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How to Calculate Margin in Multi-Assets Mode

2022-07-06 07:02

How to check your account margin ratio under the Multi-Assets Mode?

If you select the [Multi-Assets Mode], you will see a [Multi-Assets] tag on top 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 the margin ratio reaches 100%, all positions will be liquidated.

How to calculate the margin ratio in the Multi-Assets Mode?

You can use the following equation to calculate your margin ratio in the Multi-Assets Mode:
Account Margin Ratio = Account Maintenance Margin / Account Equity
  • Account Maintenance Margin: Sum of the Maintenance Margin of all cross positions (in USD).
  • Account Equity: Sum of margin balance of all cross positions (in USD).
Please note that the margin ratio is based on the prevailing market rate for USDTUSD and BUSDUSD pairs.
Example:
Suppose the asset pairs and their respective floating conversion rates are as follows:
Asset Pair
Asset Index
Index Bid Buffer
Index Ask Buffer
Bid Rate
Ask Rate
USDTUSD
0.99
0.01
0.005
0.9801
0.99495
BUSDUSD
1
0
0
1
1
You want to trade 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. Whether you are using the Isolated or the Cross Margin Mode, the account status and calculation changes of various parameters are as follows:

1. Initial state - No open positions

Symbol
BTCUSDT
ETHBUSD_210326
Margin Asset
USDT
BUSD
Asset Wallet Balance
200
220
Asset Equity
200
220
Maintenance Margin Ratio
0.008
0.01
Initial Margin Ratio
0.01 (100x)
0.02 (50x)
Unrealized PnL
0
0
Under the Single-Asset Mode:
USDT available for order = 200 BUSD available for order = 220
Under the Multi-Assets Mode:
Account Equity = ∑min(assetEquity*bidRate, assetEquity*askRate) = 200 * 0.9801 + 220 * 1 = 416.02
As there are no open positions, assetCrossInitialMargin = 0
uniAvailableForOrder = accountEquity-∑(assetCrossInitialMargin*askRate) = 416.02 - 0 = 416.02
USDT Available for Order = 416.02 / 0.99495 = 418.13
BUSD Available for Order = 416.02 / 1 = 416.02
Account Maintenance Margin Ratio = 0
Margin Ratio = Account Maintenance Margin / Account Equity = 0

2. With open positions

Symbol
BTCUSDT
ETHBUSD_210326
Margin Asset
USDT
BUSD
Asset Wallet Balance
200
220
Asset Equity
200
220
Maintenance Margin Ratio
0.008
0.01
Initial Margin Ratio
0.01 (100x)
0.02 (50x)
Position Quantity
0.5
20
Entry Price
20,000 USDT
600 BUSD
Mark Price
20,000 USDT
600 BUSD
Unrealized PnL
0
0
Account Maintenance Margin = ∑assetMM*askRate = 0.5 * 20,000 * 0.008 * 0.99495 + 20 * 600 * 0.01 * 1 = 199.596
As there is no unrealized PnL, Account Equity = accountWalletBalance = 416.02
uniAvailableForOrder = Account Equity - ∑(assetCrossInitialMargin * askRate) = 416.02 - (0.5 * 20,000 * 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

Symbol
BTCUSDT
ETHBUSD_210326
Margin Asset
USDT
BUSD
Asset Wallet Balance
200
220
Asset Equity
200 - 500 = -300
220 + 400 = 620
Maintenance Margin Ratio
0.008
0.01
Initial Margin Ratio
0.01 (100x)
0.02 (50x)
Position Quantity
0.5
20
Entry Price
20,000 USDT
600 BUSD
Mark Price
19,000 USDT
620 BUSD
Unrealized PnL
0.5 * (19,000 - 20,000) = -500
20 * (620 - 600)= 400

Account Maintenance Margin = ∑assetMM*askRate = 0.5 * 19,000 * 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 * 19,000 * 0.01 * 0.99495 + 20 * 620 * 0.02 * 1) = -21
USDT Available for Order and BUSD Available for Order are both 0
Margin Ratio = Account Maintenance Margin / Account Equity = 199.61 / 321.515 = 0.62084 = 62.08%