What is Multi-Asset Collateral?

What is Multi-Asset Collateral?
Multi-asset collateral enables you to use both fiat and 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 into different currencies for margin.

Crypto Asset Margin Calculation

BTSE 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. For details, please refer to this page.
    *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

Fiat Margin Calculation

For fiat margin, we first convert your fiat balance to a USD margin value using the current “Client Buy (USD)” exchange rate found on the Exchange Rate Page; we then use the current USDT/USD exchange rate to arrive at a USDT margin value. The latter exchange rate is determined by rates utilized by other major exchanges.  All the exchange rates will be updated multiple times per day. For the latest exchange rates, please refer to the Exchange Rate Page.

Example: If you use 1000 AED as margin when the Client Buy exchange rate is 1AED:3.6840 USD (see table below), and the USDT/USD exchange rate is 1:1, your USDT margin value = 1000 / 3.6840 / 1 = 271.44 USDT. 

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. For detailed instructions, visit the FAQ page. For more details, please refer to this FAQ page.

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