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About Portfolio Margin Account Margin

2022-11-13 09:09:24 UTCRead：14103

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Assets in the Portfolio Margin Account will be given respective adjustment factors based on their liquidity to calculate their value in USD, and further to calculate the overall assets and the notional value of open interest in the Portfolio Margin Account. Our system will perform risk control measures over the entire portfolio according to the notional value of open interest and the margin level. To this end, multi-currency margin sharing for multiple trading types is viable and the capital efficiency is enhanced significantly.

To make margin level calculations more compatible, Spot Margin Trading Maintenance Margin Level is set as 10% and Initial Margin Level 33.00%; margin level calculations for USDT-M, BTC-M Perpetual Futures are aligned with the original ones. (The Initial Margin Level for Spot Margin Trading has been adjusted.)

*Please go to [Initial Margin & Maintenance Margin](https://www.gate.io/zh/help/futures/futures/22148/initial-margin-maintenance-margin "Initial Margin & Maintenance Margin") Page to check Perpetual Futures Margin Level Calculations under the Portfolio Margin Account mode

*Please go to [Margin Trading Borrowing Rate](https://www.gate.io/cross_margin/market_info "Margin Trading Borrowing Rate") page to check USD value calculation for different coins

After activating the Portfolio Margin Account, Portfolio Initial Margin Level and Portfolio Maintenance Margin Level will be used to perform risk control measures over the entire portfolio, including Spot Margin Trading, USDT-M, BTC-M Perpetual Futures. Calculation details are as follows:

|Term|Formula|
| :------------ | :------------ |
|Portfolio Margin Balance|Portfolio Margin Balance = ∑(Positive Equity x Index Price x Adjustment Factor) + ∑(Negative Equity x Index Price) - Haircut Loss|
|Portfolio Available Margin| Portfolio Available Margin = Portfolio Margin Balance - Portfolio Initial Margin|
|Portfolio Initial Margin|Portfolio Initial Margin = (Spot Borrowed + Spot Negative Balance Caused by Loan Interest Deduction + Futures Negative Balance) * Margin Trading Initial Margin Level + Futures Initial Margin + Futures Initial Margin for Open Orders|
|Portfolio Initial Margin Level|Portfolio Initial Margin Level = Portfolio Margin Balance / Portfolio Initial Margin|
|Portfolio Maintenance Margin|Portfolio Maintenance Margin =  (Spot Borrowed + Spot Negative Balance Caused by Loan Interest Deduction + Futures Negative Balance) * Margin Trading Maintenance Margin Level + Futures Maintenance Margin|
|Portfolio Maintenance Margin Level|Portfolio Maintenance Margin Level = Portfolio Margin Balance / Portfolio Maintenance Margin|

Note: USD value calculation for different coins is based on [Margin Trading Borrowing Rate](https://www.gate.io/cross_margin/market_info "Margin Trading Borrowing Rate"). It is currently by default that USDT to USD convert ratio is 1:1.

## Example on Portfolio Margin Account Margin
Suppose user A has 200 USDT in the Portfolio Margin Account, and A's trading status is as follows (unrepaid interest and trading fees neglected):

**Portfolio Margin Account Activated**

User A chooses a 3x leverage, and has a margin balance of 100 USDT and a loan of 200 USDT.
The Spot Margin Trading Maintenance Margin Level is 10%, and the Initial Margin Level is 33.00%.

Portfolio Margin Balance = Margin Available for Margin Trading and for Opening Positions in Perpetual Futures in the Portfolio Margin Account + Margin Trading Initial Margin + Perpetual Futures Initial Margin = 100+0+0=100 USD

Borrowable = min (Portfolio Available Margin / Portfolio Initial Margin Level / USDT Value of Last Price, Maximum Loan for the Coin)
Max Borrowable =100/33.00%/1 = 303.03

Portfolio Initial Margin = Spot Margin Trading Borrowed x Spot Margin Trading Initial Margin Level
Portfolio Initial Margin = 200 x 33.00% = 66

Portfolio Initial Margin Level = Portfolio Margin Balance / Portfolio Initial Margin
Portfolio Initial Margin Level = 100/66 = 151.51%

Portfolio Maintenance Margin = Spot Margin Trading Borrowed x Spot Margin Trading Maintenance Margin Level
Portfolio Maintenance Margin = 200 x 10% = 20

Portfolio Maintenance Margin Level = Portfolio Margin Balance / Portfolio Maintenance Margin
Portfolio Maintenance Margin Level = 100/20 = 500%

### Negative Balance Management under the Portfolio Margin Account Mode
Under the Portfolio Margin Account mode, if losses occur in  futures trading, a negative margin balance may be displayed. Under such circumstance, Gate.io adopts the following management:
1. The negative balance in the portfolio Margin Account is deemed as a loan, which also has a initial margin level and a maintenance margin level.
2. To make margin level calculations more compatible, the maintenance margin level for the negative balance in futures is 10% and the initial margin level is 33.00%.
3. To ensure the security of your assets, Gate.io reserves the right to adjust the initial margin level and maintenance margin level for the negative balance in futures. Any adjustment will be disclosed via official announcements.
4. The risk control mechanism is applicable to the negative balance in futures. When the Portfolio Margin Level is below 100%, the system will trigger liquidation. Please go to the [Risk Control Mechanism for Portfolio Margin Account](https://www.gate.io/zh/help/trade/portfolio/28674/risk-control-mechanism-for-portfolio-margin-account "Risk Control Mechanism for Portfolio Margin Account") page for more information.

About Portfolio Margin Account Margin

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