CEX.IO Prime Credit Line
Collateralized Credit Lines for Institutions
A crypto credit line on CEX.IO Prime lets your firm trade above the funds on its account and repay later. Prime enables the line for each client, and one exposure limit covers the main account and every sub-account.
One limit
Main account and sub-accounts
FIX 4.4
Plus REST and WebSocket
24/7
Prime Liquidity operating hours
What Is a Crypto Credit Line?
A crypto credit line is a standing limit that lets a business draw funds, repay them and draw again. The limit stays open, and the debt rises and falls as the business trades.
Collateral secures a credit line. The lender sets the limit against the assets the client pledges, so the size of the line follows the value and quality of that collateral.
Institutions use credit lines because pre-funding every trade ties up capital. A desk that quotes clients all day often needs to buy before incoming funds arrive. A credit line covers that gap, and the desk repays once the transfer lands.
Credit Line and Collateralized Loan Compared
Credit line
A credit line is a revolving limit on a trading account. You trade above the funds you hold, and the debt clears when you repay. The limit then opens up again for the next trade.
Trading firms use it to skip pre-funding and to cover the gap between a trade and the transfer that pays for it. CEX.IO Prime offers this model on Prime Liquidity accounts.
Collateralized loan
A collateralized loan is a fixed amount a lender pays out once against pledged assets. The borrower repays on agreed terms and gets the collateral back after repayment.
Businesses use it for working capital. The Prime Liquidity documentation states that Prime Liquidity does not provide loans or leverage trading.
How Prime Credit Lines Work
Prime sets up every credit line individually. The cycle runs from your first request to a limit that frees up each time you repay.
Request
Tell your Prime account manager why you need the line and how your trading flow looks.
Review
Prime runs due diligence and a risk review of your firm before it offers terms.
Agreement
You and Prime sign an agreement that sets your limit and its terms.
Limit goes live
Prime enables the credit line on your account. One exposure limit covers the main account and its sub-accounts.
Trade
You place orders above the funds you hold. Prime Liquidity routes each order to its connected liquidity providers.
Repay and reuse
You deposit funds or sell holdings to clear the debt. Total debt falls, and the room under your limit opens up again.
Structure a Credit Line Around Your Flow
Tell us how your firm trades, which accounts need the line and how you plan to repay. Your account manager takes the request from there.
FAQ
What is a crypto credit line?
A crypto credit line is a standing limit that lets a business trade above the funds it holds and repay later. On CEX.IO Prime, the line sits on your Prime Liquidity account, and one exposure limit covers the main account and its sub-accounts.
How does a credit line differ from a crypto loan?
How does a credit line differ from a crypto loan?
A loan pays out a fixed amount once, and the borrower repays it on agreed terms. A credit line stays open. The debt grows as you use it, and the limit frees up as you repay.
Does CEX.IO Prime offer credit lines to institutions?
Yes. Prime Liquidity supports a credit line, and Prime enables it for each client individually. Ask your Prime account manager to start the request.
Who can apply for a Prime credit line?
Prime Liquidity serves companies, institutions and high-volume traders, such as brokers, banks and payment systems. Prime decides eligibility and the size of the limit for each client.
How do I check my limit and debt?
Call the Account Status V3 method over REST or WebSocket with an API key that has Read permission. When your credit line is active, the response includes the base currency, the exposure limit, the total debt and the funds on hold.
What is an overdraft limit on Prime?
An overdraft limit is an amount Prime sets for a specific currency. It applies to all your accounts in that currency, and Account Status V3 returns it with your credit line data.
Does Prime Liquidity provide loans or leverage trading?
No. The Prime Liquidity documentation states that it does not provide leverage trading or loans. The credit line covers trading on your Prime Liquidity account.
Does a credit line have tax consequences?
Tax treatment depends on your jurisdiction and your firm's structure. CEX.IO Prime does not give tax advice, so check with your tax adviser.