Collateral is used when borrowing assets on WOO X. You are borrowing assets when trading with leverage or shorting a position.
WOO X will set a collateral rate (discount) for each token based on the liquidity and volatility of each token into reference.
Please see ▶ Collateral ratio.
Total collateral is the total collateral value based on the spot holdings and interest.
It’s calculated as (holding + interest) * mark price * discount, if holding + interest >= 0, discount = collateral ratio; if holding + interest < 0, discount = 1.
Adjusted collateral is the total collateral value with pending orders taken into account.
It’s calculated as (holding + interest + pending short quantity) * mark price * discount. If holding + interest + pending short quantity >=0, discount = collateral ratio; if holding + interest + pending short quantity < 0, discount = 1.
For example: Here are some scenarios if the BTC price is 10,000 $USDT with a collateral ratio of 0.85 (USDT’s collateral ratio is 1).