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Tiered Leverage Function on Isolated Margin
Binance
2020-07-02 09:52

1. Business Introduction

With Tiered Leverage, the system automatically adjusts the effective leverage based on the amount of borrowed funds of the user, which means that the leverage for an isolated trading pair is dynamic. Thus, the corresponding initial risk ratio and liquidation risk ratio will vary. Herein, there are 10 tiers for 10x isolated margin and 5 tiers for 5x.

2. Tiered Leverage Risk Parameters

  • 10-level tiered leverage supports up to 10x leverage on isolated trading pair

Tier

Liquidation Risk Ratio

Pre-liquidation Ratio

Margin Call Ratio

Initial Risk Ratio

Effective Multiple

(leverage)

1

1.050

1.070

1.090

1.111

10

2

1.061

1.081

1.101

1.127

8.90

3

1.072

1.092

1.112

1.142

8.04

4

1.083

1.103

1.123

1.157

7.35

5

1.094

1.114

1.134

1.173

6.79

6

1.106

1.126

1.146

1.188

6.31

7

1.117

1.137

1.157

1.204

5.91

8

1.128

1.148

1.168

1.219

5.56

9

1.139

1.159

1.179

1.235

5.26

10

1.150

1.170

1.190

1.250

5

  • 5-level tiered leverage supports up to 5x leverage on isolated trading pairs.

Tier

Liquidation Risk Ratio

Pre-liquidation Ratio

Margin Call Ratio

Initial Risk Ratio

Effective Multiple

(leverage)

1

1.150

1.170

1.190

1.250

5

2

1.158

1.178

1.198

1.313

4.20

3

1.165

1.185

1.205

1.375

3.67

4

1.173

1.193

1.213

1.438

3.29

5

1.180

1.200

1.220

1.500

3

 

3. Borrowing impact

The rules for borrowing on Isolated Tiered Margin are:

    • The greater the amount of funds borrowed, the higher the tiered leverage level, the lower the effective multiple level, and the higher the initial and liquidation ratios.
    • The smaller the amount of funds borrowed, the lower the tiered leverage level, the higher the effective multiple level, and the lower the initial and liquidation ratios.
    • If the user simultaneously borrows the base currency and the quote currency, the system will calculate the new levels separately and the tier will be determined based on whichever is higher.

Using BTC/USDT as an example, the Tiered Leverage are shown in the following table:

Tier

Max Base

Max Quote

Liquidation Risk Ratio

Effective Multiple

(leverage)

1

9

70,000

1.050

10

2

18

140,000

1.061

8.90

3

27

210,000

1.072

8.04

4

36

280,000

1.083

7.35

5

45

350,000

1.094

6.79

6

54

420,000

1.106

6.31

7

63

490,000

1.117

5.91

8

72

560,000

1.128

5.56

9

81

630,000

1.139

5.26

10

90

700,000

1.150

5

 

  • For details about other trading pairs, please refer to the Isolated Margin Tiered Data.
  • Assuming the user borrowed 15 BTC and 250,000 USDT on Isolated Margin:
    • The tier is 4: The borrowed BTC tier is 2 and the borrowed USDT tier is 4. The higher tier is used, which would be tier 4;
    • The effective multiple is 7.35 and the corresponding liquidation risk ratio is 1.083;
  • Borrowing for VIP users and sub-accounts

For VIP users and sub-accounts, the system will automatically match the corresponding tier leverage level based on the amount borrowed.

4. How to use Tiered leverage

  • Effective leverage for isolated margin is shown below:

  • Tier information is shown when borrowing on Borrow/Repay page

  • Isolated margin tiered data is shown here:

 

 


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Isolated Margin User Guide (Web)