual funding rate).

**Interest Example (rate 0.05%):**\
500,000 (financed funds) × 0.0005 (rate) × 3 (daily settlements) × 90 (days) = **67,500 USDT**

***

### (3) Avoid high perpetual contract funding rates

During “altcoin season” in bull markets, perpetual contract funding rates can soar, sometimes reaching **4.00%**, settled every 4 hours.

**Example Comparison:**

* Using 10,000 USDT to open a 3x leveraged perpetual long and holding for 1 day:
  * Even if you profit 10,000 USDT
  * You must pay 7,200 USDT in funding fees
  * Net profit = 2,800 USDT
* With BitFrog:\
  Provide 10,000 USDT as **collateral**, obtain 20,000 USDT financing (2x), total = 30,000 USDT.\
  By buying **spot** instead of holding a costly perpetual contract, you avoid high funding fees.

**Interest Example (rate 0.05%):**\
20,000 × 0.0005 × 3 = **30 USDT**

Net profit = 9,970 USDT, far higher than 2,800 USDT.