Q: What is Cross Margin with Multi-Asset Collateral?
A: Cross Margin with Multi-Asset Collateral allows you to use the combined value of multiple supported assets (such as BTC, ETH, USDT, USDC, and USDe) as collateral for your perpetual trading positions. This means your margin balance is shared across all open positions, helping reduce liquidation risk and improving capital efficiency.
Q: How does Cross Margin differ from Isolated Margin?
A:
- Cross Margin: All positions share the same margin balance. Losses and profits from one position can affect others.
- Isolated Margin: Each position has a separate margin balance, and liquidation is limited to that position only.
Q: What does “Multi-Asset Collateral” mean?
A: Multi-Asset Collateral allows you to use more than one type of asset as collateral. For example, your BTC, ETH, USDT, USDC, and USDe balances can all contribute to your available margin value.
Each asset’s contribution is based on its Collateral Value Ratio, which determines how much of its value can be used as margin.
Q: Which assets can be used as collateral?
A: Supported assets currently include:
- BTC
- ETH
- USDe
- USDC
- USDT
- PUSDT
- Trading Bonus
Q: How is my collateral value calculated?
A: Collateral Value = Asset Value × Collateral Value Ratio
Each asset has its own value ratio. For example, BTC may have a higher ratio than USDC due to higher volatility.
Q: What is the Collateral Value Ratio?
A: The Collateral Value Ratio determines how much of an asset’s total value can be counted toward your margin balance. For example, if BTC has a ratio of 95%, only 95% of its market value contributes to your available collateral.
Q: What are the benefits of using Cross Margin with Multi-Asset Collateral?
A:
- Higher capital efficiency: Use multiple assets to support your positions.
- Reduced liquidation risk: Losses can be absorbed by the combined collateral pool.
- Seamless trading: You don’t need to transfer or convert assets manually.
- Integrated with Earn balances: Assets used in Earn may still support your margin under certain conditions.
Q: Can I still trade if my collateral includes USDe or Earn balances?
A: Yes. With Cross Margin, USDe and supported Earn balances can contribute to your margin. This allows you to trade without needing to move funds out of Earn, creating a seamless experience.
Q: How is the margin ratio calculated in Cross Margin?
A: Margin Ratio = Account Maintenance Margin / Account Equity
Q: What is Account Equity?
A: Account Equity represents the total value of your Cross Margin account, including all collateral assets and unrealized profits or losses from your open positions. It reflects the actual value you would have if all positions were closed at current market prices.
Q: How is Account Equity calculated?
A: Account Equity = Total Collateral Value + Unrealized P&L
Where:
- Total Collateral Value = Sum of all eligible assets × Collateral Value Ratio
- Unrealized P&L = Profit or loss from your open positions that have not yet been realized
Q: What happens if my margin ratio reaches 100%?
A: When your Margin Ratio reaches 100%, your positions will be liquidated to prevent further losses.
Q: Can I choose which asset to use as collateral?
A: No, Cross Margin automatically uses all eligible assets in your account as part of the shared collateral pool. You cannot manually assign specific assets for specific positions.
Q: What happens if one of my assets loses value?
A: If the market value of one collateral asset drops, your overall collateral value decreases, which can raise your margin ratio and increase liquidation risk. Monitoring your margin ratio regularly helps you manage this risk.
Q: How can I monitor my margin ratio?
A: You can view your Margin Ratio under the Cross Margin overview in your Perpetuals tab. It updates in real time and helps you understand your liquidation risk.
Q: How do I close a position under Cross Margin?
A: To close a position:
- Go to Open Positions.
- Select the trading pair.
- Tap Market to close the position, either fully or partially or Tap partial close to use the limit order closing function.
A confirmation message will appear, showing the quantity closed and price.
Q: Can I partially close a position?
A: Yes. You can choose to close a portion of your position under the Market tab. The remaining portion will stay open.
Q: How does liquidation work under Multi-Asset Collateral?
A: All margin balance is used to cover losses.
Q: What happens if I have a negative USDT balance?
A: If your USDT balance turns negative (due to losses or liquidation), your withdrawals will not be blocked entirely. However, your available withdrawal amount will be adjusted based on your remaining collateral value.
Q: Will Cross Margin affect my Spot or Earn balances?
A: Your Spot and Earn balances remain available, but their eligible value may now be considered as part of your Cross Margin collateral.
Q: Can I switch back to Isolated Margin?
A: Yes. Users may manually switch back to Isolated Margin if preferred. However, do note that all open position(s) and open order(s) must be closed before you are able to switch between trading modes.
Q: Where can I find more information about collateral values?
A: You can refer to the Collateral Value article in the Help Center for the latest details on supported assets.
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.