How to Use Mixed Collateral

Announcements How to Use Mixed Collateral

2021-08-27 02:17:33 UTC 82507 Read

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In order to provide futures users with a more flexible and convenient trading experience, Gate.io now offers USDT Perpetual futures which allows mixed collateral loans.

Through mixed collateral, you can collateralize BTC and ETH in your spot accounts and borrow a maximum of 100,000 USDT for futures trading with zero interest. You do not need to sell your digital assets or transfer funds to the futures account. Margin will be automatically deducted from the spot account. Mixed collateral loans cannot be withdrawn. As of now, this feature remains only web-based but is going to be updated on App soon. Currently, only BTC and ETH are available as collateral. Gate.io is working to increase the number of collateral currencies.

The mixed collateralized loan is the value conversion of the collateral to resist the risk of futures liquidation. Since no actual borrowing occurs, there is no trading fee. However, when the loan-to-value ratio exceeds the threshold, no matter if other assets are sufficient in the futures, there will be a liquidation on the collateralized assets, which is irrelevant to the amount of trading margin in the futures account. Please make sure that there is sufficient collateral for futures margin loans. When the LTV ratio rises, please promptly increase the amount of collateral currency.

### Loan-to-value Ratio (LTV Ratio) is the ratio of a borrowed loan to the value of its collateral. A lower loan-to-value ratio indicates lower risks of liquidation.

### How to borrow funds using mixed collateral ( USDT settled perpetual futures as an example):

1. Find "Mixed Collateral" in the Assets zone on the futures trading page and click on "Borrow". 
2. Enter the borrowed amount and select the collateral currency (BTC or ETH) and LTV ratio. Enter the collateral amount and click on "Confirm". 
3. When repaying, you can click “Manage” to go to the futures account on the wallet page. Check the loan amount and find out how to repay in the  "Perpetual Futures"-"Collateral".

![](https://gimg2.gateimg.com/image/article/1672736952en1.png)
![](https://gimg2.gateimg.com/image/article/1672736960en2.png)

**Note: Margin will be automatically deducted from the spot account. Mixed collateralized loans cannot be transferred out.**

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