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Why USDT settlement does not mean collateral is only in USDTTradFi Perpetuals on Binance are denominated and settled in USDT. However, the settlement asset and the collateral asset are not the same. If the contract specification supports the Multi-Assets Mode, a user can collateralize USDⓈ-M positions with multiple permitted assets, and margin works only in Cross Mode. Profit or loss on a USDT contract still occurs in USDT. Therefore, a wallet may show a negative USDT balance even when the total value of other collateral assets is positive. Under certain conditions, the system triggers Auto-Exchange: it proportionally converts positive balances at the market price to cover the shortfall.

Why USDT settlement does not mean collateral is only in USDT

TradFi Perpetuals on Binance are denominated and settled in USDT. However, the settlement asset and the collateral asset are not the same. If the contract specification supports the Multi-Assets Mode, a user can collateralize USDⓈ-M positions with multiple permitted assets, and margin works only in Cross Mode.
Profit or loss on a USDT contract still occurs in USDT. Therefore, a wallet may show a negative USDT balance even when the total value of other collateral assets is positive. Under certain conditions, the system triggers Auto-Exchange: it proportionally converts positive balances at the market price to cover the shortfall.
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