At the Dimension of Coin
| Term | Definition | Formula |
|---|---|---|
| Coin Balance | Balance of the coin in the account, which could be negative due to interest deduction. | / |
| Liabilities | Actual liabilities of the coin, including Borrowed and negative balance caused by interest deduction | Liabilities = Borrowed + ABS(Min(Coin Balance,0)) |
| Equity | Net assets of the coin, the assets with liabilities deducted that actual belongs to the user, which could be negative | Equity = Coin Balance - Borrowed |
| Occupied | Frozen assets occupied by spot open orders | / |
| Available Balance | Unfrozen part of the coin balance | Available Balance = Coin Balance - Occupied |
| Borrowable | Maximum funds you can borrow in this coin given the current Account Initial Margin Level | Min (Account Available Margin / Initial Margin Level of the Coin / Index Price, Maximum Loan for the Coin - Liabilities) |
| Spot Available Balance | Available balance of this coin in spot account | If you have enabled margin trading, Spot Available Balance = Available Balance + Borrowable; if you haven’t enabled margin trading, Spot Available Balance = Available Balance |
| Transferrable | The transferable amount of this coin | Transferable = Min (Account Available Margin / Coin Price, Available Balance of the Coin) |
At the Dimension of Account
| Term | Definition | Formula |
|---|---|---|
| Account Margin Balance | Sum of USD value of equities of different coins | Account Margin Balance = ∑(Positive Equity x Index Price x Adjustment Factor) + ∑(Negative Equity x Index Price)- Haircut Loss; More about Adjustment Factor: [https://www.gate.com/cross_margin/market_info |
| Account Initial Margin | Sum of USD value of initial margin of different coins | Account Initial Margin = ∑(Liabilities x Index Price x Initial Margin Level);The Initial Margin Level is determined by the leverage you set. Please check the details in the table below. |
| Account Maintenance Margin | Sum of USD value of maintenance margin of different coins | Account Maintenance Margin = ∑(Liabilities x Index Price x Maintenance Margin Level); The Maintenance Margin Level is set by the platform. Please check the details in the table below. |
| Account Initial Margin Level | When the Account Initial Margin Level <100%, the system will auto-cancel open orders to reduce risks. | Account Initial Margin Level = Account Margin Balance / Account Initial Margin |
| Account Maintenance Margin Level | When the Account Maintenance Margin Level <110%, the system will auto-repay the liabilities using the available funds. | Account Maintenance Margin Level = Account Margin Balance / Account Maintenance Margin |
| Account Available Margin | Available margin balance when the part of balance occupied by initial margin is deducted. | Account Available Margin = Account Margin Balance - Account Initial Margin |
Example
Supposing:
1 USDT = 1 USD, and the adjustment factor for USDT is 1.
1 BTC = 10000 USD, the adjustment factor for BTC is 1.
User A’s spot account has enabled spot margin trading and the leverage set is 3x. The account has open orders and no haircut loss. The assets status in the account is as follows:
| Coin | Coin Balance | Borrowed | Occupied |
|---|---|---|---|
| USDT | 450 | 100 | 50 |
| BTC | 0.02 | 0.02 | 0 |
Based on the above information, we can get the following calculation results:
| Coin Dimension | Equity = Coin Balance - Borrowed | Available Balance = Coin Balance - Occupied | Initial Margin = Equity x Index Price x Initial Margin Level | Maintenance Margin = Equity x Index Price x Maintenance Margin Level |
|---|---|---|---|---|
| USDT | 450 - 100 = 350 | 450 - 50 = 400 | 100 x 1 x 33% = 33 USD | 100 x 1 x 10% = 10 USD |
| BTC | 0.02 - 0.02 = 0 | 0.02 - 0 = 0.02 | 0.02 x 10000 x 33% = 66 USD | 0.02 x 10000 x 10% = 20 USD |
| Account Dimension | Calculation |
|---|---|
| Account Margin Balance = ∑(Positive Equity x Index Price x Adjustment Factor) + ∑(Negative Equity x Index Price)- Haircut Loss | 350 x 1 x 1 + 0 x 10000 x 1 = 350 USD |
| Account Initial Margin = ∑(Liabilities x Index Price x Initial Margin Level) | 33 + 66 = 99 USD |
| Account Maintenance Margin = ∑(Liabilities x Index Price x Maintenance Margin Level) | 10 + 20 = 30 USD |
| Account Available Margin = Account Margin Balance - Account Initial Margin | 350 - 99 = 251 USD |
| Account Initial Margin Level = Account Margin Balance / Account Initial Margin | 350 / 99 = 353.54% |
| Account Maintenance Margin Level = Account Margin Balance / Account Maintenance Margin | 350 / 30 = 1166.67% |
| Coin | Borrowable = Min (Account Available Margin / Initial Margin Level of the Coin / Index Price, Maximum Loan for the Coin - Liabilities) | Spot Available Balance = Available Balance + Borrowable |
|---|---|---|
| USDT | 251 / 33% / 1 = 760.6 | 400 + 760.6 = 1160.6 |
| BTC | 251 / 33% / 10000 = 0.76 | 0.02 + 0.76 = 0.78 |
Leverage and Margin Levels
| Leverage | Initial Margin Level | Maintenance Margin Level |
|---|---|---|
| 2 | 50% | 10% |
| 3 | 33% | 10% |
About Haircut Loss
Gate gives respective adjustment factors to different coins based on their liquidity to calculate their USD value based on the index prices. As the adjustment factors of different coins could be different, the Account Margin Balance could change after a trade. Haircut loss is the reduced amount of margin balance. After you place an order, the system will give an estimated haircut loss and include it into the calculation of the Account Margin Balance.
Haircut Loss of a Trade = Max (Pre-Trade Coin A Amount x Index Price x Adjustment Factor of Coin A - Post-Trade Coin B Amount x Index Price x Adjustment Factor of Coin B, 0)
Total Haircut Loss = ∑ (Haircut Loss)
Example:
Supposing:
Adjustment factor of USDT = 1, 1 USDT = 1 USD
Adjustment factor of GT = 1, 1 GT = 100 USD
Adjustment factor of DOGE = 0.9, 1 DOGE = 100 USD
User A placed an order to buy 1 DOGE with 1 GT in the DOGE/GT market, assets status in the account are as follows:
| Coin | Account Balance | Borrowed | Occupied |
|---|---|---|---|
| USDT | 200 | 300 | 0 |
| GT | 3 | 0 | 1 |
Based on the above information, haircut loss of this order = 1 x 100 x 1 - 1 x 100 x 0.9 = 10 USD
Account Margin Balance = (200 - 300) x 1 + 3 x 100 x 1 - 10 = 190 USD
After this order is filled, trading fee and interest neglected, the assets status in the account is as follows:
| Coin | Account Balance | Borrowed | Occupied |
|---|---|---|---|
| USDT | 200 | 300 | 0 |
| GT | 2 | 0 | 0 |
| DOGE | 1 | 0 | 0 |
Account Margin Balance = (200 - 300) x 1 + 2 x 100 x 1 + 1 x 100 x 0.9 = 190 USD
Account Margin Balance after the trade is 10 USD lower than the pre-trade one as the adjustment factor of DOGE is lower than GT.
When you are placing an order, the system will calculate the estimated haircut loss of this order, the change of equities of coins and the post-trade Account Margin Balance and Account Initial Margin Level. If it is estimated that the Account Margin Level will be lower than 100%, the system will stop the order and the order will fail.
Gate reserves the final right to interpret the product.
Disclaimer
The content provided herein is for reference and educational purposes only and does not constitute any financial, investment, trading, or legal advice, nor does it constitute an offer or solicitation to buy or sell any digital assets. Gate makes no express or implied representations or warranties regarding the accuracy, completeness, or timeliness of the information contained herein. Product features, interfaces, rules, and fee structures may be updated or adjusted at any time. Please refer to the latest announcements and the actual information displayed on the Gate platform for the most accurate details.
Digital asset investments involve significant risk, and prices may fluctuate substantially. You may lose the entire amount of your investment. Please make decisions cautiously based on your own financial situation and risk tolerance after fully understanding the associated risks. If necessary, you are advised to consult an independent professional financial or legal advisor.
For more information about potential risks, please refer to Gate's Risk Disclosure and User Agreement.
