Margin Level and Margin Call
Margin trading is a feature that allows traders to use leverage to increase their potential returns on positions. At our platform, we use the Margin Level to evaluate the risk level of your Margin Account.
Here's how the Margin Level is calculated for Cross Margin trading:
Users participating in Margin Loans may use the net assets in their Cross Margin Accounts as collateral. The digital assets in any other accounts are not included in the margin for Cross Margin trading.
The Margin Level of the Cross Margin Account is calculated using the following formula:
Margin Level = Total Asset Value of the Cross Margin Account / (Total Liabilities + Outstanding Interest)
Where:
Total Asset Value of the Cross Margin Account = Current Total Market Value of All Digital Assets in the Cross Margin Account
Total Liabilities = Current Total Market Value of All Outstanding Margin Loans in the Cross Margin Account
Outstanding Interest = Amount of Each Margin Loan * Loan Time (in hours, by the time of the calculation) * Hourly Interest Rate - Deduction/Paid Interest
3. The Margin Level determines the available actions you can take with your Margin Account:
Leverage 3x: When your Margin Level is greater than 2, you can trade, borrow, and transfer excess assets to the Spot Wallet.
Margin Level between 1.5 and 2: You can trade and borrow, but you cannot transfer funds out of your Margin Account.
Margin Level between 1.3 and 1.5: You can trade, but you cannot borrow or transfer funds out of your Margin Account.
Margin Level between 1.1 and 1.3: A margin call will be triggered, and you will be informed through email, SMS, and website notifications to add more collateral (transfer in more collateral assets) to avoid liquidation. After the first notification, you will receive a notification every 24 hours.
Margin Level less than or equal to 1.1: The liquidation engine will be triggered, and all your assets will be liquidated to pay back the interest and loan. You will be informed through email, SMS, and website notifications.
Please note that the Platform is not responsible for message delivery failure caused by external factors, such as local restrictions, service provider policies, and device issues
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