Auto-Exchange in Multi-Assets Mode

Auto-Exchange is a mechanism to ensure that the USDT balances in the USDⓈ-M Futures Wallet do not fall below a certain threshold.

When Auto-Exchange is triggered, all positive balance assets under the USDⓈ-Margined Futures Wallet are automatically converted at market price by the Auto-Exchange service engine to cover the corresponding USDT deficit.

When will Auto-Exchange be triggered in the Multi-Assets Mode?

Under the Multi-Assets Mode, Auto-Exchange will happen under three circumstances:

1. When the wallet balance is not enough to offset the commission that needs to be paid to the platform, such as the service charge, it will be automatically exchanged.

2. In case of liquidation, Auto-Exchange will be immediately triggered if the USDT balance in the USDⓈ-M Futures Wallet is insufficient to cover the deficit.

3. When you have a negative balance in your USDⓈ-M Futures Wallet with no existing positions or open orders, the system will continuously calculate the LTV (Loan-To-Value) ratio and trigger Auto-Exchange when LTV ≥ 1.

Note: LTV = abs(∑negative asset WalletBalance in USD value * (1 + Auto-Exchange Haircut)) / ∑positive asset WalletBalance in USD value * (1 - Auto-Exchange Haircut)

When the balance of USDT in your USD Ⓢ - M futures wallet is not negative, and the balance of USD Ⓢ - Targeted Future Wallet is greater than the required capital cost, automatic exchange will not be conducted.

Suppose the USDT Wallet balance is 0. In that case, other assets in the USDⓈ-Margined Futures Wallet will be converted to USDT to cover the deficit, deducting the corresponding margin assets amount.

Auto-Exchange can help you balance your account and increase the utilization rate of funds in case of losses.

Examples of Auto-Exchange

When trading in the multi asset mode, the BTC balance in your USD margin futures wallet is positive and the USDT balance is 0.

If you incur any costs that result in an automatic exchange, such as closing losses or opening fees, the following scenario may apply. Let's say you have a BTC balance of 1 and the BTC price is currently 10,000. If the expense demand is 500 USDT, 0.05 BTC will be automatically exchanged for 500 USDT to cover the cost, leaving you with a remaining balance of 0.95 BTC.

What are the Auto-Exchange haircut rates?

While there are no fees for Auto-Exchange, The current platform also not sets the mortgage rate, which will be converted according to the real-time price 1:1

To avoid triggering automatic conversion, you can convert or transfer the margin assets to USD Ⓢ - M futures wallet to maintain the negative balance below the threshold of - $10000. If you do not have any open positions or open positions, and your USD Ⓢ - M contract wallet suffers losses, we suggest you exchange or transfer sufficient margin assets to USD Ⓢ - M contract wallet in time to prevent losses. Account LTV will not exceed 1, which will trigger automatic exchange.

To reduce the risk, Currency Security may temporarily adjust the automatic exchange threshold and automatically perform the exchange. You may notice that the balance of an asset in your USD Ⓢ - M contract wallet is negative. However, this does not necessarily mean that your USD Ⓢ - M futures wallet balance is in deficit.