Buy Crypto
Pay with
Markets
NFT
New
Downloads
English
USD
Support Center
FAQ
Crypto Derivatives
Futures Contracts
Futures Guide

How to use Multi-Assets mode?

Binance
2021-05-28 01:42

What is Multi-Assets Mode?

Multi-Assets Mode allows users to trade USDⓈ-M Futures across multiple margin assets. Presently, Binance Futures offers USDT-margined and BUSD-margined contracts under the USDⓈ-M Futures product line. With the newly launched Multi-Assets Mode, users will share their margin across USDT-margined and BUSD-margined contracts. Any profits made on either contract can be used as margin; this means that one position’s profits can offset losses in another losing position. Thus, the margin balance only reflects the net P&L between positions in the two markets. This new feature only supports the Cross Margin Mode.
Meanwhile, users who want to trade with only a single margin asset (i.e, BUSD only) can select the Single-Asset Mode. In this case, margin is shared across positions in the same margined asset (i.e, BUSD-margined contracts). Profits and losses of positions within the same margin asset can offset each other. The Single-Asset Mode supports both Cross Margin Mode and Isolated Margin Mode.

How to switch between the Single/Multi-Assets Mode?

Please note that the Multi-Assets Mode only applies to USDⓈ-M Futures. On the USDⓈ-M Futures trading interface, go to the top-right corner and select Preference > Asset Mode.
In the Asset Mode tab, select between Single-Asset Mode or Multi-Assets Mode. Single-Assets Mode is enabled by default.
Do note that if there are open positions or open orders in USDⓈ-M Futures, Multi-Assets Mode cannot be activated.
Similarly, if there are active positions in grid trading, Multi-Asset Mode cannot be activated.
Suppose you are holding positions in Isolated mode. In that case, you will be asked to switch all open positions to Cross Mode before enabling the Multi-Assets function.
When the contract margin assets do not meet the system requirements, they will be automatically converted into other assets under the U-standard contract account as margin assets. Please see the rules of automatic exchange of joint margin.
Before activating Multi-Assets Mode, please read this guide in detail to better manage USDⓈ-M Futures account risk.

How to check your account Margin ratio under Multi-Assets mode?

If you have selected the Multi-Assets Mode, a “Multi-Assets” tag will be indicated on the top-right corner of the Margin Ratio widget.
Since your margin balance is shared across multiple positions in the Multi-Assets Mode, please monitor your margin ratio closely. Once Margin Ratio reaches 100%, all positions will be liquidated.
Margin Ratio Widget under the Multi-Assets Mode
Following is the equation used to calculate your margin ratio in Multi-Assets Mode:
Account Margin Ratio = Account Maintenance Margin / Account Equity
  • Account Maintenance Margin: The sum of maintenance margin of all cross positions in USD.
  • Account Equity: The sum of margin balances of all cross positions in USD.

How to check the balance of your assets?

In the trading interface, scroll down to your positions panel and select the Assets tab.
Alternatively, you can check the balance of the assets in your Futures Wallet.

How to calculate my Margin Ratio under Multi-Asset mode?

Please note that the margin ratio is based on the prevailing market rate for USDTUSD and BUSDUSD pairs.
Assume the assetPair and its respective floating conversion rates are as follows:
assetPairassetIndexindexBidBufferindexAskBufferbidRateaskRate
USDTUSD0.990.010.0050.98010.99495
BUSDUSD10011
Suppose a user wants to trade in two contracts, BTCUSDT perpetual and ETHBUSD_210326 with leverage of 100x and 50x, respectively. In this scenario, the maintenance margin ratio will be 0.8% and 1%, respectively. Regardless of isolated or cross-margin, the account status and calculation changes of various parameters are as follows.
1. Initial state - No open position
SymbolBTCUSDTETHBUSD_210326
Margin AssetUSDTBUSD
assetWalletBalance200220
assetEquity200220
Maintenance Margin Rate 0.0080.01
Initial Margin Rate0.01 (100x)0.02 (50x)
Unrealized P&L00
Single-Asset mode: USDT available for order = 200,BUSD available for order = 220
Multi-Assets mode: Account Equity = ∑min(assetEquity*bidRate, assetEquity*askRate) = 200*0.9801+220*1 = 416.02
As there are no open positions, assetCrossInitialMargin is 0, uniAvailableForOrder = accountEquity-∑(assetCrossInitialMargin*askRate) = 416.02-0 = 416.02
USDT AvailableForOrder = 416.02/0.99495 = 418.13
BUSD AvailableForOrder = 416.02/1 = 416.02
Account Maintenance Margin = 0
Margin Ratio = Account Maintenance Margin / Account Equity = 0
2. With open positions
SymbolBTCUSDTETHBUSD_210326
Margin AssetUSDTBUSD
assetWalletBalance200220
assetEquity200220
Maintenance Margin Rate0.0080.01
Initial Margin Rate0.01 (100x)0.02 (50x)
Position quantity0.520
entryPrice20,000 USDT600 BUSD
markPrice20,000 USDT600 BUSD
Unrealized P&L00
Account Maintenance Margin = ∑assetMM*askRate = 0.5*20000*0.008*0.99495 + 20*600*0.01*1 = 199.596
As there is no unrealized P/L, Account Equity = accountWalletBalance = 416.02
uniAvailableForOrder = Account Equity - ∑(assetCrossInitialMargin * askRate) = 416.02 - (0.5*20000*0.01*0.99495+20*600*0.02*1)= 76.525
USDT available for order = 76.525/0.99495 = 76.91
BUSD available for order = 76.525/1 = 76.525
Margin Ratio = Account Maintenance Margin / Account Equity = 199.596/416.02 = 0.47977 = 47.98%
3. With open positions and unrealized PnL
SymbolBTCUSDTETHBUSD_210326
Margin AssetUSDTBUSD
assetWalletBalance200220
assetEquity200-500 = -300220+400 = 620
Maintenance Margin Rate0.0080.01
Initial Margin Rate0.01 (100x)0.02 (50x)
Position quantity0.520
entryPrice20,000 USDT600 BUSD
markPrice19,000 USDT620 BUSD
Unrealized P&L0.5*(19000-20000) = -50020*(620-600)= 400
Account Maintenance Margin = ∑assetMM*askRate = 0.5*19000*0.008*0.99495 + 20*620*0.01*1 = 199.61
With unrealized PnL, Account Equity = ∑min(assetEquity*bidRate, assetEquity*askRate) = -300*0.99495+620*1=321.515
uniAvailableForOrder = Account Equity - ∑(assetCrossInitialMargin * askRate) = 321.515 - (0.5*19000*0.01*0.99495+20*620*0.02*1) = -21
USDT AvailableForOrder and BUSD AvailableForOrder are both 0。
Margin Ratio = Account Maintenance Margin / Account Equity = 199.61/321.515 = 0.62084 = 62.08%

Auto Exchange

Under the Multi-Assets mode, when Asset Wallet Balance is less than autoExchangeThreshold in $USD, all other assets under USDⓈ-M Futures wallet will be automatically exchanged to margin assets. The auto exchange is handled by Match Engine. Please note that auto exchange does not charge commission fees.
Please refer to the rules of the auto exchange.

Auto Exchange Threshold & Calculation

ParametersDescriptionValue/Calculations
autoExchangeThresholdAuto exchange threshold with notional amount in margin asset, compared with assetWalletBalanceCurrent default autoExchangeThreshold is -10000, subject to changes
accountDeficitAll assetWalletBalance less than autoExchangeThreshold in $USDaccountDeficit = min(0, ∑min(assetWalletBalance, assetWalletBalance-autoExchangeThreshold)*askRate) with assetWalletBalance less than autoExchangeThreshold
accountSurplusAll assetWalletBalance greater than autoExchangeThreshold in $USDaccountSurplus = max(0, ∑min(assetWalletBalance, assetWalletBalance-autoExchangeThreshold)*bidRate) with assetWalletBalance greater than autoExchangeThreshold
exchangeRatioexchangeRatio or 1/exchangeRatio is the ratio of asset to be exchanged or repaidexchangeRatio = -accountDeficit/accountSurplus
assetExchangeAmountAmount of asset with assetWalletBalance greater than autoExchangeThreshold to be exchangedAmount to be exchanged, always positive
assetRepayAmountAmount of asset with assetWalletBalance less than autoExchangeThreshold to be repaidAmount to be repaid, always positive
Auto exchange happens periodically, if the wallet balance of any asset is less than autoExchangeThreshold, the system will exchange the user's assets with surplus assetWalletBalance to asset with deficit assetWalletBalance.

Auto Exchange Method

i. Central bank approach with fixed counter party, negative balances in certain asset of central bank account is allowed,
ii. Exchange details recorded and traceable.
The exchange is handled by Match Engine.

Auto Exchange Rules and Exchange Ratio

i. When accountDeficit or accountSurplus equals 0
Account won't be auto exchanged.
ii. When exchangeRatio <= 1
The exchange processes all assets with surplus wallet balance as a ratio so that all assets with deficit wallet balance be covered to the maximum (0, autoExchangeThreshold). The amount of asset with assetWalletBalance greater than autoExchangeThreshold to be exchanged is assetExchangeAmount, calculated as follow:
assetExchangeAmount = min(assetWalletBalance, assetWalletBalance-autoExchangeThreshold) * exchangeRatio = min(assetWalletBalance, assetWalletBalance-autoExchangeThreshold) * accountDeficit/accountSurplus = min(assetWalletBalance, assetWalletBalance-autoExchangeThreshold) * (∑assetWalletBalance' *askRate) / (∑assetWalletBalance'' *bidRate)
In which, assetWalletBalance is the surplus wallet balance of a specific assetExchangeAmount to be calculated, assetWalletBalance' is each assetWalletBalance less than autoExchangeThreshold, and assetWalletBalance'' is each assetWalletBalance greater than autoExchangeThreshold.
And assetRepayAmount is amount of asset with assetWalletBalance less than autoExchangeThreshold to be repaid, calculated as follow:
assetRepayAmount = -min(assetWalletBalance, assetWalletBalance-autoExchangeThreshold)
So that all assets are equal or larger than max(0, autoExchangeThreshold).
iii. When exchangeRatio > 1
The surplus assets are not enough to be exchanged to the deficit assets, the ratio will be applied to the deficit assets.
Then the assetExchangeAmount is calculated as follow:
assetExchangeAmount = min(assetWalletBalance, assetWalletBalance-autoExchangeThreshold)
In which, assetWalletBalance is the surplus wallet balance of specific assetExchangeAmount to be calculated.
The assetRepayAmount is calculated as follow:
assetRepayAmount = -min(assetWalletBalance, assetWalletBalance-autoExchangeThreshold)/exchangeRatio = -min(assetWalletBalance, assetWalletBalance-autoExchangeThreshold) / (accountDeficit/accountSurplus) = -min(assetWalletBalance, assetWalletBalance-autoExchangeThreshold) / ((∑assetWalletBalance' *askRate) / (∑assetWalletBalance'' *bidRate))
in which, assetWalletBalance is the deficit wallet balance of specific assetExchangeAmount to be calculated, assetWalletBalance' is each assetWalletBalance less than autoExchangeThreshold, and assetWalletBalance'' is each assetWalletBalance greater than autoExchangeThreshold.
Related Articles
How to Open a Futures Account