When you use your margin line, Hapi charges interest on the balance actually used. The calculation is done daily and charged on a monthly basis.
Interest rates
Applied only to the margin amount used
Calculated daily and charged monthly
The rate depends on your average margin used during the billing cycle (16th to 15th)
Rates are variable and may change at any time based on market conditions and benchmark rates
Average margin used in the cycle | Annual rate |
Up to $5,000 | 8.25% |
$5,000 – $25,000 | 7.50% |
$25,000 – $100,000 | 6.25% |
$100,000 – $500,000 | 5.75% |
$500,000 – $1,000,000 | 5.60% |
More than $1,000,000 | 5.40% |
📌 Important: the rate you're charged depends on the tier your average margin used during the billing cycle falls into, and it applies to the entire balance, not by tiers (unlike income tax). If your average goes up or down and crosses into another tier, the new rate also applies to the earlier days of the cycle. That's why the interest you see on a given day may not exactly match what you would calculate yourself.
👉 Deposits, sales, or incoming funds in your account are first applied to reduce the margin balance, which may lower future interest charges. Keep in mind that if lowering your balance moves your average margin into a tier with a higher rate, that rate applies to the whole cycle and your total interest could be higher.
How is the charge calculated?
Interest = average margin for the cycle × annual rate × (days ÷ 360)
Interest accrues daily and, if not paid, may increase your margin balance.
Example
(For illustrative purposes only and does not reflect actual charges)
You have a borrowed balance of $10,000 for 30 days at an annual rate of 7.50%:
Calculation | Operation | Result |
Daily interest | $10,000 × 7.50% / 360 | $2.08 per day |
Monthly interest (30 days) | $10,000 × 7.50% × 30 / 360 | $62.50 for the month |
Tier-crossing example: if you use $24,000 for the first 15 days and $30,000 for the next 15 days, your average margin for the cycle is $27,000 (tier $25,000 – $100,000, rate 6.25%). Interest for the whole cycle is calculated at 6.25% for every day: $27,000 × 6.25% × 30 ÷ 360 = $140.63. The early days were showing 7.50% (your average was still below $25,000); when your average crossed into the next tier, they were adjusted.
It works the other way too: if your average drops below $25,000, the whole cycle is recalculated at 7.50%. For example, over 30 days, an average of $25,100 generates $130.73 in interest (6.25%), while an average of $24,900 generates $155.63 (7.50%): you use less margin, but pay more interest.
When and how is it charged?
Accrues daily based on your end-of-day balance. If you change tiers, the entire cycle is adjusted.
Charged once per month at the close of the billing cycle. The cycle generally runs from the 16th to the 15th of each month, and the charge is posted to your History around the 17th
Appears in your history as "Margin interest"
Deducted first from your available cash; if insufficient, it is added to your margin loan balance
👉 Interest starts accruing as soon as you use margin.
How is the margin balance repaid?
There is no fixed repayment schedule. As long as your assets remain at Hapi, you can keep a used margin balance without repaying it; however, interest will continue to be charged on that balance.
The margin loan is reduced automatically:
Deposits: applied first to the margin balance
Asset sales: used to repay the loan before generating available cash
Dividends or other income: also reduce the balance
⚠️ The main thing that could force an immediate payment is a margin call. In that case, you may need to deposit funds or sell assets to cover it, and your positions may be liquidated without prior notice. Hapi and its clearing firm may also increase margin requirements at any time, without prior notice. Keep in mind that interest added to your balance can also bring you closer to a margin call.
👉 Withdrawals may be restricted while a margin balance exists.
Where can you monitor margin usage and interest in the app?
History → details of the monthly charge
Buying power section → margin used, maintenance margin, and available margin buffer
Disclosures
Please review the account agreement and margin disclosures for more details:
Need help?
You can contact the support team from the app. The support team does not provide investment, tax, or legal advice.
Legal Disclaimer: Using margin involves risks and is not suitable for all investors. When trading on margin, you may lose more than your initial investment. Past performance does not guarantee future results. This content is for informational purposes only and does not constitute advice, a recommendation, or an offer to buy or sell securities. Margin use is subject to market conditions, regulatory requirements, and Hapi’s internal policies.