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▶ Margin and Leverage

Support Staff
  • Updated on

▶ Collateral:

WOO X supports the cross-margin mechanisms for spot-margin and futures. Kindly note that all eligible assets will count towards collateral for your futures and margin positions. You can deposit cryptocurrencies as collateral, such as USDT, BTC, and ETH. WOO X defines the collateral ratio for each token, which represents the equivalent USDT value as your equity. Please see the complete info of collateral ratio from Collateral ratio.

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▶ Leverage:

The maximum amount of leverage available depends on the notional value of your position. The initial leverage is 10x by default. WOO X provides up to 20x leverage at the account level in Futures mode. Please adjust your leverage, positions, and collateral accordingly for risk controls. The Initial Margin calculations will be determined by the leverage you selected.

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▶ Margin Ratio:

The margin ratio defines your risk level of equity relating to exposure. A higher margin ratio will lead to a lower risk level. The default margin ratio is set to 1,000%, indicating you haven’t opened any position. The more positions you open, the lower your margin ratio is.

Note: If you have open positions in the future market, you are not allowed to change to spot-margin mode. Please close all futures positions to change to different trading modes.

▶ Explanation:

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  1. Est. Liq. Price: Estimated price at which your position will be liquidated. Prices are estimated based on multiple factors across all positions.
    • symbol.i_long-est.LP=mark_price-(collateral-maintenance margin)/size/(1-maintenance margin ratio)
    • symbol.i_short-est.LP= mark_price + (collateral-maintenance margin)/size/(1-maintenance margin ratio)
  2. PnL: The profits or losses of your position based on the mark price.
    •  (Side) Position Qty. * (future mark price - position entry price)
  3. Realized PnL: Realized profits or losses after closing the position.
    •  Position Qty.*（Average filled Price -  position average entry price）
  4. Notional: The position size in USDT value.
    • Position Qty. * Mark price
  5. Margin Ratio (MR): To measure your account risks.
    •  Total collateral/ Total position notional
  6. Collateral ratio (Discount): Token collateral value as a proportion of its equivalent USDT value. Token collateral value as a proportion of its equivalent USDT value.  Please view more complete information here.
  7. Initial Margin (IM):  symbol.i_open_notional*real_IMR
  8. Total Initial Margin (Total IM): Sum of the symbol.i_(open_notional * real_IMR)
  9. Initial Margin Ratio, Real IMR (IMR, Real-IMR): To measure if the account can execute the withdrawals or transfer funds. If your margin ratio drops to hit the Initial Margin ratio, you will not be able to open new futures positions.
    •  real-IMR = max (1/max_leverage, Imr-factor * (notional)^(5/6))
  10. Maintenance margin ratio (MMR): You need to maintain the minimum margin ratio to avoid getting liquidated. The larger the position, the higher the Maintenance Margin rate. Please note that the MMR will affect the liquidation.
    • symbol.i_real-MMR = max [3%, 0.6 * IMR-factor * (holding_notional)^(5/6) ]
  11. Futures IMR Factor: To calculate the available leverage in margin and threshold for large positions. The higher the position, the lower the actual leverage can be used. Please view more detailed information from IMR Factor and Threshold
  12. Total Collateral: Collateral value of all eligible assets in USDT terms. This calculation includes unrealized PnL and excludes the value of spot pending orders. 
    • Total Collateral = sum of token_i(balance*discount*mark_price)+un.PnL-sum of quote. Spot pending.k*(1-discount.k) 
  13. Free collateral: The amount of USDT you can withdraw or use for each account.
    • Free collateral = Total collateral - max(un.PnL,0) - total_IM 
  14. Total account value: Sum of token_i(balance*mark_price)+unrealized PnL

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