BIT calculates the total USD collateral of a unified margin (UM) account based on currency haircut ratios*. The higher the haircut ratio of a currency, the lower the conversion rate of that currency as collateral.
* Which are measured against USD
Based on the risk profile of each currency, BIT classifies them into different tiers, click here for more information
Example:
Assuming that the assets of user A's account are as follows, and the BCH haircut ratio is 5%, then when the user's BCH equity is 100 and the USD index price is 300, the effective collateral value is 28,500 USD.
Currency | Quantity/Equity | Currency Haircut Ratio | USD Index Price | Discounted Collateral in USD |
BTC | 3.136088934 | 0.02 | 37496.76318 | 115241.3204 |
FLOKI | 14000 | 1 | 0.000032118265 | 0 |
IOTX | 5 | 1 | 0.02507838032 | 0 |
PEPE | 100000 | 1 | 0.000001109749128 | 0 |
RSS3 | 4 | 1 | 0.1497739099 | 0 |
USDT | 347974.9709 | 0.001 | 1.000296667 | 347730.1252 |
Total: 462971.4456
The collateral calculation formula for UM is as follows:
3.136088934×37496.76318×(1−0.02)+34974.9709×1.000296667×(1−0.01)=462971.4456
The remaining haircut is valued at zero after a 10% discount.