Bybit Launches Lite Loan: 30 Days, No Liquidations, 0.5% Fee

Bybit launched a crypto-backed loan product on Monday that guarantees no liquidations for the first 30 days. The product, called Lite Loan, lets users borrow Tether (USDT) or USD Coin (USDC) against Bitcoin (BTC) or Ether (ETH) collateral.

The no-liquidation provision holds for the full initial 30-day term regardless of market conditions, subject to the product's applicable terms. After that window closes, borrowers get a further 30-day grace period. In practice, that means up to 60 days from the start of the loan to repay.

The fee structure is simple and disclosed upfront. Lite Loan carries a one-time prepaid service fee, normally set at 1%. Eligible orders initiated between Nov. 9 and Dec. 8 pay half that rate, 0.5%.

Repayment rules are fixed. Borrowers can choose manual or automatic repayment, but they must repay in the asset they borrowed. Take out USDT, settle in USDT.

How does this compare with Coinbase's offering?

Bybit is not the first mover here. In the U.S., Coinbase introduced a fixed-rate, fixed-term crypto-backed borrowing option on Base on Sept. 22, available to verified customers outside New York.

The Coinbase product differs in mechanics. Borrowers set their borrowing costs and repayment dates in advance, giving them certainty on both dimensions before committing collateral.

Bybit's pitch runs in a different direction. It centers on downside protection — the promise that a market drawdown cannot trigger liquidation during the initial term — rather than on rate certainty.

What does this change for borrowers?

The practical shift is risk transfer during the first month of the loan. On conventional crypto lending platforms, a sharp drop in BTC or ETH collateral value can trigger liquidation within hours. Under Lite Loan's terms, that outcome is off the table for the initial 30-day period, whatever the market does.

That protection carries a cost and a boundary. The 1% standard prepaid service fee prices the feature, and the promotion cuts it to 0.5% for a limited window. Once the initial term and the 30-day grace period expire, the ordinary product terms govern the position.

The repayment-in-kind requirement also shapes the calculus. Borrowers who take USDT cannot settle the debt in ETH or BTC, so they need a plan for acquiring the borrowed asset by the due date.

A competitive market for collateralized credit

The launch signals where exchange competition is heading. Major venues are building out retail credit products on top of existing spot infrastructure, differentiating on liquidation policy, fee transparency and term flexibility rather than on leverage alone.

For Bybit, Lite Loan extends a lending line-up aimed at holders who want liquidity without selling. For Coinbase, the Base-based product folds borrowing into its broader app chain strategy for U.S. customers.

The promotional window closes on Dec. 8. After that, new Lite Loan orders revert to the standard 1% prepaid service fee.