Overview
In Cross Margin with Multi-Asset Collateral mode, your Margin Ratio (also referred to as the Risk Indicator) helps you understand the overall health of your account.
It measures how much of your equity is being used to maintain your open positions.
A lower margin ratio indicates a safer position, while a higher ratio means you are closer to liquidation.
Margin Ratio Display on Cross Margin
Formulas
Cross Margin Ratio
Cross Margin Ratio = Account Maintenance Margin / Account Equity x 100%
Account Equity (Margin Balance)
Account Equity = Sum of (Collateral × Collateral Value Ratio) + Unrealized P&L
This means that your account equity is calculated based on:
- The total value of your supported collateral assets and
- Your unrealized profit or loss (P&L) from open positions.
Account Maintenance Margin
Account Maintenance Margin = Total Maintenance Margin across all positions
This represents the minimum amount of margin required to keep your open positions active.
Example Calculation
Scenario:
| Component | Value (USDT) | Collateral Value Ratio |
| BTC Collateral | 10,000 | 95% |
| ETH Collateral | 5,000 | 95% |
| USDe Collateral | 200 | 99% |
| Unrealized P&L | +200 | - |
| Maintenance Margin | 2,500 | - |
Step 1: Calculate Collateral Value
BTC: 10,000 × 95% = 9,500
ETH: 5,000 × 95% = 4,750
USDe: 200 × 99% = 198
Total Collateral Value = 9,500 + 4,750 + 198 = 14,448
Step 2: Calculate Account Equity
Account Equity = Total Collateral Value + Unrealized P&L
= 14,448 + 200 = 14,648 USDT
Step 3: Calculate Cross Margin Ratio
Cross Margin Ratio = Account Maintenance Margin ÷ Account Equity
= 2,500 ÷ 14,648 = 17.06%
Step 4: Interpretation
Your account is in the Low Risk level. You have plenty of margin left.
| Margin Ratio Range | Risk Level | Action |
| ≤ 20% | Low Risk | Plenty of margin left |
| 20% -50 % | Caution | Keep an eye on your exposure |
| ≥ 50% | Close to liquidation | Very close to liquidation |
| ≥ 100% | Liquidation | Liquidation |
Key Notes
- This metric applies only to Cross Margin accounts using Multi-Asset Collateral.
- The Collateral Value Ratio depends on the type of collateral used.
- Once the Margin Ratio reaches 100%, positions will be liquidated.
- Regularly monitoring your Margin Ratio helps you manage risk and avoid liquidation.
Risk Warning:
Trading in cryptocurrency involves risk and potential losses. Before trading, please make your investment decisions cautiously by considering your investment objectives, experience, and risk tolerance. You are solely responsible for your investment decisions, and Flipster is not liable for any losses you may incur. Derivatives trading, in particular, is subject to high market risk and price volatility. Please obtain independent advice where appropriate. This information should not be construed as financial or investment advice.