Total Assets: Quoted currency total assets + trading currency total assets * latest transaction price
Total Liabilities: Quoted currency borrowed assets + trading currency borrowed assets latest transaction price + quoted currency unpaid interest + trading currency unpaid interest latest transaction price
Net Assets: Total assets - Total liabilities
Available Assets: Coins in the leverage account that users can utilize to place orders, including transferred and borrowed amounts.
Risk Rate & Liquidation
Risk Rate Formula:
Risk Rate = Total Assets / Total Liabilities * 100%
= (Quoted currency assets + Trading currency assets * latest price) /
(Quoted currency borrowed + Trading currency borrowed * latest price +
Quoted currency interest + Trading currency interest * latest price) Example Scenario:
- User borrows 0.1 BTC with 1000 USDT collateral (BTC price: 50,000 USDT).
- Total Assets: 1000 + (0.1 × 50,000) = 6,000 USDT
- Total Liabilities: (0.1 × 50,000) + (0.0000033 × 50,000) ≈ 5,000.17 USDT
- Risk Rate: 6,000 / 5,000.17 ≈ 120%
If BTC price rises to 55,000 USDT:
- Liabilities: (0.1 × 55,000) + (0.0000033 × 55,000) ≈ 5,500.18 USDT
- Risk Rate: 6,000 / 5,500.18 ≈ 109.09% (approaching liquidation threshold).
👉 Master risk management strategies to avoid liquidation triggers.
Key Liquidation Terms
Liquidation Line:
- When the risk rate ≤ 105%, the system forcibly closes positions to repay debts.
Liquidation Warning Line:
- Triggers SMS alerts if the risk rate nears dangerous levels.
Margin Call Line:
- Notifies users to deposit additional collateral to prevent liquidation.
Liquidation Price Formula:
Liquidation Price =
[(Quoted currency borrowed + interest) × liquidation risk rate - Quoted currency assets] /
[Trading currency assets - (Trading currency borrowed + interest) × liquidation risk rate] Example: Estimated liquidation price ≈ 57,141 USDT.
Additional Concepts
- Over-Liquidation ("Clawback"):
Occurs when liquidated assets cannot cover debts. Users must repay deficits promptly to avoid account restrictions. Asset Transfers Out of Leverage Account:
- With active loans: Transfer allowed only if post-transfer risk rate ≥ 200%.
- No loans: All available assets can be transferred.
FAQs
Q: How is the risk rate calculated?
A: It’s the ratio of total assets to total liabilities, expressed as a percentage.
Q: What happens during liquidation?
A: Positions are automatically sold to repay borrowed funds when the risk rate drops below 105%.
Q: Can I withdraw assets while using leverage?
A: Yes, but only if the remaining collateral maintains a risk rate above 200%.
👉 Explore advanced trading tools to optimize your leverage strategies.
Disclaimer: Cryptocurrency trading involves significant risks. This content is for informational purposes only and does not constitute financial advice. Always conduct independent research before investing.
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