Collateral Ratio for USDT-M Positions in Multi-Asset Mode

[Estimated reading time: 3 mins]

This article explains how the collateral ratio mechanism works for USDT-M Futures positions in multi-asset mode. It covers how margin is calculated, how different coins are valued, and provides a detailed example using BTC.

Collateral Ratio Mechanism Overview

USDT-M Futures supports two margin modes:

• Single-asset mode: Only USDT is used as margin.

• Multi-asset mode: Other cryptocurrencies can also be used as margin for USDT-M Futures trading.

In multi-asset mode, a variety of coins can serve as margin. Each asset's value is converted into USDT using a collateral ratio, which adjusts its margin contribution based on market risk. The margin amount in USDT is calculated by applying the corresponding collateral ratio to each margin asset.

For more details, go to: Futures > Futures trading rules > Collateral ratio for USDT-M positions in multi-asset mode

Note: In single-asset mode, no collateral ratio is applied to non-USDT assets because they do not count toward margin. These assets can be transferred to other accounts.

Example Calculation Using BTC

Take BTC as an example:

The individual upper limit for BTC in multi-asset mode is 100 BTC, and the platform-wide upper limit is 5000 BTC. These limits may be adjusted based on market conditions and will be announced in advance.

Assume the index price of BTC is 60,000 USDT, and a user transfers 10 BTC into their USDT-M Futures account.

The BTC value is: 60,000 × 10 = 600,000 USDT

Applying the collateral ratio tiers: 100,000 × 0.975 + 400,000 × 0.97 + 100,000 × 0.965 = 582,000 USDT

Therefore, the available margin amount in multi-asset mode is 582,000 USDT.

Key Takeaways

The collateral ratio mechanism in multi-asset mode helps maintain a balanced and stable trading environment:

• It adjusts each asset's margin contribution based on market risk.

• Higher-risk assets have lower collateral ratios, helping manage volatility across supported margin assets.

FAQ

1. What are the two margin modes available for USDT-M Futures?

USDT-M Futures supports single-asset mode and multi-asset mode. In single-asset mode, only USDT is used as margin. In multi-asset mode, other cryptocurrencies can also be used as margin.

2. What is the main difference between single-asset and multi-asset margin modes?

Single-asset mode counts only USDT as margin, and no collateral ratio is applied. Multi-asset mode allows various coins to serve as margin, each adjusted by a collateral ratio based on its risk profile.

3. What is collateral ratio in multi-asset mode?

It is a risk-adjusted percentage applied to the value of non-USDT assets when calculating total margin. Assets with lower collateral ratios contribute less to usable margin.

4. Are collateral ratios applied in single-asset mode?

No. In single-asset mode, only USDT is used as margin, and the collateral ratio is not applied to other coins. Other assets can be transferred to other accounts.

5. What are the individual and platform-wide upper limits for BTC in multi-asset mode?

The individual upper limit is 100 BTC, and the platform-wide upper limit is 5000 BTC. These limits may be adjusted based on market conditions and will be announced in advance.

Disclaimer and Risk Warning All trading tutorials provided by Bitget are for educational purposes only and should not be considered financial advice. The strategies and examples shared are for illustrative purposes and may not reflect actual market conditions. Cryptocurrency trading involves significant risks, including the potential loss of your funds. Past performance does not guarantee future results. Always conduct thorough research and understand the risks involved. Bitget is not responsible for any trading decisions made by users.