Benefits of Trading USDⓈ-Margined Futures in Multi-Assets Mode

Under the Multi-Assets Mode, you can trade USDⓈ-Margined Futures contracts with a wide variety of margin assets besides USDT. For example, you can use BTC, ETH, BNB, etc. as margin assets to maximize your capital efficiency and enjoy the following benefits.

Portfolio diversification and capital efficiency

Access to a wider range of collaterals

When you trade USDⓈ-Margined Futures contracts under the Single-Asset Mode, you need to allocate significant portions of your portfolio into a specific stable coin to open positions.

Under the Multi-Assets Mode, your margin are shared across USDT-margined and other eligible coins can be used as collateral in the USDⓈ-M Futures Wallet. This allows for asset diversification, more flexibility, and better capital efficiency.

The Multi-Assets Mode supports BTC, ETH, BNB, XRP, ADA, DOT, SOL, and USDT as USDⓈ-margined futures collateral.

Flexibly collateralize your USDⓈ-M Futures positions using both stablecoins

When trading in the Single-Assets Mode, you are required to supply collateral in USDT, which is a stablecoin that is pegged to the US dollar. This means that the value of 1 USDT is supposed to equal 1 US dollar.

If you have multiple positions in different Margined Futures contracts, you will need to allocate your collateral value across the respective stablecoins. For example, if you have positions in BTC-Margined Futures and ETH-Margined Futures, you will need to allocate a certain portion of your collateral value in USDT for each of these positions.

Alternatively, you can also reallocate the profits made on your Margined Futures positions to collateralize your USDT-Margined Futures positions (and vice versa). This means that if you make a profit on your BTC-Margined Futures position, you can use a portion of that profit to collateralize your USDT-Margined Futures position, and vice versa.

The goal of this collateralization process is to ensure that you have sufficient funds to cover any potential losses in your positions, as well as to meet the margin requirements set by the exchange.

Trading with the Multi-Assets Mode removes this constraint, as both stablecoins held in the USDⓈ-M Futures Wallet are jointly accounted for in the margin calculation. Furthermore, profits arising from USDT margined futures positions will be automatically hedged against losing positions, providing more flexibility to maintain the margin requirements.

Arbitrage USDT markets

Additionally, the shared margin feature allows you to arbitrage between the USDT markets without the need to maintain multiple accounts or margin. You can deposit margin in USDT and use the same margin asset to open positions in both markets, making it an ideal product for long-term traders, hedgers, and arbitrageurs.

Higher capital utilization and lower trading fees

USDT holders can leverage their assets to trade USDT-M Futures contracts

USDT, a regulated stablecoin backed by fiat currency and pegged to the U.S. dollar at a 1:1 ratio, offers a quick and widely accepted means of exchange, store of value, and payment method within the global crypto ecosystem. As a USDT holder, you can leverage your assets to trade USDT-M Futures contracts under the Multi-Assets Mode, where USDT can be used as collateral for all USDT-M Futures contracts (and vice versa). This enables you to gain exposure to USDT-M Futures contracts while utilizing your USDT assets to their fullest potential.