Introduction
In multi-currency cross-margin mode, traders can access a diverse range of financial instruments—including spot trading, margin trading, futures, perpetual contracts, and options—using a unified pool of assets denominated in multiple currencies. The system calculates margin requirements based on the USD-equivalent value of deposited assets, enabling flexible position management across different product types.
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Auto-Borrow Mechanism
When activated, this feature allows:
- Execution of trades even with insufficient available balance in a specific currency, provided adequate USD-equivalent equity exists
- Automatic liability generation when negative equity occurs due to overselling or derivative losses
- Dynamic interest calculations on incurred liabilities
Core Concepts & Calculations
Currency-Level Metrics
| Metric | Definition | Calculation Method |
|---|---|---|
| Equity | Total currency value including unrealized PnL | Balance + Floating PnL + Options Value |
| Frozen Equity | Assets reserved for active orders | Sell orders + Option buys + Isolated margin fees |
| Available Equity | Usable funds after reserves | Max(0, Equity - Frozen Equity) |
| Liability | Debt obligations from negative equity | Abs(Min[0, Equity]) + Isolated position debt |
Practical Example
Portfolio Composition:
- BTC: 2 units @ $100,000
- SOL: 6,000 units @ $200
- USDT: 110,000 units @ $1
Perpetual Position:
- 0.5 BTC long @ 80,000
- Current mark price: $100,000
- Floating PnL: +$10,000
| Currency | Equity | Frozen Equity | Potential Borrow |
|---|---|---|---|
| BTC | 2 | 4 | 2 |
| SOL | 6,000 | 0 | 0 |
| USDT | 110,000 | 0 | 0 |
Trading Protocols
Auto-Borrow Mode Features
- Enables execution beyond available balance
- Triggers potential borrowing when equity < frozen requirements
- Maintains positions if USD-adjusted equity covers maintenance margin
Non-Borrow Mode Restrictions
- Requires sufficient available balance per currency
- Prevents negative equity generation
- Limits order placement to existing funds
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Risk Management Framework
Order Cancellation Triggers
- Cross-Margin Insufficiency: Cancels futures/options orders when:
Adjusted Equity < Total Maintenance Margin + Order Fees - Currency-Specific Shortfalls: Cancels isolated orders when:
Available Balance < 0
Liquidation Process
Three-phase approach prioritizes:
- Opposite contract positions (hedge mode)
- Delta-neutral position reductions
- Highest-risk unhedged positions
Example Liquidation Scenario
- Initial Maintenance Ratio: 93%
- After order cancellation: 95%
- Position reduction improves ratio to 97.5%
FAQ Section
Q: How is USD value calculated for non-USD pairs?
A: We use conversion hierarchies:
- Direct USD index price
- USDT pair × USDT/USD rate
- BTC pair × BTC/USD rate
- ETH pair × ETH/USD rate
Q: What happens during forced liquidation?
A: The system sequentially:
- Cancels all cross-margin orders
- Liquidates positions per risk priority
- Uses insurance fund for negative balances
Q: How are discount rates applied?
A: Tiered rates reduce effective collateral value based on position size thresholds (e.g., 0-20 BTC @ 98%, 20-25 BTC @ 97.5%)
Q: What's the advantage of cross-margin vs isolated?
A: Cross-margin pools all assets to prevent individual position liquidations, while isolated margin contains risk to specific positions
Q: How does interest-free borrowing work?
A: Unrealized losses from derivatives enjoy interest-free limits. Interest accrues only when liability exceeds this threshold