Collateral is used when borrowing assets on WOO X. You are borrowing assets when trading with leverage or shorting a position.
Collateral ratio
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
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
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).
| Balance |
Interest(USDT)
|
Total Collateral
|
Pending order(BTC/USDT)
|
Adjusted Collateral
|
|
| BTC | USDT | ||||
| 1 | 100 | 5 | 8,595 | 0 | 8,595 |
| 0 | 10,100 | 5 | 10,095 | 0 | 10,095 |
| -1 | 10,100 | 5 | 95 | 0 | 95 |
| 1 | -5,000 | 5 | 3,495 | 0 | 3,495 |
| 1 | 100 | 5 | 8,595 | -1/10,100 | 95 |
| 0 | 200 | 5 | 195 | 1/9,900 | 195 |
| 0 | 10,100 | 5 | 10,095 | -1/10,100 | 1,595 |