WOO X sets a collateral rate (discount) for each token based on a unique algorithm that factors in the liquidity and volatility of each token. Traders can efficiently deposit eligible tokens as collateral to trade in both margin and futures mode. (Note: Not all tokens on WOO X can be used as collateral. Please refer to ▶ Collateral ratio and IMR for Supported tokens – WOO X for more information.)
WOO X will calculate the actual collateral value for all eligible assets. As an added measure of risk management, traders can choose to disable tokens they wish to withhold from being used as collateral. The tokens that traders disable will not be counted toward the collateral contribution or used in trading. You can manage which eligible tokens can be used as collateral on the Margin & Futures page. Note: The page will only be available in Spot & Margin or Spot & Futures mode.
▶ How to manage my collateral?
Please go to the Margin & Futures page and find the “Collateral” tab below the settings.
On this page, you can find all eligible tokens and the information:
- Current collateralized tokens: The eligible tokens you can use as collateral. Note: Ineligible tokens will not count toward collateral as default and will be grayed out without a toggle. Traders can see the tooltips while managing the collateral.
- Balance: The available balance in your account.
- Collateral Ratio: The discount of tokens for being collateral.
- Est. Collateral Contribution: The buying power you can use under the calculation.
- Balance* Mark Price* Collateral Ratio= Est. Collateral Contribution
- The sorting logic is based on the collateral value: High > Low > Negative > Zero
- If the balance is negative, the collateral ratio will be 1 in the calculation and the Est. Collateral Contribution will be negative too.
Traders can click “Manage Collateral” and see available tokens on the list. You can use the toggle switch to enable or disable the token’s permission to be used as collateral. By default, all eligible tokens are included as collateral.
Please note that USDT and USDC are mandatory for being collateral, and traders can not disable these two tokens.
▶ What will happen if I disable the token as collateral?
The system will first check your Margin ratio and available balance to see if there are any risks after you disable the token as collateral. You will be rejected once your Margin ratio is too low or your account is high risk. After disabling it, the system will automatically deduct the collateral contribution and update the margin ratio in your account.
Note: Disabled tokens will not be displayed in the current collateral allocation list and will be excluded from liquidation risk.