1. General Rules
1.1 To regulate margin trading and margin borrowing of cryptocurrencies, maintain market order and protect the legitimate rights and interest of investors, Gate sets the following rules based on the principles of fairness and transparency.
1.2 These rules are the benchmarks of Gate’s margin trading. Investors’ actions on Gate, including borrowing and trading, etc. must be in compliance with these rules.
1.3 Margin borrowing and margin trading on Gate need to conform to these rules. Any matters that are not specified in these rules shall comply with the User Agreement and other rules.
2. Margin
2.1 Spot Margin trading uses the assets in the spot account as margin.
2.2 Gate gives respective adjustment factors to different coins based on their liquidity. To manage risks, the real-time spot index prices and respective adjustment factors are used to calculate the USD value of Account Margin Balance.
2.3 To ensure the security of assets, Gate has the rights to adjust the adjustment factors of different coins. The announcements on our official website shall prevail.
2.4 To control risks, Gate imposes limits on the loan amount of a coin and we have the right to adjust this amount based on the circumstances.
3. Borrowing Rules
3.1 The maximum borrowable in spot margin trading refers to the upper limit of the borrowable amount of one trading pair for a user. Our platform calculates users’ maximum borrowable based on the user’s available margin and our risk control mechanisms and, etc.
Maximum Borrowable = Min (Account Available Margin / Initial Margin Level of the Coin / Index Price, Maximum Loan for the Coin - Liabilities)
For more details, please go to Spot Margin Trading - Terminology
3.2 Interest calculation and deduction are done on the hour after users successfully borrow funds. There’s no fixed loan term and users can borrow and repay any time. The system will update the interest rate and settle interest on an hourly basis. Please pay attention to risks, repay loans or add margin in time to avoid unnecessary losses.
3.3 Auto-borrow rules: If the available balance in your spot account is inadequate to place an order, the system will auto-borrow the funds you need. Interest calculation and deduction are done on the hour after users successfully borrow funds.
3.4 To ensure the security of assets, Gate has the rights to adjust the types of coins available as margin. The announcements on our official website shall prevail.
You can click “View Interest Rate Details” in the margin trading panel to check the borrow factors and adjustment factors.
4. Interest Calculation Rules
4.1 Interest is calculated based on the actual loan amount in spot margin trading within the Unified Account, USDT negative balance in futures trading, USDT negative balance caused by interest deduction, unrealized PNL of USDT in futures positions.
For coins other than USDT, Interest = Loan Amount x Hourly Interest Rate x (1+18%)
For USDT, Interest = (Loan Amount + abs(Negative Balance + Futures Unrealized PNL)) x Hourly Interest Rate x (1+18%)
In addition, there’s an interest-free quota of 30000 USDT, which is only applicable when the futures unrealized PNL is negative and its absolute value is no greater than 30000 USDT. However, once the absolute value of the negative futures unrealized PNL is over 30000 USDT, the interest-free quota is no longer applicable and interest will be charged on all the absolute value.
Note: Loan amount is the actual loan amount on the hour. Hourly interest rate is the actual interest rate on the hour, the hourly lending rate in Lend & Earn. A 18% of the hourly lending rate will be charged, which enjoys a discount off if you are a user with VIP tier higher than zero. For more information, please go to the Fee page.
4.2 The interest rate is dynamic based on market conditions and is updated every hour on the hour.
5. Repayment Rules
5.1 Users can repay any time. Both partial and full repayment are supported. After successful repayment, the liabilities will be recalculated and used for the interest calculation and deduction for the next hour.
5.2 Assets used to repay the loan must be consistent with the borrowed assets. Therefore, users must ensure that they have enough available balance of the assets they have borrowed when they repay the loan.
5.3 Auto-repayment Rules: our system will auto-repay the loan with the assets received by filled orders with a reverse direction to the borrowing order in margin trading. Auto-repayment will only be executed after the order is totally filled.
6. Risk Control Mechanism
6.1 Once you have enabled spot margin trading, only assets in the spot account will be used as margin. Assets of other accounts will not be affected.
6.2 The margin level of the account will be calculated and monitored in real time, and the system will perform respective risk control measures based on the Account Initial Margin Level and Account Maintenance Margin Level. For more details about the calculation of the margin levels, please go to Spot Margin Trading - Terminology.
6.3 Risk Control Mechanism
Auto-Cancel: When the Account Initial Margin Level is below 100%, the system will auto-cancel spot open orders to ensure more margin is available.
Forced Repayment： When the Account Maintenance Margin Level is no more than 110%, the system will repay the loans with available funds to ensure more margin is available. Only the same assets as the borrowed assets in the account will be used for repayment. Other assets will not be affected.
Liquidation： When the Account Maintenance Margin Level is below 100%, the system will trigger the liquidation process to lower the risk level of the account.
For more information about the risk control mechanism, please go to Spot Margin Trading - Risk Control Mechanism.
6.4 Users should pay close attention to the margin levels of your account and adjust positions accordingly to manage risks. All losses caused by liquidation shall be borne by the users themselves, including but not limited to: losses caused by a plunge of Account Maintenance Margin Level from the alert level to the liquidation level in a short time due to sharp price fluctuations.
6.5 Gate adopts smart management of margin trading and risks involved. When certain indicators raise alerts, our system will perform actions to avoid greater risks, including but not limited to: disabling transfer, disabling going long or going short, disabling margin trading and liquidation.
6.6 Gate takes measures according to the total market cap of the loans in margin trading. When the total loans borrowed in the platform reach the set maximum loan amount, the system will inactivate margin borrowing until the total market cap is below the maximum loan amount.
6.7 Gate will adjust the total assets value, maximum individual loan amount, and the total loan amount on the platform based on market conditions and risks.
Gate reserves the rights of interpretation of these rules.
