Key Terms and Formulas in Unified Trading Account

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2024-08-30 06:31:04

Account-Based

Term	Definition	Formula
Total Equity	Total equity of all assets under the account without considering the collateral value ratio (calculated in USD)	Wallet Balance + Perp & Futures UPL + Options Value
Margin Balance	The total amount that can be used as margin under the account after considering the collateral value ratio (calculated in USD)	Cross Margin Wallet Balance + Perp & Future UPL Portfolio Margin Wallet Balance + Perp & Future UPL+ Option Value
Account IM Rate	Initial margin base rate of the account	Cross Margin Total Initial Margin / (Margin Balance - Haircut Loss + Order Loss) Portfolio Margin Total Initial Margin / (Equity - Haircut Loss + Order Loss)
Account MM Rate	Maintenance margin base rate of the account	Cross Margin Total Maintenance Margin / (Margin Balance - Haircut Loss + Order Loss) Portfolio Margin Total Maintenance Margin / (Equity - Haircut Loss + Order Loss)
Total Initial Margin	The total amount of initial margin under the account (calculated in USD)	Σ Initial Margin for Open Positions + Σ Initial Margin for Active Orders + Σ Initial Margin on Borrowed Assets
Total Maintenance Margin	The total amount of maintenance margin under the account (calculated in USD)	Σ Maintenance Margin on Borrowed Asset + Σ Maintenance Margin for Open Positions + Σ Maintenance Margin for Active Orders
Perp & Futures UPL	Total unrealized profit and loss under USDT Perpetual and USDC Perpetual & Futures Contracts	∑ Asset - Based Perp & Futures UPL
Haircut Loss	Total potential value loss of margin due to spot orders (calculated in USD)	∑ Spot Symbol Haircut Loss (All Spot orders) [Note: See definition of Haircut Loss below]
Order Loss	The total potential value loss of the margin caused by the deviation of the perpetual order price from the Mark Price	∑ Asset - Based Order Loss (All Perpetual & Futures orders) Buy Order Loss: Min [0, (Mark Price - Order Price ) × Order Size] Sell Order Loss: Min [0, (Order Price - Mark Price ) × Order Size] [Note: See definition of Order Loss]
Option Value	Total option value under the account (calculated in USD)	∑ Asset - Based Option Value
Spot Margin Leverage	Selected Leverage	The spot leverage multiple of the account dimension selected by the user
Spot Margin Leverage	Effective Leverage	The Effective Leverage displays the ratio of the borrowed amount and the account equity. If Account IM Rate < 100%: Min(1 / (1 - Account Borrow IM Rate), Selected Leverage) If Account IM Rate >= 100%：Selected Leverage Account Borrow IM Rate (Cross Margin): Total Initial Margin on borrowed assets / (Margin Balance - Haircut Loss + Order Loss) Account Borrow IM Rate (Portfolio Margin): Total Initial Margin on borrowed assets / (Equity - Haircut Loss + Order Loss)

Asset-Based

Term	Definition	Formula
USD Value	The USD value of the asset (calculated in USD)	–
Wallet Balance	The amount of an asset	–
Equity	The equity of the asset without considering the collateral value ratio	Asset Wallet Balance + Perp & Futures UPL (USDC and USDT) + Options Value
Perp & Futures UPL	Unrealized profit and loss under USDT Perpetual and USDC Perpetual & Futures Contracts	Long Position Mark Price - Average Entry Price × Position Size Short Position Average Entry Price - Mark Price × Position Size
Option Value	Total option value calculated in USD	Option Mark Price × Position Size
Margin Balance	The amount of an asset that can be used as a margin after considering the collateral value ratio (USDC and USDT)	Cross Margin Wallet Balance + Perp & Future UPL Portfolio Margin Wallet Balance + Perp & Future UPL+ Option Value
Available Balance (for Derivatives)	The amount of an asset that can be used to open USDT Perpetual, USDC Perpetual & Futures, and USDC Options positions (USDC and USDT)	Cross Margin Margin Balance − Total Initial Margin − Frozen Portfolio Margin Equity − Total Initial Margin − Frozen
Initial Margin (for Open Positions and Active Orders)	The initial margin is the minimum amount of funds required to create derivatives orders and positions	Active Order Initial Margin = (Order Value / Leverage) + Estimated Fee to Open + Estimated Fee to Close Position Order Value = Order Size × Order Price Position Initial Margin = (Position Value / Leverage) + Estimated Fee to Close Position Position Value = Position Size × Average Entry Price IM for Hedged Positions (Cross Margin Mode): Position with Higher Value: 1. If it is a long position IM = (Total Position Value/Leverage) + [Hedged Position Value × (1 − 1 / Leverage) × Taker Fee Rate × 2] + [Unhedged Position Value × (1 − 1 / Leverage) × Taker Fee Rate] 2. If it is a short position IM = (Total Position Value/Leverage) + [Hedged Position Value × (1 + 1 / Leverage) × Taker Fee Rate × 2] + [Unhedged Position Value × (1 + 1 / Leverage) × Taker Fee Rate] Position with Lower Value: 1. If it is a long position IM= Hedged Position Value × (1 − 1 / Leverage) × Taker Fee Rate × 2 2. If it is a short position IM= Hedged Position Value × (1 + 1 / Leverage) × Taker Fee Rate × 2
Initial Margin (on Borrowed Assets)	The amount of initial margin taken up for Spot Margin Trading	Asset Borrow Size × IM Rate for Borrowed Asset
IM Rate (for Borrowed Assets)	The initial margin rate required for borrowing assets	Spot Margin OFF: IMR = 10% Spot Margin ON: IMR = Max (1 / User Spot Leverage, (1 + 1 / Max Platform Leverage) / Collateral Value Rate − 1 )
Borrowed Amount	Total borrowing amount for a corresponding asset with insufficient available balance	Cross Margin ABS [Min (0, Equity − Buy Option Initial Margin - Positive Option Value − Asset Frozen)] Portfolio Margin ABS [Min (0, Equity - Frozen)]
Maintenance Margin (for Open Positions)	The maintenance margin is the minimum amount of funds required to maintain derivatives position.	Maintenance Margin = Position Size × Position Average Price × Maintenance Margin Rate + Estimated Fee to Close Position MM for Hedged Positions (Cross Margin Mode): Position with Higher Value: 1. If it is a long position MM = (Unhedged Position Value × Maintenance Margin Rate) + [Hedged Position Value × (1 − 1 / Leverage) × Taker Fee Rate × 2] + [Unhedged Position Value × (1 − 1 / Leverage) × Taker Fee Rate] 2. If it is a short position MM = (Unhedged Position Value × Maintenance Margin Rate) + [Hedged Position Value × (1 + 1 / Leverage) × Taker Fee Rate × 2] + [Unhedged Position Value × (1 + 1 / Leverage) × Taker Fee Rate] Position with Lower Value: 1. If it is a long position MM = Hedged Position Value × (1 − 1 / Leverage) × Taker Fee Rate × 2 2. If it is a short position MM = Hedged Position Value × (1 + 1 / Leverage) × Taker Fee Rate × 2
Maintenance Margin (for Borrowed Assets)	The amount of maintenance margin occupied by the asset that has triggered auto borrowing	Borrowed Amount × MM Rate by Borrowed Asset
Maintenance Margin Rate (for Borrowed Assets)	The rate of margin required to maintain borrowed assets	Spot Margin OFF: 4% Spot Margin ON: 1.04 / Collateral Value Ratio − 1

Definition

Haircut Loss

If the collateral value ratio is set below 100%, such as 25%, it means that only a fraction of the asset's value, specifically 25%, can be used as collateral. This reduction in the collateral’s value is known as haircut loss.

For example, Trader Bob buys 1 BTC and pays 20,000 USDT.

Assuming the collateral value ratio of BTC is 95% and the USD price of BTC is $19,992, the collateral value ratio of USDT is 99.5% and the price of USDT is $0.9996.

Collateral Value of BTC: 1 × 19,992 × 95% = $18,992.4
Collateral Value of USDT: 20,000 × 0.9996 × 99.5% = $19,892.04
Haircut Loss (Difference in Collateral Value) = $19,892.04 - $18,992.4 = $899.64

Order Loss

With Perpetual and Futures Trading, users may experience a deviation in order price and current Mark Price.

If the price of a buy order is higher than the Mark Price, or the price of a sell order is lower than the Mark Price, it will result in an immediate equity loss once the order is filled. This loss is known as the potential loss from pending Perpetual & Futures orders.

For example, if the current Mark Price of a Perpetual contract is $2,000 and Trader Charlie submits 2 buy orders at $2,050, the potential Order Loss is ($2,050-$2,000) × 2 = $100.

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