What is Cross Margin Pro?
Binance Cross Margin Pro is a product for advanced traders. It supports up to 10x leverage and requires reduced Initial and Maintenance Margins. Please refer to the step-by-step guide in How to Activate the Cross Margin Pro Mode on Binance? for more details.
Mode | Cross Margin Classic | Cross Margin Pro |
| Margin Type | Cross Margin You’re able to switch to the Cross Margin Pro mode if the Collateral Margin Level in the Classic mode is above 1.25. | Cross Margin You’re able to switch back to Cross Margin Classic if the Collateral Margin Level (in the Classic mode) is above the Initial Risk Ratio. |
| Leverage | Fixed at account level, 3x or 5x | Leverage and borrow amount are set according to the loanable coin’s risk bracket. The maximum leverage is 10x. Assets with higher leverage have lower borrowing limits, whereas those with lower leverage possess higher limits. |
| Margin Level | Total Asset / (Total Liability + Interest) | ∑Net Equity / ∑Required Maintenance Margin *Please refer to the calculation example under the “Example” section. |
| Liquidation Margin Level Trigger Threshold | Margin Level ≤ 1.1 (Cross Margin 3x and 5x leverage) | Margin Level ≤ 1.0 (Cross Margin Pro mode) |
| Borrowing Limits | Tiered, based on VIP level | Tiered, based on VIP level and tiered position Due to a lower Initial Margin requirement, the Cross Margin Pro mode enables higher capital efficiency. |
| Collateral Margin Level Impact | Only the maximum borrowing amount and the maximum transfer-out amount are impacted. Liquidation is not affected by asset haircut. | Only the maximum borrowing amount and the maximum transfer-out amount are impacted. Liquidation is not affected by asset haircut or collateral margin level. |
How are the Cross Margin Pro Margin Level and Collateral Margin Level calculated?
Parameter | Calculation | Description |
| Cross Margin Pro Margin Level | ∑Net Equity / ∑Maintenance Margin | The account’s total net equity divided by the total Maintenance Margin. |
∑Net Equity | ∑Asset - ∑(Liability + Interest) | Total asset value minus total liability and outstanding interest of the Cross Margin account (in USDT). *Total refers to the summation over all tokens. |
∑Maintenance Margin | ∑Loan amount in USDT * Maintenance Margin Rate Note: The Maintenance Margin Rate (MMR) for a particular token can be found here. | Total amount of Maintenance Margin (in USDT). *Total refers to the summation over all liability tokens. |
∑Initial Margin | ∑ Loan Amount * Initial Margin Rate Initial Margin Rate (IMR) = 1 / (Leverage - 1) | Total amount of Initial Margin (in USDT). *Total refers to the summation over all liability tokens. |
Available Margin | Max (∑Net Collateral - ∑Initial Margin, 0) | Available margin is used to determine the additional maximum borrowing amount. |
Collateral Margin Level | ∑Collateral Value / Total Liability | Collateral value refers to the asset value with haircut. |
∑Net Collateral | ∑Collateral Value - ∑(Liability + Interest) | Collateral Value refers to the asset value with haircut. |
Impacts of Margin Level and Collateral Margin Level in Cross Margin Pro
Collateral Margin Level | Transfer | Convert to Cross Margin Classic (5x) |
Collateral Margin Level > 2 | Y | Y |
1.25 ≤ Collateral Margin Level ≤ 2 | N | Y |
Collateral Margin Level < 1.25 | N | Y/N* |
*You can switch back to 5x if your Margin Level (without haircut) in the Classic mode is higher than the Initial Risk Ratio (1.5 for Cross Margin 3x and 1.25 for Cross Margin 5x).
Note: In the Cross Margin Pro mode, the amount you can borrow depends on your “available margin”.
Margin Level | Trade | Margin Call | Liquidation |
1.5 ≤ Margin Level | Y | N | N |
1< Margin Level ≤ 1.5 | Y | Y | N |
Margin Level ≤ 1.0 | N | N | Y |
Example 1: A single liability coin with a single leverage tier
Note: The illustration below is a purely hypothetical example to demonstrate how Margin Level and Collateral Margin Level are calculated, as well as their impacts, in the Cross Margin Pro mode.
To calculate the maximum amount that can be borrowed for a specific liability coin and the Margin Level in the Cross Margin Pro mode, both the tiered collateral ratio and the Liability Coin Leverage table are required. Suppose the hypothetical collateral ratio and the liability coin maintenance/initial margin rate are as follows. Also, assume that the Interest is zero.
Liability Coin | Tier | Max. Leverage | Liability Value in USDT | Maintenance Margin Rate | Initial Margin Rate |
BTC | 1 | 10x | 0 - 1,000,000 | 2% | 11.12% |
2 | 8x | 1,000,000 - 2,000,000 | 3% | 14.29% | |
3 | 5x | 2,000,000 - 3,000,000 | 4% | 25% | |
4 | 3x | 3,000,000 - 4,000,000 | 5% | 50% | |
USDT | 1 | 10x | 0 - 1,000,000 | 3% | 11.12% |
2 | 8x | 1,000,000 - 2,000,000 | 4% | 14.29% | |
3 | 5x | 2,000,000 - 3,000,000 | 5% | 25% | |
4 | 3x | 3,000,000 - 4,000,000 | 6% | 50% |
Collateral Coin | Tier | Amount | Collateral Ratio |
BTC, USDT | 1 | 0 - 1,000,000 | 1 |
2 | 1,000,000 - 2,000,000 | 0.975 | |
3 | 2,000,000 - 3,000,000 | 0.95 | |
4 | 3,000,000 - 4,000,000 | 0.9 | |
5 | 4,000,000 - 5,000,000 | 0.85 |
Suppose under the current scenario, User A initially has 1 BTC, and has already borrowed 1 BTC.
User A’s Coin Holding | Position | Liability | Index Price |
BTC | 2 | 1 | 10,000 |
USDT | 0 | 0 | 1 |
The below table demonstrates, in the current scenario and after reaching the maximum borrowable amount of USDT, how the Cross Margin Pro mode’s Margin Level, Collateral Margin Level, and maximum borrowable amount in USDT are calculated, as well as their impacts.
Basic Parameters for Further Calculations
Borrow 10,000 USDT | Borrow 89,928 USDT (The Max. Borrowable Amount) | ||
In USDT | ∑Asset | = 2 * 10,000 = 20,000 USDT | = 2 * 10,000 + 79,928 = 99,928 USDT (2 BTC and 79,928 USDT) |
∑Collateral Value | = 2 * 10,000 * 100% = 20,000 USDT | = 2 * 10,000 * 100% + 79,928 * 100% = 99,928 USDT | |
Total Liability | = 10,000 USDT | = 10,000 + 79,928 = 89,928 USDT (1 BTC and 79,928 USDT) | |
∑Net Equity | = 20,000 - 10,000 = 10,000 USDT | = 99,928 - 89,928 = 10,000 USDT | |
∑Initial Margin | = 10,000 * 11.12% = 1,112 USDT | = 10,000 * 11.12% + 79,928 * 11.12% = 10,000 USDT | |
∑Maintenance Margin | = 10,000 * 2% = 200 USDT | = 10,000 * 2% + 79,928 * 3% = 2,597.84 USDT |
Margin Level Calculation
Margin Level | = ∑Net Equity / ∑Maintenance Margin = 10,000 / 200 = 50 | = ∑Net Equity / ∑Maintenance Margin = 10,000 / (10,000 * 2% + 79,928 * 3%) = 3.849 |
Margin Level Health | Margin Level > MCR The account is low risk | Margin Level > MCR The account is low risk |
Collateral Margin Level Calculation
Collateral Margin Level | = ∑Collateral Value / Total Liability = 20,000/10,000=2 | = ∑Collateral Value / Total Liability = 99,928 / (10,000 + 79,928) = 1.11 |
Transfer Status | Collateral Margin Level = 2 The user is restricted from transferring funds out of the margin account. | Collateral Margin Level < 2 The user is restricted from transferring funds out of the margin account. |
Max Transfer Out Amount | 0 | 0 |
Convert to Cross Margin Classic (5X) | Yes Collateral Margin Level > 1.25 | No Since ∑Asset/∑Liability = 1.19, Collateral Margin Level < 1.25 |
Available Margin Amount and Borrowable Amount
Available Margin Amount | Available Margin Amount will be displayed at the wallet page. = Max (∑Net Collateral - ∑Initial Margin, 0) = Max (∑Collateral Value - ∑Liability - ∑Initial Margin, 0) = Max ( 20,000 - 10,000 - 1,112, 0) = 8,888 USDT | Available Margin Amount will be displayed at the wallet page. = Max (∑Net Collateral - ∑Initial Margin, 0) = Max (∑Collateral Value - ∑Liability - ∑Initial Margin, 0) =Max (99,928 - 89,928 - 10,000, 0) = 0 USDT |
| Additional BTC max borrowable amount | = Available Margin Amount / Initial Margin Rate = 8,888 / 11.12% = 79,928 USDT With the same asset amount, the borrowable amount is higher than in the Cross Margin Classic mode. | = Available Margin Amount / Initial Margin Rate = 0 |
Example 2: Liability coins impacted by leverage tiering and collateral haircuts
Note: The illustration below is a purely hypothetical example to demonstrate how Margin Level and Collateral Margin Level are calculated, as well as their impacts, in the Cross Margin Pro mode.
To calculate the maximum amount that can be borrowed for a specific liability coin and the Margin Level in the Cross Margin Pro mode, both the tiered collateral ratio and the liability maintenance rate are required. Suppose the hypothetical collateral ratio and the liability coin maintenance/initial margin rate are as follows. Also, assume that the Interest is zero.
Liability Coin | Tier | Max. Leverage | Liability Value in USDT | Maintenance Margin Rate | Initial Margin Rate |
BTC | 1 | 10x | 0 - 1,000,000 | 2% | 11.12% |
2 | 8x | 1,000,000 - 2,000,000 | 3% | 14.29% | |
3 | 5x | 2,000,000 - 3,000,000 | 4% | 25% | |
4 | 3x | 3,000,000 - 4,000,000 | 5% | 50% | |
5 | 2x | 4,000,000 - 5,000,000 | 8% | 100% | |
ETH | 1 | 8x | 0 - 2,000,000 | 5% | 14.29% |
2 | 5x | 2,000,000 - 3,000,000 | 8% | 25% | |
3 | 3x | 3,000,000 - 4,000,000 | 10% | 50% |
Collateral Coin | Tier | Amount | Collateral Ratio |
BTC, USDT | 1 | 0 - 1,000,000 | 1 |
2 | 1,000,000 - 2,000,000 | 0.975 | |
3 | 2,000,000 - 3,000,000 | 0.95 | |
4 | 3,000,000 - 4,000,000 | 0.9 | |
5 | 4,000,000 - 5,000,000 | 0.85 | |
ETH | 1 | 0 - 1,100,000 | 1 |
2 | 1,100,000 - 2,100,000 | 0.975 | |
3 | 2,100,000 - 3,100,000 | 0.95 | |
4 | 3,100,000 - 4,100,000 | 0.9 | |
5 | 4,100,000 - 5,100,000 | 0.85 |
Suppose under the current scenario, User A initially has 49 BTC and 49 ETH, and has already borrowed 50 BTC and 50 ETH.
User A’s Coin Holding | Position | Liability | Index Price |
BTC | 99 | 50 | 10,000 |
ETH | 99 | 50 | 1,000 |
The below table demonstrates, in the current scenario and after reaching the maximum borrowable amount of BTC, how the Cross Margin Pro Margin Level, Collateral Margin Level, and maximum borrowable amount in USDT are calculated, as well as their impacts.
Basic Parameters for Further Calculations
Initial Borrow of 50 BTC and 50 ETH | Additional Borrow of 222.50 BTC (The Max. Borrowable Amount) | ||
In USDT | ∑Asset | = 99 * 10,000 + 99 * 1,000 = 1,089,000 USDT | = (99 + 222.50142857) * 10,000 + 99 * 1,000 = 3,314,014.2857 USDT (321.50142857 BTC and 99 ETH) |
∑Collateral Value | = 99 * 10,000 * 100% +99 * 1,000 * 100% = 1,089,000 USDT | = 100 * 10,000 * 100% + 100 * 10,000 * 97.5% + 100 * 10,000 * 95% + 21.50142857 * 10,000 * 90% + 99 * 1,000 * 100% = 3,217,512.85713 USDT Note: ∑Collateral Value is smaller than ∑Asset due to the haircut impact (see the tiered collateral ratio table above) | |
∑Liability | = 50 * 10,000 + 50 * 1,000 = 550,000 USDT | = 272.50142857 * 10,000 + 50 * 1,000 = 2,775,014.2857 USDT (272.50142857 BTC and 50 ETH) | |
∑Net Equity | = ∑Asset- Total Liability =1,089,000 - 550,000 = 539,000 USDT | = ∑Asset- ∑Liability = 3,314,014.2857 - 2,775,014.2857 = 539,000 USDT | |
∑Initial Margin | = 50 * 10,000 * 11.12% + 50 * 1,000 * 14.29% = 62,745 USDT | = 100 * 10,000 * 11.12% +100 * 10,000 * 14.29% + 72.50142857 * 10,000 * 25% + 50 * 1,000 * 14.29% = 442,498.571425 USDT (See the Liability Coin Leverage table above. Total BTC borrow amount is 272.50142857, which falls under Tier 3. ETH borrow amount is 50, also falls under Tier 1) | |
∑Maintenance Margin | = 50 * 10,000 * 2% + 50 * 1,000 * 5% = 12,500 USDT | = 100 * 10,000 * 2% + 100 * 10,000 * 3% + 72.50142857 * 10,000 * 4% + 50 * 1,000 * 5% = 81,500.571428 USDT (See the Liability Coin Leverage table above. ) | |
Margin Level Calculation
Margin Level | = ∑Net Equity / ∑Maintenance Margin = 539,000 / 12,500 = 43.12 | = ∑Net Equity / ∑Maintenance Margin = 539,000 / 81,500.571428 = 6.61345 |
Margin Level Health | Margin Level > MCR The account is low risk | Margin Level > MCR The account is low risk |
Collateral Margin Level Calculation
Collateral Margin Level | = ∑Collateral Value / Total Liability = 1,089,000 / 550,000 = 1.98 | = ∑Collateral Value / Total Liability = 3,217,512.85713 / 2,775,014.2857 = 1.159458 |
Transfer Status | Collateral Margin Level < 2 The user is restricted from transferring funds out of the Margin Account. | Collateral Margin Level < 2 The user is restricted from transferring funds out of the Margin Account. |
Max Transfer Out Amount | 0 | 0 |
Convert to Cross Margin Classic (5X) | Yes Collateral Margin Level > 1.25 | No Since ∑Asset / ∑Liability = 1.19, Collateral Margin Level < 1.25 |
Available Margin Amount
Available Margin Amount | Available Margin Amount will be displayed at the wallet page. = Max (∑Net Collateral - ∑Initial Margin, 0) = Max (∑Collateral Value - ∑Liability - ∑Initial Margin, 0) = Max (1,089,000 - 550,000 - 62,745, 0) = 476,255 USDT | Available Margin Amount will be displayed at the wallet page. = Max (∑Net Collateral - ∑Initial Margin, 0) = Max (∑Collateral Value -∑Liability - ∑Initial Margin, 0) = 0 Since ∑Collateral Value - ∑Liability - ∑Initial Margin = 3,217,512.85713 - 2,775,014.2857 - 442,498.571425 = 0 |
| Additional BTC max borrowable amount | 476,255 / 11.12% = 4,282,599, above the Tier 4 borrow range The maximum borrowing amount for BTC is not as straightforward as in Example 1. You may need to attempt 1-2 times to determine the tier in which the maximum borrowing amount falls, in order to reduce the Available Margin Amount to zero. The Cross Margin Pro mode is more capital-efficient than the Cross Margin Classic mode. With the same net equity amount, the borrowable amount in the Cross Margin Pro mode is higher. | 0 |
When can I switch to the Cross Margin Pro mode?
If the Margin Level of your Cross Margin Pro account is greater than 2.5, you can switch to 10x.
If the Collateral Margin Level of your Cross Margin Classic mode is above 1.25, you can switch to the Cross Margin Pro mode. If you're not eligible for switching, you’ll see an error message. You are only allowed to switch 5 times per day between different modes.
If the Collateral Margin Level of your Cross Margin Classic mode is above 1.25, you can switch to the Cross Margin Pro mode. If you're not eligible for switching, you’ll see an error message. You are only allowed to switch 5 times per day between different modes.
Can I switch back to the Cross Margin Classic mode?
Yes, you can switch back to 5x if your Margin Level (in the Classic mode) is higher than the Initial Risk Ratio, which is 1.5 for Cross Margin 3x and 1.25 for Cross Margin 5x. If you're not eligible for switching, you’ll see an error message. You are only allowed to switch 5 times per day between different modes.
Can I customize my Margin Call Ratio (MCR) in the Cross Margin Pro mode?
You retain the option to customize your own Margin Call Ratio (MCR) in the Cross Margin Pro mode. However, the MCR must fall between 1.3 and 2. The default MCR for Cross Margin Pro is 1.5.
Will my customized MCR remain the same after switching?
When you initially switch to the Cross Margin Pro mode, your MCR will automatically default to 1.5. However, once you have customized your MCR in both the Pro and Classic modes, these settings will be retained in the system. Consequently, they will be set as the default MCR when you toggle between the Classic and Pro modes.
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