It's a mortgage, the XMR is collateral. When you pay again the loan the XMR you've is launched. Binance retains a margin for volatility; it isn't often double, however this varies relying on the coin borrowed and what coin you are using as collateral.
Binance loans are used should you want momentary money liquidity without eager to sell your crypto; you'll be able to borrow in BUSD for instance, money out real world cash, and everytime you pay it off you get your collateral again. That is great when the market is shifting upwards and you do not need to lose out on your coin progress. You can even borrow other cash (resembling BTC, BNB and so on) to take part in specific actions, brief (promote and rebuy cheaper) and so forth.
What you could take note of is the value of your collateral vs what you've got borrowed. When you borrow $1000 BUSD and put down $1500 of XMR for instance, if the market value of XMR drops, you'll get notifications from Binance to prime up on collateral or repay part of the loan to make sure you aren't getting liquidated (if the worth of your collateral goes under the quantity you borrowed, your cash will get auto-sold to cover the loan).
There is an element of danger however should you handle it correctly it can be a really useful gizmo.
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