Multi-asset collateral enables you to use your cryptocurrency assets as margin collateral for futures trading, giving you more flexibility. This reduces risk during volatile markets, and makes it so users don’t have to constantly convert assets for margin.
Crypto Asset Margin Calculation
BTZO calculates the USDT margin value of your cryptocurrencies based on average spot prices from major exchanges, adjusted for market liquidity and risk.
Average spot prices are updated frequently, so you may see your margin balance change rapidly.
Collateral Ratios (Haircut), which can reduce the USDT conversion value by 0% - 50%, can vary with market volatility.
*Collateral Ratios (Haircut) are subject to change, depending on market volatility.
When you have multiple types of assets in your futures wallet:
- The Realized Loss (the final loss) of the position will be deducted according to factors such as the assets’ liquidity, risk and other reasons. Typically, deductions are first made in USDT.
- The Realized P&L (profit and loss) will be calculated based on the settlement currency you choose, with USDT being the default.
If you choose USDT as your settlement currency, your P&L will be settled in USDT
When you choose other tokens as your settlement currency:
The Profit/Loss amount of the token you settle in = USDT Value of Realized PnL / [Average Spot Liquidity Mid Price x (1 + Haircut%)]
Example: When a position is closed with a realized P&L of 1,000 USDT with BTC chosen as the settlement currency, and the liquidity mid price of BTC is 40,000 USDT, the P&L in BTC will be 1000 / [40000 x (1 + 1%)] = 0.02475248 BTC
How to Use Multi-Asset Collateral
To use multi-asset collateral, transfer assets from your Spot to Futures wallet by clicking the 'Transfer' button on the wallet page.