Calculation of Maintenance Margin RateRatio (MMRMR) in Multi-Assets Mode
The Multi-Assets Mode allows you to use other cryptocurrencies as margin assets for USDT-M Futures trading. In this mode, alleach cryptocurrenciescryptocurrency areis convertedvalued intoin USDT after applying athe applicable discount rate, and the total converted amount is used as the margin. The sum of the discounted values eligible for inclusion as margin of all cryptocurrencies, after discounting, is called the multi-assets margin.
Multi-Assets Margin = Eligible Balance of Token A × Index Price × CorrespondingApplicable Discount Rate + Eligible Balance of Token B × Index Price × CorrespondingApplicable Discount Rate + ...
When the MMRMargin inRatio (MR) of the USDT-M Futures account isreaches ≥or exceeds 100%, the system will trigger the risk control process. The system will apply measures in sequence, including order cancellation, position netting, asset conversion and position tier reduction. If these measures do not bring MR below 100%, further position reduction or forced liquidation occursmay occur.
MMRMR = ∑Total Maintenance Margin /for Cross-Margin Positions ÷ Total Cross Margin × 100%, where the Total Margin is the multi-assets margin.
Where:
Debt = minmax(0, −wallet balance of the token). For example, anda inUSDT wallet balance of −1,000 USDT represents debt of 1,000 USDT. In the USDT-M Multi-Assets Mode, only USDT will generate debt.
Note: InMR is an account-level risk indicator. Maintenance Margin Rate (MMR) is a parameter applicable to a particular position or risk tier and used to calculate the USDT-Mmaintenance Multi-Assetsmargin Mode,requirement. ifThey positionare reductiondifferent orconcepts. liquidationIf occursthe whileaccount youhas haveU debt, the system willmay automatically convert other margin assets into USDT without obtaining further consent from you, to reduce riskdebt and betteraccount protect your positionsrisk.
USDT-M Futures Risk Control Process
When MMRMR reaches or exceeds 100%, the system will apply the following risk control processmeasures isin triggeredsequence:
1、. Cancel all orders.
2、Netting. ofNet long and short positions.
3、Reduce. Convert assets and, where necessary, reduce position tiers or positions to lower account risk.
Before lowering theposition tiertiers, the system will convert the relevant non-USDT tokensassets tointo USDT based on theone conversion rates of each tier, from low to high. The conversion will be done one tier at a time, untilstarting thewith MMRtiers iswith lesslower thanconversion rates. The system will recalculate MR after each conversion tier. If MR falls below 100%. Once the MMR is less than 100% after the conversion, the tier reduction processsystem will stop; further tier or position reduction measures.
4、Liquidation. Forced liquidation.
If all positions arehave atbeen reduced to the first tier and MMR isMR still greaterreaches thanor exceeds 100%, liquidationthe system will occurcarry out forced liquidation.
If only debt remains and, all other tokens are at the first conversion tier ofand conversionMR ratestill reaches or exceeds 100%, liquidation will occur. Thethe system will trigger debt liquidation and convert other tokens into USDT to repay the debt. After the debt is repaidrepayment, any remaining debt that maintainsmaintenance margin calculated under the applicable rules will be transferred to the UUSDT-basedM Multi-Assets Mode debt risk fund. If the account undergoeshas a marginnegative callequity after the debt is repaidshortfall, the debt risk fund will compensate forhandle the shortfall in accordance with the applicable platform rules.
Debt Risk Control in USDT-M Futures Multi-Assets Mode
When theyour user'sU debt in the multi-assets margin exceeds theiryour individual debt limit, loanthe system will trigger debt risk control will be triggered, and the system willmay automatically convert other tokensmargin assets into USDT to repay the debt and reduce theaccount risk.
1、. Warning: TheWhen system will notify the user when theiryour debt amount reaches 85% of your individual debt limit, the limitsystem will send you a debt risk notification.
2、Debt. Automatic conversion for repayment through conversion: When the user'syour debt amount exceeds theyour individual debt limit, the system will automatically convert other tokensmargin assets into USDT to repay thedebt debt, reducinguntil the debt amount falls to 70% or less of theyour personalindividual debt limit.
3、Please. beMonitor aware of theyour debt risklevel and promptly add available margin or manually convert other tokens tointo USDT in time to reduce debt risk.
Risk Disclosure and Disclaimer
This article isdoes not intended to provideconstitute:
(i) investment advice or investment recommendations;
(ii) an offer, invitation, or solicitation to buy, sell, or hold digital assets; or
(iii) financial, accounting, legal, or tax advice.
Digital
Multi-Assets Mode involves risks associated with asset valuation, adjustments to discount rates and risk parameters, automatic conversion, tier reduction, position reduction and forced liquidation. Changes in market prices, discount rates, maintenance margin requirements and other risk parameters may cause your MR to rise rapidly and trigger automatic risk control measures. The execution price of an automatic conversion may differ from the price you observe in the market, and conversion may involve spreads, fees or asset losses.
Holding or trading digital assets, including stablecoins and NFTs, carryinvolves significant risk and price volatility. EvaluateCarefully assess whether trading or holding digital assets is appropriate for your financial situation. Seek guidance from yourindependent legal, tax, or investment adviseradvice regardingfor your specificparticular circumstances.
Bitunix assumes no responsibility for any investment outcomes. You are solely responsible for understanding and complying with all applicable localthe laws and regulations applicable in your jurisdiction.