Collateral Weight
Each Master and Sub-account will be treated as a standalone wallet with its own margin balance, and eligible Spot assets in the wallets will be used as collateral toward the account’s margin balance.
Maximum Collateral Weight (MCW) is the maximum collateral weight applied to each asset. MCW = 0 means that the currency is not eligible to be collateral. MCW > 0 means that the currency is eligible to be collateral.
The actual Collateral Weight (CW) is a function of various risk parameters and is defined by the following formula. You can review the collateral weights of all Spot assets by going to Wallet from the Exchange Dashboard.
Please refer to the Margin Risk Parameters table published here for more information.
Wallet Balance Details and Key Terms
Wallet Balance | The USD value of all Spot assets held in your Wallet [Pro]. | ∑ Spot Assets Value |
Unrealised PnL | Unrealised profit and loss from your open positions before the next 1-hour session settlement. | Unrealised PnL = (Mark Price - Last Session Settlement Price) x Position Quantity |
Margin Balance | The USD value you possess to support all open positions and open orders in your Wallet. | Margin Balance = Wallet Balance - Non-eligible Collateral Balance - Collateral Haircut + Unrealised PnL - Fee Reserves |
Initial Margin | The Margin balance you have used / required to maintain all your open positions and open orders. | See Initial Margin Calculation following our Smart Cross Margin Policy |
Available Margin | The Margin balance you have available for you to open any new positions and orders. | Available Balance = Margin Balance - Initial Margin |
Maintenance Margin | The Margin balance required to keep your positions open and avoid Liquidation. | Maintenance Margin = 0.5 x Initial Margin |
Effective Leverage | The actual leverage of Positions against the Wallet’s entire Margin balance. | Effective Leverage = Total Position Value / Margin Balance |
Exposure Limit | The maximum exposure permitted for Derivatives instruments based on the maximum account leverage specified by the user. | Exposure = Derivatives Position Value + Order Value) x Instrument Exposure Limit Weight (this varies depending on the instrument underlying)
For maximum account leverage < 50x , Exposure limit = No Limit For maximum account leverage ≥ 50x , Exposure Limit = US$3,000,000 |
Other Terms
Collateral Weight | A weighted adjustment factor applied to collateral assets for their collateral value. The Collateral Weight is specific to each Spot asset (refer to the section above). | 0 < Collateral Weight ≤ 1 |
Eligible Collateral Balance | The USD value of all Spot assets that have a Collateral Weight greater than 0 | Eligible Collateral Balance = ∑ Eligible Collateral Asset Value = ∑ Spot Asset Value with Collateral Weight > 0 |
Non-eligible Collateral Balance | The USD value of all Spot assets which have a Collateral Weight equal to 0 | Non-eligible Collateral Balance = ∑ Non-eligible Collateral Asset Value = ∑ Spot Assets Value with Collateral Weight = 0 |
Collateral Haircut | The Collateral Weight adjusted balance deducted from your eligible collateral balance. | Collateral Haircut = ∑ Eligible Collateral Asset Value x (1- Collateral Weight)
Where Eligible Collateral Asset Value is positive only (i.e. if Eligible Collateral Asset Value < 0, then Collateral Weight = 1) |
Withdrawable Balance | The quantity of a specific asset you can withdraw from your Wallet.
| This does not include realised PnL, unless the open position related to such realised PnL has been settled and after the deduction of applicable fees relating to the closing of the open position. This also does not include assets locked up in staking or unfilled opened orders and initial margin requirements. |
Margin Rate
The Margin Rate is used to determine the Initial Margin requirement. It is defined by the maximum account leverage specified by the user, the risk parameters based on the product type (Perpetuals and Futures), and the exposure quantity following the formula below:
The same Margin Rate applies to positions and orders with the same expiry and underlying.
Risk Parameters | Definition |
Maximum Account Leverage (MAL) | A user defined parameter to specify the maximum leverage permitted at the account level: The maximum MAL permitted on the Crypto.com Exchange is 100x. See how to adjust it below. |
Maximum Product Leverage (MPL) | The maximum leverage permitted for a given instrument. The MPL can range from 1x to 100x depending on the instrument, as defined by the contract specification FAQ.
Spot pairs where “Margin Trading Eligibility = Yes” (for the short leg underlying) → please refer to the Margin Risk Parameters table for the underlying MPL.
Spot pairs where “Margin Trading Eligibility = No” (for the short leg underlying) → MPL = 1x
Perpetuals on BTC and ETH → MPL = 100x.
Perpetuals on other underlying → MPL = 50x. Futures → MPL = 100x |
Unit Margin Rate (UMR) | This value is specific to the instrument underlying. It defines the Margin Rate for holding one unit of the instrument. The UMR is defined by the Crypto.com Exchange Risk Team and is reviewed on a regular basis.
Spot pairs where “Margin Trading Eligibility = Yes” (for the short leg underlying) → please refer to the Margin Risk Parameters table for the UMR.
Spot pairs where “Margin Trading Eligibility = No” (for the short leg underlying) → UMR = 0
Perpetuals → UMR = Underlying UMR x 1.
Futures → UMR = Underlying UMR x 2.5 |
Position Quantity | Sum of all positions and/or order quantities for the given instrument |
Initial Margin
For positions / open orders with the same underlying (e.g. BTC is the underlying for BTC Perpetual and BTC Futures contracts), the system will calculate the Instrument Initial Margin (IM) requirement as per below:
The Instrument IM of all long positions and/or orders with the same underlying are summed. The Instrument IM of all short positions and/or orders are summed (in absolute value). Only orders that increase the underlying risk exposure will be considered (i.e. a long BTC margin trade and simultaneous short BTC Perpetual trade in the same notional will not increase underlying risk exposure and hence will not be considered).
The maximum value of the summed long or short Instrument IM is taken as the Underlying IM (‘side netting’ the IM requirement for positions/orders with the same underlying):
Finally, all Underlying IM requirements are accounted for to compute the account’s Initial Margin requirement:
Initial Margin (excl. fee reserves) =∑ Underlying Initial Margin
Initial Margin for Spot Margin Orders
For Spot Margin orders, the Spot pair is split into two legs: a long leg (underlying currency that you receive), reflected as a positive quantity, and a short leg (underlying currency that you borrow), reflected as a negative quantity.
Initial Margin is calculated and charged for any Spot assets with a net short position (negative quantity). Spot assets with a net long position (positive quantity) are not considered for Initial Margin, but are subject to a collateral haircut.
Adjusting Your Maximum Account Leverage
The Maximum Account Leverage is adjustable as long as your account has enough margin balance to meet the new margin requirement. The margin for open orders and open positions will be updated to reflect the new margin requirements. You can adjust it from the Trading Orderbox.