The Multi-Currency Margin mode in Unified Account allows users to use one account for spot trading, spot margin trading, USDT-M Perpetual futures trading and USDT-M options trading. Margin sharing is enabled across different trading types. Margin Balance will serve as the criteria for whether a position can be opened or need to be liquidated. Meanwhile, multiple assets can serve as margin in Unified Account, increasing capital efficiency. It is also possible to realize hedging and PnL offset across positions in different trading types. For example, suppose a user hold both BTC spot positions and BTC Perp short positions. When BTC price goes up, the profit in spot and loss in futures can be offset. Compared with the Classic Account mode, the Multi-Currency mode in Unified Account enables users to conduct more complicated strategic trading via diversified portfolios. This article delineates the margin-related rules of the Multi-Currency Margin mode in Unified Account.

I. At the Dimension of Coin

II. At the Dimension of Account

III. Margin Rules

1. Discount Rate

Spot assets in your account are given tiered respective discount rate based on their liquidity to calculate their USD value.
Spot index price and tiered discount rate will be used to calculate the USD value of these margin assets. For more about the discount rate, please refer to: Discount Rate

Calculation Example (please note that all parameters below are for example only. Please refer to the above link for the actual parameters):

Suppose that the tiered discount rate of BTC are as follows:

When the equity of your BTC assets fall in the range of $0-2,000,000, the USD value of BTC as margin will equal to its index price multiplied by 1, the margin adjustment factor with no discount; however, when your BTC assets exceed $2,000,000, the margin value of the portion that falls in the range of $2,000,000- $5,000,000 will be multiplied by 0.95, suggesting a 5% discount; when your BTC assets surpass $5,000,000, the portion that is above $5,000,000 will be given a margin adjustment factor of 0.5 in margin calculation, a 50% discount.

Likewise, suppose that the tiered discount rate of GT are as follows:

User A holds 30 BTC and 500,000 GT and has no loans.
Suppose that 1 BTC = 100,000 USD and 1 GT = 10 USD.
The USD value of BTC that can serve as margin is 2,000,000 x1 + 1000000 x 0.95 = 2,950,000 USD;
The USD value of GT that can serve as margin is 1000,000 x 0.95 + 1000,000 x 0.9 + 2000,000 x 0.8 + 1000,000 x 0 = 3,450,000 USD.

2. Haircut Loss

Haircut Loss refers to the decrease of account equity due to different discount rate between the coin transferring out and the coin transferring in after an order is filled.
Haircut loss of a single transaction = Max (Est. Margin USD Value of the Coin Transferring Out - Est. Margin USD value of the Coin Transferring In, 0)
Total Haircut Loss = ∑ (Every Single Haircut Loss)

When there are multiple open orders in both bids and asks, the est. USD value of assets as margin will be added up. The to-be-filled order amount of former open orders will also be counted as part of your assets to determine which tier the assets you are about to receive will be in, and you will find the respective discount rate to calculate the haircut loss.

Example

Suppose that the tiered discount rate of GT are as follows:

Suppose that the tiered discount rate of USDT are as follows:

Suppose now 1GT = 10 USD, 1 USDT = 1USD.
User A is holding 90,000 GT. The bid orders and respective haircut losses in the GT/USDT market are listed as follows:

Total Haircut Loss = 4,000 + 8,000 = 12,000 USD

IV. Margin Requirements for Borrowing Coins

1. Coin Liabilities and Negative Balance

The amount of margin required is based on your coin liabilities. Liabilities of a Coin = Borrowed + ABS(Min(Spot Available + Futures Unrealized PnL + Options Value, 0))

In this formula:
Futures Unrealized PnL = sum (unrealized PnL of all futures positions)
Unrealized PnL of a Futures Position = Position Size × (Futures Mark Price - Average Entry Price)
Options Value = sum (Options Position Size × Options Mark Price). The position value of a short option position is negative while that of an long position is positive.
Futures unrealized PnL and options value are only applicable to USDT.
Spot Available = Balance - Frozen. If balance is negative, Spot Available is also negative.

The scenarios that might lead to negative balance are as follows:

1. Payment of the trading fee when a futures order is filled (only applicable to USDT)
2. When the realized PnL of a futures position is negative after closing out the position ((only applicable to USDT)
3. Payment of the trading fee when an options order is filled and the premium of buy orders (only applicable to USDT)
4. Payment of the trading fee and the payoff for short option positions after delivery and settlement at expiration dates (only applicable to USDT)
5. Interest payment each hour (applicable to all coins with loans)
   When the above-mentioned scenarios occur, regardless of your account available balance, the system will perform the action to transfer out funds, and there’s a chance of negative balance.

Our platform views negative balance as a type of liabilities, the same as the loan borrowed, and it is included in the calculation of initial and maintenance margin requirements for borrowing coins.

2. Maintenance Margin for Borrowing Coins

Our platform provides a tiered margin calculation mechanism for borrowing coins supported in Unified Account based on their liquidity. For the real-time parameters, please go to: Tiered Margin Calculation

For the convenience of making an example, we assume that the tiered margin requirements for borrowing BTC are as follows:

As shown in the table above, we have set different maintenance margin ratios for different loan tiers. The higher the loan tier, the higher the maintenance margin ratio requirement. Because larger loan sizes are subjected to higher liquidity risks in liquidation.

Take the above tiered margin calculation table as an example:
Suppose user A has a loan of 30 BTC and the current spot index price of BTC is 100,000 USD. The maintenance margin required for this loan = 2,000,000 × 2% + 1,000,000 × 4% = 80,000 USD.

3. Leverage and Initial Margin Required for Borrowing Coins

At the beginning of the service of Unified Account, our platform allows users to choose from 1x, 2x, and 3x as their leverage (In Unified Account, Leverage = Max Liabilities / Account Net Assets), and the corresponding initial margin ratios are 100%, 50%, and 33% respectively for each leverage chosen. This leverage is applied to all coins that can be borrowed. Now, to offer higher leverage for users to explore more trading possibilities, we retain this configuration and offer a new function of leverage adjustment for a single coin. Users can adjust the leverage for borrowing within the leverage limit of one coin. The scale is (0, Maximum Leverage] and the adjustment precision is 0.01. The initial margin ratio required for borrowing this coin = 1 / Leverage. The higher the leverage, the lower the initial margin requirement, the more users can borrow, the higher the risks, and the higher the potential return.

Take the above tiered margin calculation table as an example:

When the USD value of your BTC loan falls in the range of 0-2,000,000, you can select a leverage from (0-10]. For example, if you select 9, the initial margin ratio required for borrowing BTC is 1/9.
When the USD value of your BTC loan falls in the range of 2,000,000-5,000,000, you can select a leverage from (0-5]. For example, if you select 3.25, the initial margin ratio required for borrowing BTC is 1/3.25.
When the USD value of your BTC loan is over 5,000,000, the maximum leverage you can select is 0x, which means you have reached the loan limit and you cannot borrow more.

Besides, if your App has not been updated to the 6.36.0 version, you cannot select a leverage for a single coin. The previous set leverage for Unified Account (the 1x, 2x, or 3x selected before) will still be effective for those coins that you have not customized a specific leverage. If you have customized the leverage for some coins on the web version or via the openAPI interface, the initial margin ratio required for borrowing these coins = 1 / custom leverage. For those coins with no custom leverage, the initial margin requirement will be calculated based on the previous leverage set in Unified Account. For a more complete experience of the Unified Account service and higher capital efficiency, please make timely updates to your App.

4. Leverage and Loan Limit

When you select a leverage, the corresponding loan limit is determined. The lower the leverage, the higher the loan limit.

Take the above tiered margin calculation table as an example:

When you select a leverage of 10x, your loan limit is 2,000,000;
when you select a leverage of 9x (not the 5x in the next tier), your loan limit is still 2,000,000;
when you select a leverage of 5x or lower, your loan limit is elevated to 5,000,000;

The leverage of 0x is the maximum leverage of the loan tier of over 5,000,000. The loan size of 5,000,000 is the max loan limit set by the platform. Once you have reached this limit, you cannot no longer borrow any funds.
If you want to have higher loan limit, you can lower your leverage to go to your targeted loan tier.

For example: If you select a leverage of 10x (the corresponding loan limit is $2,000,000) and borrowed funds worth $1,500,000. Due to the increase in the coin price, the loan value expands to $2,200,000. In this case, even if you have sufficient margin balance in your account, as you have reached the loan limit of the current tier, $2,000,000, you cannot borrow more funds. If you want to raise the loan limit, you need to lower the leverage to 5x or lower, after which your loan limit will be $5,000,000.

The overall borrowing limit includes the loan cap mechanism for different VIP tiers. For more details, please go to: Loan Cap

In conclusion, the actual borrowable amount = Min (Account Available Margin / Initial Margin Ratio for Borrowing Coins / Coin Index Price, (Coin Maximum Loan at the Current VIP Tier - Coin Liabilities) / Coin Index Price, (Coin Borrowing Limit Based on the Current Leverage - Coin Liabilities) / Coin Index Price, Pool Available)

Besides,
1.For the interest calculation rules of borrowing coins, please refer to: Borrowing Rules
2.The content of this section also applies to the initial margin and maintenance margin requirements for borrowing coins in the Portfolio Margin mode of Unified Account.

V. Margin Requirements for Futures Trading in Unified Account

A tiered risk limit mechanism is configured based on the liquidity of different futures markets. For details, see [Futures Rules]-[Leverage and Margin] ; for the specific risk limit rules, see Risk Limit Explanation

1. Leverage and Risk Limit

The margin requirements for futures positions in the Unified Account are the same as those in a classic futures account. For each futures market, users can select a risk limit tier based on their current position size and desired exposure (Note: Users can select only tiers where the limit exceeds their current position size). Each tier defines the following: the max position size, the required maintenance margin ratio (MMR), and the max available leverage in this futures market. Users may choose their preferred leverage within the maximum allowed by the selected tier, based on their risk appetite. They may also choose leverage according to their current position size and open orders to increase position, but the risk limit corresponding to the selected leverage must be no lower than this size. The selected leverage determines the risk limit. The lower the leverage, the greater the risk limit. The higher the leverage, the lower the initial margin requirements (Initial Margin Ratio (IMR) = 1 / Leverage), the greater the max position size, the greater the risks and potential returns.

Take the risk limit table above as an example:
If the position size is 0, the user can select any leverage between 1x and 125x. At 90x, the max position value is 100,000 USDT; at 30x, it’s 1,000,000 USDT; at 2x, it’s 5,000,000 USDT. The max position value cannot exceed the upper limit of the chosen tier.
If the user has existing positions or open orders, the available leverage options may be restricted. For instance, if the total value of positions and open orders is 10,000 USDT, the user may still select 1-125x leverage, but the maximum new order value is 10,000 USDT. To place larger orders, the user must choose lower leverage. For example, in this case, if the user selects a leverage of 80x, the max position value will be automatically adjusted to 90,000 USDT for the BTCUSDT market.

2. Futures Initial Margin

As with the classic futures account, the Unified Account allows users to select leverage from 1x to 125x (The specific range depends on the risk limit parameters of the futures market). Leverage can be adjusted with a precision of 0.01. The calculation formula is: IMR = 1 / Selected Leverage.

3. Futures Maintenance Margin

When trading futures, the required maintenance margin is calculated using a tiered structure. Each risk limit range corresponds to a specific MMR. The higher the risk limit tier, the higher the associated MMR–because larger position sizes carry greater liquidity risk in the event of forced liquidation.

Calculation Example:
Assume a user opens a position worth 150,000 USDT. The required maintenance margin would be: 20,000 × 0.40% + (50,000 - 20,000) × 0.45% + (100,000 - 50,000) × 0.50% + (150,000 - 100,000) × 0.70% = 815 USDT

4. Margin Calculation in Different Modes

1）One-Way Mode

In One-Way Mode, the calculation rules of initial margin and maintenance margin requirements are as follows:
Position Maintenance Margin = abs (Position Size) × Mark Price × MMR at the Selected Risk Limit Tier + Est. Liquidation Fee
The position maintenance margin is calculated using the same tiered structure as that mentioned above.
Position Initial Margin = abs (Position Size) × Mark Price × 1 / Leverage + Est. Liquidation Fee
Initial Margin for Open Orders= abs (Order Size) × Order Price × 1 / Leverage + Est. Liquidation Fee + Est. Trading Fee
There’s no initial margin requirement for orders to close or reduce positions. The estimated trading fee is 0.075%, which is applicable as well in Hedge Mode.

2）Hedge Mode

In Hedge Mode, the calculation rules of initial margin and maintenance margin requirements are as follows:
Maintenance Margin Required in Hedge Mode = max(Maintenance Margin of Long Positions, Maintenance Margin of Short Positions) + Est. Liquidation Fee for the Hedging Positions
The maintenance margin for long and short positions is calculated using the same tiered structure as in the One-Way Mode. The MMR is determined based on the risk limit tier.
Initial Margin Required in Hedge Mode = max(Initial Margin of Long Positions, Initial Margin of Short Positions) + Est. Liquidation Fee for the Hedging Positions
The calculation of the initial margin of long and short positions is the same as that in the One-Way Mode. The IMR is determined based on the leverage selected by the user.

Initial Margin for Open Orders = abs (Order Amount) × Order Price × 1 / Leverage + Est. Liquidation Fee + Est. Trading Fee
There’s no initial margin requirement for orders to close or reduce positions.
As only USDT-M Perpetual Futures is supported in Unified Account, the initial and maintenance margin requirements for the futures part will be calculated in USDT.
Maintenance Margin in USDT for futures positions in Unified Account = ∑(maintenance margin of all futures positions)
Initial Margin in USDT for futures positions in Unified Account = ∑(initial margin required for all futures positions and open orders)

VI. Margin Requirements for Options Trading

The margin requirements for options trading in Unified Account are basically the same as that in classic options account. Maintenance margin is only required for short positions, while initial margin is required for both long and short positions.

1. Maintenance Margin Requirements

Maintenance Margin for Short Puts = (Maintenance Margin Factor × max(Mark Price, Spot Index) + Mark Price) x abs (Position Size)
Maintenance Margin for Short Calls = (Maintenance Margin Factor × Spot Index) + Mark Price) x abs (Position Size)

2. Initial Margin Requirements

Initial Margin for Short Puts = ( max (Initial Margin Min Factor × Spot Index × (1 + Mark Price / Spot Index), Initial Margin Max Factor × Spot Index - OTM Moneyness) + Mark Price) × abs (Position Size)
Initial Margin for Short Calls = ( max (Initial Margin Min Factor × Spot Index, Initial Margin Max Factor × Spot Index - OTM Moneyness) + Mark Price) × abs (Position Size)
OTM Moneyness of Call Options = max (0, Strike Price - Spot Index)
OTM Moneyness of Put Options = max (0, Spot Index - Strike Price)
Initial Margin for Options Buy Orders = (Premium + Trading Fee) × (1 + Initial Margin Ratio for Borrowing USDT)
There’s no initial margin requirement for the premium part for options buy orders to reduce positions.
Initial Margin for Options Sell Orders = max (Initial Margin for the Short Position of the Sell Order - Premium, 0) = Trading Fee

There’s no initial margin requirement for options sell orders to reduce positions.

The risk control parameters for margin calculation across different options markets are as follows:

As the settlement currency of Options trading is USDT in Unified Account, the initial and maintenance margin requirements will be calculated in USDT.

Maintenance Margin in USDT for options positions in Unified Account = ∑(maintenance margin of all short options positions)
Initial Margin in USDT for options positions in Unified Account = ∑(initial margin required for all options positions and open orders)

VII. Calculation Example

Suppose that User A does not have any open orders in futures markets and holds the following positions:

Suppose that User A selected the following risk limit tier:

Suppose that the leverage set by the user for this futures market is 10x. In this case, the initial margin and maintenance margin required for this futures position are (trading fee neglected):
Initial Margin = 1 × 60000 × 1 / 10 = 6000 USDT
Maintenance Margin =20000 × 0.4% + (50000 - 20000) × 0.45% + (60000 - 50000) × 0.5% = 265 USDT

Suppose that user A does not have any open orders in options markets and holds the following positions:

Suppose that the current spot index price of BTC is 60,000 USDT. The initial margin and maintenance margin required for this options position are (trading fee neglected):
Initial Margin = (max (0.1 × 60000, 0.15 × 60000 - 10000) + 1800 ) × 1 = 7800 USDT
Maintenance Margin = (0.075 × 60000 + 1800 ) × 1 = 6300 USDT

Suppose that user A has no open orders in spot markets, borrowed 2 ETH and sold them. The ETH loan is not repaid. Suppose the current spot index price of ETH is 2,500 USDT. User A set a leverage of 5x for borrowing ETH and a leverage of 10x for borrowing USDT. Suppose the tiered margin calculation rules for borrowing USDT and ETH are listed in the table below:

Suppose that user A holds 2 BTC and has a negative balance of -10,000 USDT. The price of USDT is 1 USD.
Given the above conditions, the balance of different coins in the account are as follows:

Suppose that the tiered discount rate of BTC are as follows:：

Based on the above conditions, we can conduct the following calculation at the account dimension:

Account Margin Balance = Equity of USDT + Equity of BTC × Tiered discount rate + Equity of ETH = -1800 + ( 100000 × 0.9 + 20000 × 0.8 ) + （-5000） = 99200 USD
Account Initial Margin = Initial Margin of USDT + Initial Margin of BTC + Initial Margin of ETH = 13980 + 0 + 1000 = 14980 USD
Account Maintenance Margin = Maintenance Margin of USDT + Maintenance Margin of BTC + Maintenance Margin of ETH = 6573 + 0 + 160 = 6733 USD
Account Initial Margin Ratio = Account Margin Balance / Account Initial Margin = 99200 / 14980 = 662.61%
Account Maintenance Margin Ratio = Account Margin Balance / Account Maintenance Margin = 99200 / 6733 = 1547.6%
Account Available Margin = Account Margin Balance - Account Initial Margin = 99200 - 14980 = 84220 USD

Account Initial Margin Ratio serves as the threshold for the risk control measure of Auto-Cancel; Account Maintenance Margin Ratio serves as the threshold for the risk control measure of Liquidation. For more details, please refer to: Multi-Currency Margin Mode - Risk Control Mechanism

Gate reserves the right to adjust all risk control parameters involved in this article (including the discount rate, the tiered margin ratios, futures risk limit, etc.) and our risk control team has the right to adjust these parameters based on market conditions. The announcements and real-time parameters shall prevail.

Gate reserves the final right to interpret this article.