What is OTC fund-raising? How does OTC fund-raising work?

Over-the-counter fund-raising refers to the public lending of money to customers by stock fund-raising companies other than margin financing and securities lending. Generally speaking, the fund-raising company will charge certain interest and management fees to customers according to the net amount of funds and the fund-raising period. At the same time, customers will also give shares and deposits to the fund-raising company as a guarantee, and at the same time set up a liquidation line to protect the interests of the fund-raising company. The basic business model of OTC fund-raising OTC fund-raising is essentially a fund lending relationship. Fund-matching companies lend their own funds and funds raised from the market to investors through the platform to realize leveraged trading of investors. Fund-raising companies provide securities accounts and funds and charge interest. In order to ensure the safety of the lent funds, the fund-raising company monitors the funds in the customer's account and sets up a clearing line and an early warning line. The fund-raising company will inform customers to lighten their positions or make up their own deposits. Once the client's funds touch the liquidation line, the fund-raising company has the right to liquidate the position immediately. The leverage ratio of off-exchange fund-raising is extremely high, often reaching more than 10, which is much higher than the leverage ratio of on-exchange fund-raising 1 0. The annualized interest rate is generally between 20% and 33%, which is also much higher than the 6% to 9% of the on-site fund allocation. Over-the-counter fund-raising companies introduce the fund-raising business to ordinary investors through telephone marketing, SMS, instant messaging software, mass mail, advertisements on financial websites and media. In order to quickly attract people's attention and develop business, there are all kinds of publicity for off-site fund-raising, such as "low threshold, 10 times leverage, fund-raising will arrive every second", "sending interest-free red envelopes after recharging" and so on. Illegal off-exchange fund-raising has revived. The so-called OTC fund-raising platform is not qualified to engage in securities business, some are suspected of engaging in illegal securities business activities, and some even engage in illegal and criminal activities such as fraud by means of "virtual disk".