Margin Level and Margin Call

Margin trading is a feature that allows traders to use leverage to increase their potential returns on positions. At our platform, we use the Margin Level to evaluate the risk level of your Margin Account.

Here's how the Margin Level is calculated for Cross Margin trading:

1. Users participating in Margin Loans may use the net assets in their Cross Margin Accounts as collateral. The digital assets in any other accounts are not included in the margin for Cross Margin trading.

2. The Margin Level of the Cross Margin Account is calculated using the following formula:

• Margin Rate = Adjusted equity / (Maintenance margin + Fee of close position + Fee of working order)

Where:

• Adjusted Equity = Currency balance * Price * Conversion rate - Liabilities * Price - Estimated transaction fee for working orders + Position profit and loss * Conversion rate - Working order loss

• Maintenance Margin = sum(Maintenance margin of working order) + sum(Maintenance margin of current position) + sum(Maintenance margin of liabilities)

3. The Margin Level determines the available actions you can take with your Margin Account:

• Margin Rate between 1 and 3: A margin call will be triggered, and you will be informed through email, SMS to add more collateral (transfer in more collateral assets) to avoid liquidation. After the first notification, you will receive a notification every 1 hours.

• Margin ratio less than or equal to 1: The liquidation engine will be triggered, and most of your assets will be liquidated to repay losses, loans, interest, and fees. You will receive notifications via email or SMS.