USDT Contract Leverage and Margin

Coin8 contract provides full position and position by position mode

 

cross margin: all available balances in the contract account are used as the margin for all positions. Once compulsory position closing occurs, the whole account balance, that is, the margin, will be taken over. Please note that by default, the initial setting of all positions in Coin8 is "cross margin".

 

Position by position margin: assign part of the margin to a certain position to realize "special fund for special purpose". If the position bursts, the margin of the position will be lost at most. In this way, you can still increase or decrease the margin of this position.

 

When using position by position margin, you can adjust your leverage through the leverage slider in real time.

 

1.Initial margin rate

 

Coin8 supports highly leveraged trading through complex risk control engine and clearing model. We adopt the ladder risk limit model for risk control, and the leverage ratio depends on the position value. The larger the nominal value of the position, the lower the leverage ratio.

 

Initial margin ratio = 1 / leverage

 

Before opening a position, the user needs to adjust the leverage ratio by himself. The higher the leverage ratio is, the smaller the maximum position the user can open. For details, please pay attention to the introduction of risk limits.

 

If the user does not adjust the leverage ratio, Coin8 defaults to the cross position mode.

 

2.Maintenancemargin rate

 

The maintenance margin rate is not calculated according to the user adjusted leverage, but according to the different nominal values of the user's positions (nominal value = mark price x size of positions x contract value), which means that the maintenance margin rate is not affected by the leverage. The maintenance margin rate is calculated according to the risk limit ladder, and the increased size of position from one ladder to the next will not cause the leverage change of the original level. The larger the position, the higher the maintenance margin rate.

 

The maintenance margin will directly affect the price of forced closing. Therefore, we strongly recommend that users close their positions before the account margin drops to the maintenance margin level, so as to avoid being forced to close their positions.

 

3.Calculation of open position margin

 

Margin increment = order value * (1 / leverage + maximum platform rate)

 

Maximum platform rate = max [taker fee, maker fee] 2

 

 

4.Calculation of position margin

 

• Under normal circumstances (except for liquidation), the position margin will be released in proportion to the size of closed position, and the liquidation price will remain unchanged.

 

• Isolated margin, crossmarginloss (Through position) does not affect each other. If the order is made at a price even worse than the bankruptcy price, the actual leverage of the remaining position will increase

 

• In the case that the initial margin requirements are met forisolated margin and cross margin, in the position panel, it can be adjusted , leverage, add or reduce margin, and the position margin will be recalculated.