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# Introduction to Service Fee Credit

BitFuFu's "Service Fee Credit" feature is essentially an output-based crypto-backed lending service. It provides users with a flexible, convenient, and low-interest method to pay service fees, ensuring your hashrate continues running during periods of capital turnover to maximize mining returns.

### **What is Service Fee Credit?**
The Service Fee Credit feature allows the system to automatically advance (lend) **3 days** worth of service fees whenever your plan's remaining service fee balance drops below 3 days. Once enabled, the mining output from that specific hashrate will be automatically directed to your **Collateral Account** to serve as backing for the loan.

**Activation Requirements:**
* The product must support service fee installments and have service fees pending payment.
* The size of a single hashrate order must be **≥ 2000T**.
* The remaining operational days of the hashrate plan must be **≥ 30 days**.
* The initial prepaid service fee duration at the time of ordering must be **≥ 10 days**.

### **Core Advantages & Operations**
* **Auto-Renewal to Prevent Downtime:** The system automatically detects balances and advances fees, completely eliminating the risk of hashrate suspension due to forgotten payments.
* **Flexible Toggle:** You can check the box to enable this feature when placing your order, or batch enable/disable it at any time during the hashrate's runtime via the **"Service Fee"** page.
* **Low Interest Rates:** Interest fees are calculated monthly (e.g., a monthly rate of **0.67%**). Interest accrued on the outstanding principal from the previous month is settled on the 4th of every month.

### **Loan-to-Value (LTV) Management & Risk Control**
LTV (Loan-to-Value) ratio is the core metric used to assess your borrowing risk:
LTV=Collateralized Coins×Real-time Coin PriceService Fee Installment Principal+Interest
The system manages risk across four critical LTV thresholds:
| **LTV Level** | **Status** | **Description** | **System Action / User Advice** |
| **< 50%** | **Withdrawable** | Collateral is highly sufficient. | You can withdraw the portion of collateralized coins that keeps the LTV below 50% at any time. |
| **< 70%** | **Normal Lending** | The system operates normally. | Auto-loans will successfully trigger to pay fees whenever the remaining service fee balance drops below 3 days. |
| **≥ 80%** | **Warning Line** | The system triggers an alert. | Strongly recommended to immediately top up collateral or repay the loan to lower your LTV. |
| **≥ 90%** | **Liquidation Line** | System executes immediate liquidation. | The system liquidates collateral to repay the loan and charges a 2% liquidation fee. Service Fee Installments for all hashrates will be turned off. |


### **How to Repay Loans and Withdraw Collateral?**

* **Active Repayment:** Go to **"Dashboard - Service Fee Credit"** and click **"Repay"** at any time. We support repayment using **FUFU Points**, **USDT transfers**, or direct deduction from your **collateral** (calculated at real-time coin prices). Repayments are applied to interest first, then to the principal.
![](https://storage.crisp.chat/users/helpdesk/website/-/6/d/a/5/6da5b5c64a4c4000/image_i176qg.png)
* **Withdrawing Collateral:** When **LTV < 50%**, you can withdraw excess collateral by clicking **"Adjust LTV"** (an on-chain network transaction fee of **0.0005 BTC** will be deducted). ![](https://storage.crisp.chat/users/helpdesk/website/-/6/d/a/5/6da5b5c64a4c4000/image_1qj0qmq.png)