In Cross Margin with Multi-Asset Collateral, your USDT balance may occasionally show as negative due to realized losses. This article explains why it happens, how Flipster handles it, and what options you have to restore your balance.
Why Your USDT Balance May Be Negative
- Cross Margin Settles Losses in USDT
- All realized losses from your positions are deducted in USDT.
- If your USDT balance is insufficient to cover a loss, the account may temporarily show a negative USDT balance.
- Multi-Asset Collateral is Used Automatically
- Your other eligible assets (BTC, ETH, USDe, USDC, PUSDT, Trading bonus) can be converted automatically via Auto-Exchange to restore your USDT balance.
Auto-Exchange: How It Works
Auto-Exchange is Flipster’s automated system for settling negative USDT balances using other collateral assets.
Trigger Conditions
Auto-Exchange is triggered under the following scenarios:
- Auto-Exchange only triggers if the USDT balance is ≤ –5,000 USDT.
- Example:
- A user has -5,000 USDT.
- With BTC as collateral, the system converts:
5,000 USDT worth of BTC to restore the balance. - Learn more about Collateral Value Ratio
- Example:
Conversion Priority
Auto-Exchange converts collateral assets in a fixed sequence until the USDT deficit is resolved:
Priority Order:
BTC → ETH → USDe →USDC → PUSDT → Trading bonus
Note: The Trading bonus will be converted last.
Example:
- Balances: 50 USDC, 50 USDe, –115 USDT, 20 Trading bonus
- Auto-Exchange sequence: USDe → USDC → Trading bonus
- The system calculates each asset’s contribution based on its Collateral Value.
This ensures your USDT balance is restored efficiently while respecting the asset priority.
Manual Options to Resolve Negative USDT
If Auto-Exchange is not sufficient or you prefer manual control:
- Convert Asset Manually
- Convert other eligible assets into USDT via the Asset Overview page.
- Deposit Additional USDT
- Add USDT to your account to restore margin balance and reduce liquidation risk, and prevent auto-exchange.
Implications During Negative Balance
- Withdrawals:
- You cannot withdraw USDT while your balance is negative.
- Other assets remain available for trading, withdrawal, and/or conversion.
- Trading:
- You can continue trading using remaining eligible collateral, but monitor your Cross Margin Ratio closely to avoid liquidation.
- Liquidation Risk:
- Auto-Exchange reduces the likelihood of liquidation but does not eliminate it entirely.
- Maintain sufficient margin and monitor risk indicators.
Monitoring and Notifications
- Cross Margin Ratio
- Formula: Account Maintenance Margin ÷ Account Equity
- Indicates how close your account is to liquidation.
- Liquidation Warnings
- Notifications trigger when your Cross Margin Ratio ≥ 90%.
- Allows you to take preventive actions before positions are liquidated.