Collateral on BitMake is calculated in USD value terms. We follow a multi-currency cross-margining methodology and thereby accept a variety of non-USD assets as collateral for derivatives and spot margin positions. The PnL is always settled in USD regardless of which type of collateral is used.
List of Non-USD Collateral
| Coin | Weight (total) | Weight (initial) | IMF factor |
| USD | 1 | 1 | 0 |
| SOL | 0.9 | 0.85 | 0.0004 |
| TRX | 0.9 | 0.85 | 0.00001 |
| XRP | 0.95 | 0.9 | 0.00002 |
| MATIC | 0.85 | 0.8 | 0.00004 |
| USDT | 0.975 | 0.95 | 0.00001 |
| ETH | 0.95 | 0.9 | 0.0004 |
| DOGE | 0.95 | 0.9 | 0.00002 |
| LTC | 0.95 | 0.9 | 0.0004 |
| AVAX | 0.9 | 0.85 | 0.0007 |
| FIL | 0.6 | 0.5 | 0.005 |
| BTC | 0.975 | 0.95 | 0.002 |
Definitions & Formulas
| Term | Definition | Formula |
| USD collateral | USD, and a selection of USD stablecoins that are valued 1:1 with USD. | Stablecoins valued 1:1 with USD: USDC, TUSD, USDP, BUSD. |
| Non-USD collateral | Alternative assets accepted as collateral. | See list of non-USD collateral accepted here. |
| Initial Weight | Factor used to determine the collateral value for the purpose of initial margin if spot margin is not enabled (i.e., opening new leverage positions) | See Non-USD collateral table above. |
| Total Weight | Factor used to determine the collateral value for the purpose of maintenance margin calculation and opening new positions if spot margin is enabled. | See Non-USD collateral table above. |
| IMF factor | Multiplier assigned to each asset on BitMake. It is set based on factors such as liquidity or market capitalization. | See Non-USD collateral table above. |
| Collateral Used | Total of collateral being used by all open derivatives or spot margin positions in the subaccount, as well as collateral tied up in open orders, including spot. | sum (Position1 Open Size Notional * Position1 IMF, Position2 Open Size Notional * Position2 IMF,...) + sum(Spot Order1 Size * Mark Price, Spot Order2 Size * Mark Price,...) |
| Free collateral | Total collateral available that can be used for opening new positions and withdrawn from the exchange, excluding collateral locked in open orders or open positions. | min(collateral, collateral + unrealized PNL) - (amount of collateral tied up in open orders) |
|
Collateral Weight |
Multiplier used to determine the total value of your collateral. | min (1.1 / [IMF Weight * {1.1 / Total Weight - 1} + 1] , 1.1 / [Spot Margin IMF Factor * sqrt{size} * IMF Weight + 1] ) If spot margin is enabled, Weight = Total Weight. Otherwise, Initial Weight. |
| Collateral Value | Collateral value of each asset in your inventory | For positive balances, the collateral value is calculated as follows: = Size * Mark Price * Collateral Weight For negative balances the collateral value is calculated as follows: = Size * Mark Price |
|
Total Account Collateral |
Sum of positive and negative collateral values | Sum(Collateral Value 1, Collateral Value 2,..) |
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