Glossary of USDT-M Positions in Multi-Asset Mode

[Estimated reading time: 5 mins]

This glossary explains key terms and definitions for Bitget USDT-M Futures in multi-asset mode. It covers multi-asset margin, available and maintenance margins, debt and interest, conversion rates, loan limits, and repayment scenarios. Multi-asset mode allows using multiple coins as margin with adjusted valuations, helping traders manage positions efficiently while controlling risk.

Glossary of Terms

Multi-asset mode:

USDT-M Futures offer both single-asset margin mode and multi-asset margin mode.

• In single-asset margin mode, only USDT is used as margin.

• In multi-asset margin mode, other coins can be used as margin for USDT-M Futures trading.

In multi-assets margin mode, any coin can be used as margin, but its valuation will be adjusted based on the haircut rate for that coin. Example: If a coin's index price is 1000 USDT with a 95% haircut, only a valuation of 950 USDT will be counted as margin.

Account assets:

Coin assets in USDT-M Futures accounts do not include unrealized PnL. This refers to the remaining amount of that coin in the USDT-M Futures in multi-asset mode.

Multi-assets:

Multi-assets = (equity of coin 1 × haircut of coin 1) + (equity of coin 2 × haircut of coin 2) + ... + (equity of coin N × haircut of coin N)

Coin equity = account assets of the coin in USDT + unrealized PnL

Example:

• Holdings: 0.1 BTC and 1000 USDT

• BTC index price: 10,000 USDT, haircut 90%

• BTC equity = 0.1 × 10,000 + 0 = 1000 USDT

• Multi-assets = BTC equity × BTC haircut + USDT equity × USDT haircut = 900 + 1000 = 1900 USDT

Available margin:

Available margin for the coin = account assets of the coin – frozen amount of the coin – margin used for the larger positions + unrealized PnL of the coin under cross margin mode

Example:

• BTC: 0.1 BTC, index price 10,000 USDT, haircut 90% → BTC available margin = 0.1 × 1000 × 0.9 = 900 USDT

• USDT: Account assets 1000 USDT, unrealized PnL 200 USDT, position margin 500 USDT → Available margin = 1000 + 200 – 500 = 700 USDT

Available:

Margin available for opening a position = sum of available margin for all coins – initial margin for debt

Initial margin for debt = absolute value of debt × initial margin rate for debt

The initial margin rate of debt is 10%, and subsequent updates to the rate will be announced in advance.

Example: Debt = 100 USDT → Initial margin = 100 × 10% = 10 USDT

Maintenance margin:

Maintenance margin A = position value of cross margin trading pair A × corresponding MMR + position value of cross margin trading pair B × corresponding MMR + ... + position value of cross margin trading pair N × corresponding MMR

Maintenance margin B = maintenance margin of the debt

Total maintenance margin = max(maintenance margin A, maintenance margin B)

Maintenance margin of the debt = absolute value of the debt × maintenance margin rate of the debt

The maintenance margin rate of the debt is 5%. Maintenance margin A is the sum of the position values of all cross margin pairs × corresponding tiered maintenance margin rate. This calculation is the same as the classic USDT-M Futures.

Maintenance margin rate:

Maintenance margin rate = maintenance margin ÷ multi-assets

Haircut:

Refers to the haircut rate when converting the margin currency to USDT.

Example: When a coin haircut is 90%, the value of the coin in USDT is calculated as: 90% × quantity of the coin × index price of the coin. The haircuts for each coin are tiered and can be found in the futures trading rules.

Conversion rate:

A conversion rate will be applied during the conversion. Converted amount = converted quantity × index price of the coin × conversion rate. The conversion rate is tiered, meaning the larger the amount, the lower the conversion rate.

There are three scenarios for conversion:

1. Switching from multi-asset mode to single-asset mode: If users have insufficient USDT, they can convert other coins in their USDT-M futures account to USDT.

2. Debt exceeding individual debt limit: When this occurs, risk control will be triggered, and other coins will be converted to repay the debt.

3. Risk of liquidation or partial liquidation: In such cases, other coins will be converted to repay the debt to reduce the risk.

Debt:

In the multi-assets mode, debts will be incurred when the assets of the coin are negative.

Debt = min(0, coin equity), where coin equity = account assets + unrealized PnL.

For USDT-M Futures in multi-assets mode, only USDT incurs debts.

Interest-free amount:

The interest-free amount is applicable to debts incurred by unrealized losses, calculated as: Interest-free amount = min(abs(min(0, unrealized PnL)), interest-free limit).

Interest-bearing amount = max(0, (debts − interest-free amount)), with the interest-free limit being 20,000 USDT.

Interest:

The interest-bearing amount is calculated by multiplying the corresponding interest rate by the interest charged every hour. At the time of charging interest, the interest-bearing amount will be evaluated for the charge. Debt details are retrieved at the start of each hour (UTC+8).

Example: Interest is charged once an hour. At 8:00 AM (UTC+8), if the debt is 100 USDT, 100 USDT will be charged.

Loan limit:

For better risk control, the maximum limit is set on users' debt. Once this limit is exceeded, automatic conversion for repayment will be triggered.

• Current loan limit: 600,000 USDT

• Prior warning notifications will be issued if the debt is too high.

Repayment:

Repayment scenarios:

1. Active repayment: If a debt is incurred, users can use the Repay button to pay it off or opt for conversion or transfer.

2. Automatic repayment will be triggered when the loan limit is reached.

3. Automatic repayment will also be activated when the liquidation risk control is triggered.

Disclaimer and Risk Warning

All trading tutorials provided by Bitget are for educational purposes only and should not be considered financial advice. The strategies and examples shared are for illustrative purposes and may not reflect actual market conditions. Cryptocurrency trading involves significant risks, including the potential loss of your funds. Past performance does not guarantee future results. Always conduct thorough research and understand the risks involved. Bitget is not responsible for any trading decisions made by users.