Repayment and debt management

This article explains how to repay borrowed EURCV, what happens if the execution of a liquidation order does not fully cover what you owe, and what restrictions may apply while debt remains unpaid.

Direct repayment lets you repay part or all of the borrowed EURCV and accrued daily borrowing fees without selling the stock, ETF or ETC.

You can repay using EURCV or an eligible fiat wallet, where available in the app.

The app will show the payment methods available to you and whether the selected wallet has enough balance.

If the sale proceeds from a Sell Order upon closing your margin position or from a Liquidation Order are not enough to cover the borrowed EURCV, accrued daily borrowing fees and applicable fees, you will have an outstanding debt to Bitpanda GmbH. This can happen during sharp market moves, overnight gaps, market reopenings, low liquidity or when daily fees have accrued over time with no price appreciation in the asset pledged as collateral.

The closed or liquidated position may remain visible as a debt record with zero remaining asset amount.

The debt is denominated in EURCV.

Each position closed or liquidated that creates debt is tracked separately and has its own repayment deadline.

You remain responsible for repaying the outstanding amount in full, in a timely manner.

If you have debt from outstanding borrowed funds that you used to enter into a margin trade, the app will show it on relevant screens such as Home or Portfolio. You can review the debt details to see:

If you have several debt records from borrowed funds, they are listed separately rather than combined into one position and must be managed individually.

• 1
  Open the debt repayment flow from the Home or Portfolio debt prompt.
• 2
  Select the debt record you want to repay.
• 3
  Review the amount and breakdown.
• 4
  Choose an eligible payment method.
• 5
  Confirm the repayment.

Debt is denominated in EURCV, and repayment is therefore required in EURCV. If you choose fiat, the fiat amount is converted to EURCV in the background. If you choose EURCV, EURCV is transferred directly for repayment.

Bitpanda gives every user with an outstanding debt a grace period of 1 month to repay the debt. Every debt record must be repaid within 31 days. The app shows the due date or time remaining for each debt record. You can repay directly through the app during the self-service repayment period shown there. If you have due debt from more borrowing transactions from a margin trade, the due date can expire before another. Do not wait until the last moment: once the deadline is reached, Bitpanda will realize additional collateral (e-money and crypto assets) and afterwards take further action and ask a debt collection agency to collect the debt.

While debt remains unpaid, Bitpanda may restrict actions that would increase risk or reduce available collateral.

Restrictions are lifted only once the relevant debt is fully repaid or otherwise settled and your account passes the applicable checks.

If you do not repay by the due date shown in the app, Bitpanda will realize additional collateral that secures Bitpanda’s repayment claim.

When opening a margin trade , you pledge the stock, ETF or ETC bought as collateral to secure Bitpanda’s repayment claim. In addition, you pledge additional assets such as e-money and crypto assets in your Bitpanda account as additional collateral. If you do not repay debt by the due date, Bitpanda may use eligible additional collateral to reduce or repay the outstanding debt. Eligible assets will be sold and/or converted to EURCV to repay the outstanding debt.

If pledged additional assets such as e-money and crypto assets are not enough to cover the full amount you owe to Bitpanda, any remaining debt may be referred to a third-party debt collection agency. After handover, you will need to follow the instructions provided by the debt collection agency. Additional costs may be incurred.

When you open a margin position in a Stock, ETF or ETC, the asset bought as part of that position is used as collateral to secure Bitpanda GmbH’s repayment claim for borrowed EURCV and daily fees.

In addition, some eligible assets in your Bitpanda account are used as additional collateral. Additional collateral affects your account in two ways:

First, it can reduce your available amount to borrow or withdraw. This is why your available balance for withdrawals or new margin trades may be lower than your total portfolio balance while you have open margin positions.

Second, if the stock/ETF/ETC that forms part of a margin position is sold and the sale proceeds are not enough to cover the borrowed EURCV, accrued daily fees and applicable fees, you will have an outstanding debt to Bitpanda. You will be shown the debt in your Portfolio and you will have 31 days to repay it yourself. During this period, some actions may be restricted, such as opening new margin positions, adding to existing margin positions, or withdrawing assets.

If you do not repay the debt by the deadline shown in the app, Bitpanda may use eligible assets in your account to recover the outstanding amount. This is called cross-collateral liquidation or asset collection.

You remain responsible for repaying any outstanding amount until it is fully settled. The best way to avoid cross-collateral liquidation is to repay borrowed funds before the deadline shown in the app.

Direct repayment for borrowed funds appears as a borrowed funds repayment. Outstanding debt after execution of the liquidation order and partial repayment appears as a debt or negative equity repayment. The transaction details can show the amount repaid, payment method, remaining borrowed funds and relevant debt breakdown.