Using Dynamic Earn (YBT) as Collateral for Cross Margin

When you subscribe to Dynamic Earn on Flipster, your USDT is converted into a Yield-Bearing Token (YBT), IGNUSDT. This token increases in value over time as the underlying strategy generates yield. In Cross Margin mode, eligible YBTs such as IGNUSDT can also be used as collateral for your perpetual trading positions.

This article explains how YBT collateral works, how its value is calculated, and what users should be aware of when using Dynamic Earn assets for margin.

What Is YBT Collateral?

YBT collateral refers to your IGNUSDT holdings being counted as part of your total collateral balance in Cross Margin mode.
Because IGNUSDT reflects accumulated yield via NAV growth, it has a real-time USDT-equivalent value that can help support your margin requirements when trading perpetual contracts.

Benefits of Using YBT as Collateral

• Increases your available margin without moving funds out of Dynamic Earn

• Allows you to trade and earn yield simultaneously

• Provides a more flexible and efficient use of your assets on Flipster

How Collateral Value Is Calculated

Your collateral value is based on:

IGNUSDT amount × Current NAV × Collateral Factor

Where:

• IGNUSDT amount = number of YBTs you hold

• Current NAV = per-token value based on Dynamic Earn strategy performance

• Collateral Factor = risk-adjusted percentage applied (e.g., 90%, subject to platform settings)

The Collateral Factor ensures that only a portion of the YBT value is counted toward margin, balancing yield benefits with risk management.

How YBT Collateral Works in Cross Margin

When Cross Margin is enabled:

• Your IGNUSDT is automatically included in your total collateral balance

• Its collateral value supports:

  • Position maintenance margin

  • Opening new trades

  • Reducing liquidation risk

You do not need to manually transfer funds out of Dynamic Earn. As long as the YBT is eligible and remains in your account, it contributes to your collateral.

How NAV Affects Your Collateral

Because NAV fluctuates based on strategy performance:

• If NAV increases:

  • Collateral value increases

  • Margin health may improve

  • Liquidation price may improve slightly

• If NAV decreases:

  • Collateral value decreases

  • Margin tightens

  • Liquidation risk may increase

Monitoring your margin health is important, especially during periods of NAV volatility.

Redeeming YBT While Using Cross Margin

You can still redeem your IGNUSDT from Dynamic Earn and the processing amount can still be used as margin during the redemption process, but please note that:

• Trading still carries liquidation risk as the collateral ratio changes after the redemption transaction is complete.

  • Subscription: 100% → 85%

  • Redemption: 85% → 100%

Applicable for Instant and Standard Redemption Process.

Important Risks to Consider

• Collateral Volatility: YBT collateral value changes with NAV. Downward NAV movement may impact margin health.

• Liquidation Risk: If collateral value drops due to NAV changes or redemption, positions may be liquidated.

• Strategy Performance Risk: Poor Dynamic Earn strategy performance can reduce NAV, affecting collateral value.

• Unredeemed Collateral Dependency: If most of your collateral is in YBT, liquidity or NAV adjustments may influence your ability to support open trades.

Best Practices for Using YBT as Collateral

• Monitor your Margin Ratio regularly

• Avoid over-leveraging when NAV is volatile

• Keep a buffer of liquid USDT to prevent forced liquidation

• Redeem YBT only when you are certain your positions can maintain margin requirements

• Understand that the YBT value is not fixed and may change daily

Summary