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    Gate.io > Help Center > Markets&Margin T > Margin Trading
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    Introductions about Margin in Portfolio Margin Account
    Gate.io
    Updated at:49 days 12 hours ago

    In a portfolio margin account, every currencies asset in the account will be defined a corresponding adjustment factor according to the liquidity of it, and then converted into USD to uniformly calculate the assets and position values of the account. The system conducts unified risk control through position values and corresponding margin rates, thereby achieving margin sharing across currencies and multiple trading products, and effectively improving the efficiency of users' capital utilization.

    After the portfolio margin account is turned on, the risk rate indicator of the original cross-margin leverage account will no longer be used. Cross-margin leverage account and USD perpetual contract account will use total initial margin rate and total maintenance margin rate for risk control. The calculation method of related parameters is as follows:

    Total Margin Balance

    Total Margin Balance = Net Assets of Cross Margin Account + Balance of USD Perpetual Account + Unrealized Profit and Loss of USD Perpetual Account

    Total Available Margin Balance

    Total Available Margin = (Total Margin Balance - Total Initial Margin) * Adjustment Factor

    Note: The system will evaluate and adjust the adjustment factor of available margin according to market fluctuations

    Initial Margin

    Cross-margin Leverage Account Initial Margin = (Cross-margin Leverage Total Loan Amount + Unpaid Interest) * Cross-margin Leverage Initial Margin Rate

    Total Initial Margin of Portfolio Margin Account = Initial Margin of Cross-margin Leverage Account + Initial Margin of Perpetual Position Initial Margin + USD Perpetual Account Order Initial Margin

    Total Initial Margin Rate

    Total Initial Margin Rate=Total Margin Balance/Total Initial Margin

    Maintenance Margin

    Cross-margin Leverage Account Maintenance Margin

    = (Cross-margin Leverage Account Loan Amount + Unpaid Interest) * Cross-margin Leverage Account Maintenance Margin Rate

    Total Maintenance Margin = Cross Margin Account

    Maintenance Margin + USD Perpetual Contract

    Account Position Maintenance Margin

    Total Maintenance Margin Rate

    Total Maintenance Margin Rate = Total Margin Balance

    / Total Maintenance Margin

    Case:

    Suppose that a user holds 200 USDT in the cross-margin account, and there is no funds in the USD perpetual contract, the situation before and after turning on the portfolio margin account are as follows: (ignoring the outstanding interest and service fees)

    Portfolio Margin Account is not turned on:


    Borrowable Funds =
    Net Value of the Cross-margin Leverage Account *(maximum leverage multiple - 1) - Value of Outstanding Borrowed Assets =100 * 2-100 = 100 USDT

    Portfolio Margin Account is turned on

    Total Margin Balance =
    Net Assets of Cross Margin Account + USD
    Perpetual Contract Account Balance + USD Perpetual Contract Unrealized Profit and Loss

    =100 +0+0=100 USD

    Total Available Margin = Total Margin Balance - Total Initial Margin = 100-100*50%=50 USD

    Corss-margin Account Borrowable Funds =
    Total Available Margin / Cross-margin Account Initial Margin Rate = 50/50% = 100 USD

    Contract Account Openable Position Value = Available Balance/Contract Initial Margin Rate = 50/1% = 5000 USD

    Total Initial Margin Rate = Total Margin Balance/Total Initial Margin=100/(100*50%)=200%

    Total Maintenance Margin Rate = Total Margin Balance/Total Maintenance Margin=100/(100*10%)=1000%


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