Introduction
Multi-currency cross-margin mode enables trading across all instruments—spot, margin, futures, perpetual swaps, and options—using deposited assets in your trading account. Margin calculations are based on the USD value of your assets, ensuring flexibility for orders and positions.
Auto-Borrow Mode:
When enabled, even if a currency’s available balance is insufficient, trades can proceed if the USD-equivalent equity is adequate. Overselling or derivative losses may generate liabilities with automatic interest accrual.
Risk Management:
- Risks are measured in USD.
- Positions remain open if adjusted equity covers maintenance margins.
- Insufficient equity triggers partial/full liquidation.
- Isolate risks via isolated margin mode.
Key Terms & Formulas
Currency Metrics
| Term | Definition | Formula |
|---|---|---|
| Balance | Total assets of a currency in the account. | cashBal (API) |
| Floating PnL (Cross) | Unrealized P/L from positions settled in the currency. | Sum of futures/perpetual swaps PnL |
| Equity (Cross) | Currency’s net value. | Balance + Floating PnL + Options value – Accrued interest |
| Frozen Equity | Assets locked in orders/positions. | Includes spot sells, options buys, and estimated fees. |
| Liability | Debt from negative equity. | Abs{Min[0, Equity]} + Isolated margin liabilities |
Example:
- Holding 2 BTC (100,000 USD/BTC), 6,000 SOL (200 USD/SOL), and 110,000 USDT.
A 0.5 BTC perpetual long position with 10,000 USD PnL adjusts equity as:
- BTC: 2 (no PnL)
- USDT: 110,000 + 10,000 = 120,000
Account-Level Calculations
| Term | Formula |
|---|---|
| Adjusted Equity | ∑(Currency equity × Discount rate × USD price) |
| Position Value | Sum of all positions + potential borrowing (USD). |
| Maintenance Margin | ∑(Position value × Tier maintenance rate) |
Discount Rate Example:
- BTC tiered rates (0–20 BTC: 0.98) applied to equity.
- 100 BTC × 60,000 USD = 6M USD → Adjusted: 5,785,500 USD after discounts.
Trading Rules
Auto-Borrow Mode
- Logic: Orders execute if adjusted equity ≥ frozen margin, triggering borrowing if needed.
- Example: Selling 120,000 USDT with only 110,000 available borrows 10,000 USDT at 5x leverage (2,000 margin).
Non-Borrow Mode
- Logic: Adjusted equity and currency-specific balances must cover orders.
- Example: Selling 120,000 USDT fails if only 110,000 USDT is available.
Risk Assessment
Order Cancellation
Rules: Cancels occur if:
- Adjusted equity < maintenance margin + order fees.
- Non-borrow mode: Available equity < required margin.
Pre-Liquidation
- Triggers: Maintenance margin ratio ≤ 100%.
Phases:
- Offset hedge positions.
- Delta-neutral liquidation.
- Unhedged position reduction.
Example: BTC futures liquidation prioritizes delta-hedging with options before unhedged contracts.
FAQ
What is adjusted equity?
Adjusted equity is the USD value of all assets after applying currency-specific discount rates, used to calculate available margin.
How does auto-borrow work?
When enabled, trades proceed even with insufficient currency balances, borrowing the shortfall automatically if USD equity is adequate.
What triggers liquidation?
Positions are liquidated if the maintenance margin ratio drops to ≤ 100%, starting with high-risk hedges.
👉 Learn more about leveraging cross-margin trading
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Risk Disclosure: Cross-margin trading involves high risk. Monitor margins closely and maintain adequate equity to avoid liquidation.
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