Calculation of Maintenance Margin Rate (MMR) in Multi-Assets Mode
The Multi-Assets Mode allows you to use other cryptocurrencies as assets for USDT-M Futures trading. In this mode, all cryptocurrencies are converted into USDT after applying a discount rate, and the total converted amount is used as the margin. The sum of the margin of all cryptocurrencies, after discounting, is called the multi-assets margin.
Multi-Assets Margin = Token A × Index Price × Corresponding Discount Rate + Token B × Index Price × Corresponding Discount Rate + ...
When the MMR in the USDT-M Futures account is ≥ 100%, position reduction or liquidation occurs.
MMR = ∑Total Maintenance Margin / Total Margin × 100%, where the Total Margin is the multi-assets margin.
Where
Debt = min(0, wallet balance of the token), and in the USDT-M Multi-Assets Mode, only USDT will generate debt.
Note: In the USDT-M Multi-Assets Mode, if position reduction or liquidation occurs while you have debt, the system will automatically convert other margin assets into USDT to reduce risk and better protect your positions.
USDT-M Futures Risk Control Process
When MMR reaches 100%, the risk control process is triggered:
- Cancel all orders
- Netting of long and short positions
- Reduce position tiers to lower risk
- Before lowering the tier, the system will convert non-USDT tokens to USDT based on the conversion rates of each tier, from low to high. The conversion will be done one tier at a time until the MMR is less than 100%. Once the MMR is less than 100% after the conversion, the tier reduction process will stop;
- Liquidation
- If all positions are at the first tier and MMR is still greater than 100%, liquidation will occur.
- If only debt remains and all other tokens are at the first tier of conversion rate, liquidation will occur. The system will convert other tokens into USDT to repay the debt. After the debt is repaid, any remaining debt that maintains margin will be transferred to the U-based Multi-Assets Mode debt risk fund. If the account undergoes a margin call after the debt is repaid, the debt risk fund will compensate for the shortfall.
Debt Risk Control in USDT-M Futures Multi-Assets Mode
When the user's debt in the multi-assets margin exceeds their individual debt limit, loan risk control will be triggered, and the system will automatically convert other tokens into USDT to repay the debt and reduce the risk.
- Warning: The system will notify the user when their debt reaches 85% of the limit.
- Debt repayment through conversion: When the user's debt exceeds the limit, the system will automatically convert other tokens into USDT to repay the debt, reducing the debt to 70% of the personal limit.
Please be aware of the debt risk and add margin or manually convert other tokens to USDT in time to reduce debt risk.