Glossary of USDT-M Futures in multi-asset mode

Multi-asset mode:

USDT-m futures offer both single-asset margin mode and multi-asset margin mode. In single-asset margin mode, only USDT is used as margin, while in multi-asset margin mode, other coins can be used as margin for USDT-M Futures trading. In multi-assets margin mode, any coin can be used as margin, but its valuation will be adjusted based on the haircut rate for that coin. For example, if a coin's index price is 1000 USDT with a 95% haircut, only a valuation of 950 USDT will be counted as margin.

Account assets:

Coin assets in USDT-M Futures accounts does not include unrealized PnL. This refers to the remaining amount of that coin in the USDT-M Futures in multi-asset mode.

Multi-assets:

Multi-assets = (Equity of coin 1 × haircut of coin 1) + (Equity of coin 2 × haircut of coin 2) +...+ (Equity of coin N × haircut of coin N). Coin equity = Account assets of the coin in USDT + Unrealized PnL For example: If you have 0.1 BTC and 1000 USDT, assuming that the index price of BTC is 10,000 USDT, with a haircut of 90% for 1000 USDT worth of BTC, then the BTC equity is calculated as: 0.1 × 10,000 + 0 = 1000 USDT. The unrealized PnL of USDT-M Futures is calculated in USDT so the unrealized PnL of BTC is 0. Given that USDT equity is 1000 USDT, multi-assets will be calculated as: BTC equity × BTC haircut + USDT equity × USDT haircut = 900 + 1000 = 1900 USDT.

Available margin

Each coin has an available margin, which is calculated by the following formula: Available margin for the coin = account assets of the coin – frozen amount of the coin – margin used for the larger positions + unrealized PnL of the coin under cross margin mode. In USDT-M Futures in multi-asset mode, if you have 0.1 BTC, with a index price of 10,000 USDT and a haircut of 90%; your account assets for USDT are 1000 USDT, with the unrealized PnL of 200 USDT and position margin of 500 USDT; then the BTC available margin is calculated as: 0.1 × 1000 × 0.9 = 900 USDT. In USDT-M Futures, with USDT as the settlement coin, there are no PnL or frozen asset in BTC. The available margin for USDT is calculated as: 1000 + 200 – 500 = 700 USDT.

Available:

Margin available for opening a position = sum of available margin for all coins – initial margin for debt, where the initial margin for debt = absolute value of debt × initial margin rate for debt. The initial margin rate of debt is 10%, and subsequent updates to the rate will be announced in advance. For example, if you have a debt of 100 USDT, the initial margin for that debt is calculated as: 100 × 10% = 10 USDT.

Maintenance margin:

Maintenance margin A = position value of cross margin trading pair A x corresponding MMR + position value of cross margin trading pair B x corresponding MMR + ... + position value of cross margin trading pair N x corresponding MMR. Maintenance margin B = maintenance margin of the debt. Total maintenance margin = max (maintenance margin A, maintenance margin B). Maintenance margin of the debt = absolute value of the debt × maintenance margin rate of the debt, where the maintenance margin rate of the debt is 5%. Maintenance margin A = sum of the position values of all cross margin pairs × corresponding tiered maintenance margin rate. This calculation is the same as the classic USDT-M Futures.

Maintenance margin rate:

Maintenance margin rate = maintenance margin ÷ multi-assets

Haircut:

Refers to the haircut rate when converting the margin currency to USDT. For example: When a coin haircut is 90%, the value of the coin in USDT is calculated as: 90% × quantity of the coin × index price of the coin. The haircut for each coin are tiered and can be found in the futures trading rules.

Conversion rate:

An conversion rate will be applied during the convert. Converted amount = converted quantity × index price of the coin × conversion rate. The conversion rate is tiered, meaning the larger the amount, the lower the conversion rate.

There are three scenarios for conversion:

1. Switching from multi-asset mode to single-asset mode: If users have insufficient USDT, they can convert other coins in their USDT-M futures account to usdT.

2. Debt exceeding individual debt limit: When this occurs, risk control will be triggered, and other coins will be converted to repay the debt.

3. Risk of liquidation or partial liquidation: In such cases, other coins will be converted to repay the debt to reduce the risk.

Debt:

In the multi-assets mode, debts will be incurred when the assets of the coin are negative. Debt = min (0, coin equity), where coin equity = account assets + unrealized PnL. In USDT-M Futures in multi-assets mode, only USDT incurs debts.

Interest-free amount:

The interest-free amount is applicable to debts incurred by unrealized losses, calculated as: interest-free amount = min (abs (min (0, unrealized PnL)), interest-free limit). Interest-bearing amount = max (0, (debts – interest-free amount)), with the interest-free limit being 20,000 USDT.

Interest:

The interest-bearing amount is calculated by multiplying the corresponding interest rate, with interest charged every hour. At the time of charging interest, the interest-bearing amount will be evaluated for the charge. Debt details is retrieved at the start of each hour (UTC+8). For example, interest is charged once on the hour. At 8:00 AM (UTC+8), the interest amount to be paid is 100 USDT. Therefore, the 100 USDT debt will be charged.

Loan limit:

For a better risk control, the maximum limit is set on users' debt. Once this limit is exceeded, automatic conversion for repayment will be triggered. The current loan limit is 600,000 USDT. In the event that the debt is too high, a prior warning notification will be issued.

Repayment:

Repayment scenarios:

1. Active repayment: If a debt is incurred, users can use the 'Repay' button to pay it off or opt for conversion or transfer.

2. Automatic repayment will be triggered when the loan limit is reached.

3. Automatic repayment will also be activated when the liquidation risk control is triggered.

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