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Crypto.com Prime - Margin Trading
Crypto.com Prime - Margin Trading
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Written by Support Specialist
Updated today

What is Margin Trading?

Exclusive to Crypto.com Prime users, Margin Trading allows you to borrow funds to buy or sell larger positions, potentially amplifying your profits.

For example, suppose you don’t have BTC in your Margin Wallet and want to take a short position. In that case, you can borrow BTC to sell and incur a negative BTC balance, provided you have sufficient Collateral to

support the position.

Conversely, if you want to buy BTC with USD but have an insufficient USD balance, you can execute the order by borrowing USD and incurring a negative USD balance.

Note: only margin buy on tokens will be enabled during initial launch.

How do I activate and fund my Margin Wallet?

There are three ways to activate your Margin Wallet:

  1. From the Account tab, tap the Set Up button next to Margin Wallet

  2. From the Prime membership screen, tap Margin

  3. From any coin screen, toggle on Trade With Margin

Then, follow the on-screen instructions to transfer eligible assets to your Margin Wallet. Tap the Transfer In button on the Margin Wallet screen for subsequent funding.

Please note that only the Eligible Collateral Assets listed in the table below can be transferred to your Margin Wallet. The maximum amount of Eligible Collateral Assets that can be transferred is calculated based on your remaining Collateral Limit or the available token/fiat funds in your Crypto/Fiat Wallet.

Eligible Collateral Assets

Haircut*

Maximum Collateral Limit**

USD Equivalent

BTC

20%

25,000,000

ETH

20%

15,000,000

SOL

20%

5,000,000

AVAX

20%

1,500,000

XRP

20%

1,000,000

LINK

20%

1,000,000

ADA

20%

1,000,000

ATOM

20%

500,000

BCH

20%

500,000

CRO

20%

500,000

DOGE

20%

500,000

DOT

20%

500,000

LTC

20%

500,000

PAXG

20%

500,000

MATIC

20%

250,000

SHIB

20%

250,000

XLM

20%

250,000

USDT

4%

20,000,000

PYUSD

10%

5,000,000

USDC

No haircut

N/A

USD (Fiat)

No haircut

N/A

EUR (Fiat)

4%

25,000,000

*Haircut is the portion deducted from the asset market value that will not contribute to the Margin Wallet Free Collateral Balance to account for volatility.

**The Maximum Collateral Limit is the threshold at which excess asset value no longer contributes to the Free Collateral Balance.

The assets you transfer in are displayed at the bottom of the Margin Wallet screen. Based on the Cross Margin Policy, the aggregate market value of all assets in your Margin Wallet contributes to a Free Collateral Balance that allows you to borrow under a Margin Order.

How do I transfer funds out of my Margin Wallet?

Follow the steps below to transfer out funds from your Margin Wallet:

Select the asset you wish to transfer on the Margin Wallet screen

Tap the Transfer Out button

Suppose you have a negative balance for other assets (e.g., borrowed positions). In that case, the amount that can be transferred out will be smaller than the quantity in your Margin Wallet, as this is necessary to maintain a Health Score above 2.

If you are transferring USD funds, select whether you want to transfer US Dollars or USDC

Note: US Dollar and USDC assets are treated as a single USD Bundle balance. If you have a USD Bundle balance in your Margin Wallet, you may transfer either US Dollars to your Fiat Wallet (if available to your jurisdiction) or USDC to your Crypto Wallet.

Input the Transfer Out amount and confirm

Margin Wallet Terms

Margin Wallet Balance

The total market value of all assets in your Margin Wallet.

Free Collateral Balance

The remaining Collateral Balance available for placing additional Margin Orders

If any asset’s market value exceeds the Maximum Collateral Limit, the excess value will not contribute to the Free Collateral balance

Used Collateral Balance

The collateral balance already used to support haircut and borrowing position risks on risky assets (all assets except USD Bundle assets are treated as risky assets)

  • Haircut is applied to positive asset balances; it is a portion deducted from the asset’s market value to account for asset volatility

  • Position risk is applied to negative asset balances to account for the risk associated with borrowing. The risk amount depends on product leverage. If you borrowed a US$1,000,000 position and the product leverage is 5x, US$200,000 will be added to the Used Collateral Balance to support the position risk.

You must have enough Margin Wallet Balance to support the required Used Collateral Balance for your Margin positions. If not, Margin Call will be triggered, and certain activities will be restricted.

Maintenance Balance

The minimum risk threshold before the Liquidation condition is triggered (half of the Used Collateral Balance)

You must have enough Margin Wallet Balance to meet the Maintenance Balance. If not, all positive assets and borrowed positions will be progressively auto-liquidated until the Margin Wallet Balance exceeds the Used Collateral.

Account Leverage

The current level of exposure of risky assets against the Margin Wallet Balance

Health Score

A measure of how much Margin Wallet Balance you have against the required Maintenance Balance:

In Liquidation 0 - 1.00: Assets are progressively auto-liquidated until the Margin Wallet Balance exceeds the Used Collateral

Margin Call 1.00 - 2.00: Transfer in funds or reduce positions to avoid liquidation

Approaching Margin Call 2.00 - 3.00: Margin Orders can still be placed as long as the Margin Wallet Balance exceeds the Used Collateral

Fair / Excellent > 3.00: Margin Wallet is healthy

How do I place a Margin Order?

From the Prime membership screen, tap Margin next to the Trade button

Tokens eligible for Margin Trading are displayed with symbol

Select the token you want to trade and check that Trade With Margin is toggled on. Tap Buy or Sell.

The Margin Trading screen displays the maximum quantity of tokens you may trade or the maximum order notional (if you switch your input to the total USD notional). The maximum quantity is based on your Free Collateral Balance and Trading Limits (Order Limits and Borrowing Limits), the maximum you can input is indicated above the keypad.

All tokens are traded against your USD Bundle assets:

  • When you buy a token, you spend your USD Bundle balance. The USD Bundle assets in your Margin Wallet are deducted first, and additional required USD Bundle amounts are borrowed.

  • When you sell a token, you spend your token balance. The balance in your Margin Wallet is deducted first, and additional required tokens are borrowed.

Borrowing is possible if you have a positive Free Collateral Balance and have yet to reach your Trading Limits.

The risk bar below the input indicates the risk level of the intended order size. Blue means you are spending the existing asset balance in your Margin Wallet, while orange indicates borrowing.

The Available field shows the assets in your Margin Wallet that you can use to pay for the trade. The Borrowing field changes according to your order size input and indicates the additional assets you would borrow for the order size inputted.

Tradeable Tokens and Trading Parameters

Note: during initial launch, only margin buy on tokens will be enabled. You may borrow USD Bundle assets to margin buy tokens.

Asset

Max. Product Leverage*

Max. Order Limit (USD Notional)**

BTC

5x

2,000,000

ETH

5x

2,000,000

SOL

5x

500,000

XRP

5x

250,000

AVAX

5x

500,000

LINK

5x

250,000

ADA

5x

250,000

ATOM

5x

100,000

BCH

5x

150,000

CRO

5x

50,000

DOGE

5x

250,000

DOT

5x

150,000

LTC

5x

250,000

PAXG

5x

50,000

MATIC

5x

150,000

SHIB

5x

150,000

XLM

5x

150,000

*Max Product Leverage determines how much Collateral Balance will be used to support the position risk.

**Max Order Limit is the maximum size per order to prevent excessive price slippage. You may place multiple orders as long as you have sufficient Free Collateral Balance.

Tokens are traded against USD Bundle assets

  • USD Asset Max Borrowing Limit = USD 10,000,000. Once reached, you may not place further margin buy orders.

  • Daily Interest Rate / Annual Interest Rate = 0.07150% / 26.10%*

Note: Crypto.com reserves the right to change the above details at any time at our sole discretion. Please regularly check this page for latest details of Tradeable Tokens and Trading Parameters.

How do I repay borrowed assets in my Margin Wallet?

Negative asset balances in your Margin Wallet indicate borrowed positions, which incur hourly interest.

Borrowed positions need to be secured with Collateral. If the market value of your borrowed positions increases or the market prices move against your borrowed positions, the Used Collateral Balance will increase and the Free Collateral Balance will decrease, limiting your ability to place additional Margin Orders.

You must have enough Margin Wallet Balance to support Used Collateral; otherwise, Margin Call will be triggered.

To repay borrowed assets, you may do the following:

  1. Transfer In: For example, if you have negative 100 USD bundle balance in your Margin Wallet, you can transfer 100 USDC from your Crypto Wallet to your Margin Wallet, or 100 USD fiat from Fiat Wallet (if available to your jurisdiction).

  2. Buy Back: For example, if you have negative 100 USD bundle balance in your Margin Wallet, you can place a Sell order on any available token assets in your Margin Wallet into USD bundle to repay.

What does Margin Call mean?

Margin Call is triggered when your Health Score falls below 2.0 but exceeds 1.0. In this case, the Margin Wallet Balance cannot support the required Used Collateral Balance.

During Margin Call, all transfers of assets out of your Margin Wallet are restricted. You may transfer in assets to increase your Margin Wallet Balance to more than the Used Collateral Balance, bringing your Health Score back to 2.0.

Only Margin Orders that decrease risks will be allowed during Margin Call. For example, you can only sell the asset quantity you already have in your Margin Wallet to reduce Haircut, or buy back the token amount you borrowed to reduce position risk.

.A warning email and alerts will be sent to remind you to monitor your Margin Wallet closely, add more Collateral, or reduce risk.

What does Liquidation mean?

When your Margin Wallet Balance falls below your Maintenance Balance, your Health Score will be lower than 1.0, the minimum risk threshold. In this scenario, Liquidation is triggered.

During Liquidation, all transfers of assets out of your Margin Wallet are restricted. You cannot place Margin Orders; however, you can continue to trade using your Crypto Wallet.

All assets and positions in your Margin Wallet will be progressively auto-liquidated until your Margin Wallet Balance exceeds your Used Collateral Balance again.

An email and alerts will be sent to confirm that your Margin Wallet has been progressively liquidated.

Additional Notes:

  • Liquidation is subject to a 0.5% Liquidation Fee paid in the receiving asset currency.

  • After Liquidation, if the total Margin Wallet Balance is negative, we may suspend your access to certain Crypto Wallet, Fiat Wallet, and Crypto.com Visa Card services, where applicable.

What are the Margin Wallet fees?

The Margin Wallet Trading Fee is 0.02%. Margin Orders are executed net of fees, and fees are charged in the receiving asset currency.

For example, if you buy 1 BTC at US$60,000:

  • 0.9998 BTC will be added to your Margin Wallet Balance (after deducting a 0.02% fee)

  • 60,000 USD bundle will be deducted from your Margin Wallet (or borrowed if you do not have enough USD bundle assets)

A Borrowing Interest is also applied. Please refer to the Tradeable Tokens and Trading Parameters above, where rates are subject to change. Borrowing Interest is charged hourly in the same token as the borrowed assets.

For example, if the current daily interest rate for USD is 0.1068% per day, the current hourly interest rate is 0.00445% based on the following formula:

Hourly Interest = Daily Interest ÷ 24 = 0.1068% ÷ 24 = 0.00445%

If your Margin Wallet currently has -60,000 USD (indicating you borrowed 60,000 USD), 2.67 USD in interest will be deducted at the end of the first hour. The USD balance in your Margin Wallet will become -60,002.67 USD at the end of the first hour.

How do I view my Margin Wallet transaction history?

From the Margin Wallet screen, tap the ‘clock’ icon on the top-right corner to view your transaction history over the past 30 days. You will find:

  • Order history and details, including orders entered into resulting from Liquidation

  • The movements of each asset (i.e., deposits and withdrawals)

  • Associated trading fees and interest incurred from borrowing

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