What is Margin Level?
Margin trading allows you to add leverage to your positions in order to increase your potential earnings and profits. Binance uses the margin level to evaluate the risk level of your margin account.
How is Margin Level calculated?
Margin Level = Total Assets Value/(Total Borrowed Value + Total Accrued Interest Value)
*The actual amount you can borrow will be calculated by the system automatically when you initiate a Borrow.
If your margin level is greater or equal to 1.5, you can use all the Margin functions normally. You can trade, loan and transfer funds to/from your margin account.
If your margin level is less than or equal to 1.3, our system will trigger a margin call and you will receive a notification through text and email.
If your margin level is less than or equal to 1.1, our system will trigger the liquidation engine and we will send you an on-page notification, text message and email to inform you that your assets will be liquidated and your loans repaid.
To avoid potential market manipulation, all BTC values are calculated with a composited index price which includes price data from multiple exchanges, rather than simple market price from Binance markets.