Rules for cross margin trading
regulations are created in line with the principles of justice, openness, and impartiality in order to
regulate margin trading and margin loans of crypto assets, preserve market order, and protect users'
legitimate rights and interests.
regulations serve as the foundation for Gate.io's margin trading service, which includes borrowing loans,
trading, and other margin-related activities on the platform.
1.3 These rules
apply to margin borrowing and cross-margin trading. The Gate.io Service Agreement and other relevant
provisions apply to cases where there are no specific provisions in this document.
2.1 Margin traders
can use their cross margin account's net balance as collateral for cross margin trading.
2.2 All currencies
that are traded in the margin trading market are eligible as collateral for margin loans. Please refer to
Announcements for updates.
2.3 In order to
control risk, Gate.io introduces margin adjustment factor to help control risks of users' accounts. Margin
adjustment factor refers to the factor that the collateral currency is converted to its market price when
calculating its collateral value.
2.4 In order to
ensure the safety of the funds, Gate.io will adjust the range of borrowable currencies and the margin
adjustment factor. Please refer to Announcements for updates.
2.5 For the purpose
of controlling risks, Gate.io puts a limit on the total volume of the cross margin account and has the right
to modify this limit according to circumstances.s
3.Rules for Margin Loans
3.1 Maximum margin
loan limit refers to the maximum loan volume of the current margin trading currency. The user's current
maximum margin borrowing limit is calculated according to the user's maximum margin loan limit and
Gate.io's risk control measures. Maximum margin loan
limit = Min( [converted net balance of the cross margin account*(maximum leverage ratio - 1)-unrepaid
loans]/borrow factor, maximum borrowing limit of the currency).
Converted net balance
of the cross margin account = net balance of the cross margin account*margin adjustment
3.2 Borrow factor
refers to the factor that converts the loaned currency to its market price when calculating the amount of
3.3 After a margin
loan is successfully approved and the borrowed assets are sent to the user's cross margin account,
interest will begin to accumulate immediately. The user may use the loan for cross margin trading of the
approved currency pairs. (There is no fixed repayment date for cross margin loans. Users may repay the loans
at any time. The interest rate is being updated every hour and the total interest grows every hour. Please be
aware of the risks, repay the loan as early as possible and increase the collateral when necessary.)
Users can enable Auto-Repay on the margin trading page. If Auto-Repay is enabled, when the balance of your
margin account is lower than the order you are going to place, Auto-Repay will automatically borrow the
difference for you to complete the order. Interest starts to accrue once the loan is borrowed.
3.5 In order to
ensure asset safety, Gate.io will adjust the range of borrowable currencies. Please refer to Announcements for
View the margin
adjustment factor and borrow factor of borrowable currencies by clicking on "See more information on
calculation rule: Interest grows on an hourly basis. The total of loan hours is the length of time where the
user holds the loan. If a user holds a loan for x hours and y(0<y<60) minutes, the total of loan hours
will be x+1.
The formula:interest = loan*(daily interest rate/24)*total of loan hours
4.2 Users can repay
the loan in advance partially or fully and the interest will be calculated according to the actual length of
time. Repayment goes to cover the interest first. Only after the interest is fully paid, will the rest of the
repayment cover the principal.
4.3 The interest,
when not repaid, will be included when calculating risk rate. With outstanding interest accruing over a long
period of time, it may press the risk rate below the threshold and trigger liquidation. To eliminate this
possibility, users should pay off the interest regularly and keep a safe balance in their margin
4.4 Gate.io will
adjust the interest rate every hour according to market trends.
5.1 Users can
manually select the loans to repay. When entering the repayment volume, users can choose to either repay the
loan fully or partially. Interest must be covered first before users can pay off the loan fully. In the next
hour, interest will be calculated with the latest total loan volume.
5.2 The currency
used to pay back a loan must be the same one that the user received from the loan. Users must ensure that
there is a sufficient amount of the same currency at the time of payback.
Users can enable Auto-Repay on the margin trading page. Orders placed when Auto-Repay is enabled must finish
first before the loan can be repaid by the funds the user gets from the order.
6.1 Margin traders
use the net balance in their cross margin accounts as collateral. Assets in other accounts do not count as
collateral unless transferred to their cross margin accounts.
6.2 Gate.io has the
authority to adjust the maximum collateral value for each borrowable currency. The maximum collateral value is
used to calculate the risk rate of cross margin accounts, buying limit and withdrawal limit.
6.3 Gate.io has the
authority to monitor the risk rate of the users' cross margin accounts and take appropriate actions in
response to changes of the risk rate. Risk rate of the
cross margin account = total balance in the cross margin account/(loan volume + outstanding interest)
The market value
conversions all use USDT as the price unit. Total balance in the
cross margin account = total market value of all crypto assets currently in the cross margin
account Loan volume = total
market value of all outstanding margin loans of the cross margin account Outstanding interest =
total market value of all margin loans* total of loan hours*hourly interest rate - paid
6.4 Risk Rate &
Actions When risk rate >
2, users can trade, borrow loans and withdraw funds from margin account (as long as the risk rate stays above
150% after the withdrawal). Withdrawable funds =
Max[(risk rate-150%)*(total loan volume+outstanding interest)/last price of USDT,0] When 1.5＜ risk rate
≤2, users can trade and borrow loans, but can't withdraw funds from margin account. When 1.3＜ risk rate
≤1.5, users can trade, but can't borrow loans or withdraw funds. When 1.1＜ risk rate
≤1.3, users can trade, but can't borrow loans or withdraw funds. Users will be recommended to increase
collateral to avoid liquidation and notified of potential risks via email and SMS. Notifications will be sent
every 24 hours. Upon receiving the notifications, users ought to repay the loans (partially or fully) or
transfer more funds to margin account to make sure the risk rate stays above 130%. When risk rate ≤1.1,
forced liquidation will be triggered. All assets from the cross margin account will be used to pay back the
loans and interests. The user will be notified in an email or an SMS message of the liquidation.
6.5 Users should be
aware of the risks of margin trading and promptly adjust the position holding ratio to avoid risks. All losses
resulting from forced liquidation shall be covered solely by the user who owns the margin account, including
but not limited to losses made in the following scenario: The user fails to conduct appropriate actions in
time after receiving a warning notice from Gate.io because the risk rate drops to the liquidation threshold
right after it triggers warning notifications.
6.6 Gate.io manages
margin trading and its risks smartly. When margin trading and margin loans enter the pre-set warning range,
Gate.io will take necessary risk prevention measures, including but not limited to enforcing liquidation and
restrictions on transferring funds, going long/short and trading on margin.
6.7 Gate.io monitors
the total market value of cross margin loans. When the total margin loan volume reaches the limit, Gate.io
will temporarily disable the account from borrowing margin loans until the total market value is below the
6.8 According to the
real-time market trends and volatility, Gate.io will change the pre-set maximum margin loan limit and total
margin loan volume on the platform.
Gate.io reserves the
right to finally interpret Rules for Cross Margin Trading