Portfolio Margin Mode: Unified Margin Trading (Risk Unit Integration)

Portfolio Margin Mode enables seamless trading across spot, margin, perpetual swaps, expiry futures, and options within a single account. It employs a risk-based model to determine margin requirements by consolidating positions across all instruments under shared risk units. This approach optimizes capital efficiency while minimizing margin obligations through cross-position hedging.

Key Benefits of Portfolio Margin Mode

1. Capital Efficiency

   • Reduced margin requirements by netting offsetting positions within the same risk unit.
   • Unified collateral pool accepts multiple cryptocurrencies valued in USD equivalents.

2. Cross-Instrument Hedging

   • Spot assets are automatically integrated into risk units for margin calculations.
   • Enables dynamic hedging between spot and derivatives (e.g., ETH spot vs. ETH futures).

3. Simplified Risk Management

   • Aggregates positions under shared underlying assets (e.g., ETH-USDT, ETH-USDC, ETH-USD).
   • Real-time margin adjustments based on portfolio risk exposure.

Eligibility Criteria

To activate Portfolio Margin Mode, users must:

• Maintain a minimum net equity of $10,000 USD equivalent.
• Acknowledge understanding of the mode’s mechanics via platform disclosure.

How Risk Unit Integration Works

Risk Unit Merging Example: ETH

👉 Explore ETH margin strategies

Margin Calculation Methodology

Core Components

1. Maintenance Margin Requirement (MMR)

   • Calculated per risk unit using worst-case scenario stress tests.
   • Factors: Price shocks, volatility changes, basis risk, and stablecoin depegging risk.

2. Initial Margin Requirement (IMR)

   • Derived as: IMR = 1.3 × MMR (Derivatives) + MMR (Borrowing).

Key Formulas

• Derivatives MMR = Max(Spot shock + Basis risk + Vega risk, Adjusted minimum charge).
• Borrowing MMR = Potential borrowing amount × Margin discount rate.

FAQs

How does automatic borrowing work?

In auto-borrow mode:

• Users can short assets not held in their account if net equity suffices.
• Borrowing potential = Actual borrowings (margin loans, options) + Virtual borrowings (open positions).

What triggers liquidation?

Liquidation occurs when:

• Margin level ≤ 100%.
  Process includes dynamic delta hedging (DDH) and position reduction prioritized by risk exposure.

How are spot assets used for margin?

Spot holdings are automatically collateralized when:

• Their delta offsets derivatives positions (e.g., holding ETH spot while shorting ETH futures).

👉 Optimize your margin setup

Appendix: Risk Parameters

MR1: Price Shock Scenarios

MR9: Stablecoin Depegging Risk

Covers USDT/USDC/USD dislocations with tiered fees based on depeg severity (0.5%–40%).

Note: All parameters are subject to market conditions. For real-time rates, refer to the discount rate table.