To enhance platform stability and risk management, a significant update to the Portfolio Margin calculation methodology has been implemented. This adjustment specifically modifies how the Scale Multiplier functions within the margin calculation framework. The core change involves a segmented calculation approach for the Scale Multiplier, which is now only applied to the Liquidation Cost (MR7) within a single derivatives risk unit.
The update refines the mechanism for determining maintenance margin requirements. The calculation now processes increments of the position size that exceed specific thresholds using progressively higher multipliers from a predefined tier table. This ensures a more granular and risk-responsive margin requirement system. Three distinct tier tables have been established, grouping various risk units based on the underlying asset's risk resilience.
Key Changes to the Scale Multiplier Logic
The primary adjustment lies in the application of the Scale Multiplier. Previously, its interaction with other margin components was broader. Now, its effect is solely isolated to the MR7 component within its specific derivatives risk unit. This creates a more precise and calculated approach to margin requirements for larger positions.
The segmented calculation method means that instead of applying a single multiplier to the entire position value, the system assesses the value in chunks. Each chunk of value that falls within a specific threshold range in the tier table is multiplied by the coefficient assigned to that range. The results are then summed to produce the final adjusted MR7 value (MR7_adj).
Overview of the Three Tier Tables
Three separate tier tables categorize all derivatives risk units. The assignment to a table is based on the inherent volatility and market depth of the underlying asset, with more resilient assets grouped into lower multiplier tables.
Tier Table 1: High Market Cap Assets
This table applies to the most liquid and stable trading pairs.
- Included Risk Units: BTC-USD, BTC-USDT, ETH-USD, ETH-USDT.
Tier Structure:
Tier Threshold Range (USD) Multiplier 1 [0 ~ 10,000] 1 2 (10,000 ~ 70,000] 2 3 (70,000 ~ 170,000] 4 4 (170,000 ~ 300,000] 6 5 (300,000 ~ 470,000] 8 6 (470,000 ~ 700,000] 10 7 (700,000 ~ +∞) 12
Tier Table 2: Mid-Tier Assets
This group consists of established altcoins with significant market presence.
- Included Risk Units: LTC, BSV, TRX, DOT, XRP, ETC, EOS, FIL, ADA, BCH, LINK (both coin- and USDT-margined pairs).
Tier Structure:
Tier Threshold Range (USD) Multiplier 1 [0 ~ 7,000] 1 2 (7,000 ~ 16,000] 2 3 (16,000 ~ 29,000] 3 4 (29,000 ~ 43,000] 4 5 (43,000 ~ 69,000] 5 6 (69,000 ~ 95,000] 6 7 (95,000 ~ 121,000] 7 8 (121,000 ~ 147,000] 8 9 (147,000 ~ +∞) 9
Tier Table 3: Other Derivatives Pairs
All other derivatives risk units not covered in the first two tables fall under this third category.
- Included Risk Units: All other pairs.
Tier Structure:
Tier Threshold Range (USD) Multiplier 1 [0 ~ 3,000] 1 2 (3,000 ~ 8,000] 2 3 (8,000 ~ 14,000] 3 4 (14,000 ~ 19,000] 4 5 (19,000 ~ 27,000] 5 6 (27,000 ~ 36,000] 6 7 (36,000 ~ 45,000] 7 8 (45,000 ~ 54,000] 8 9 (54,000 ~ 63,000] 9 10 (63,000 ~ 72,000] 10 11 (72,000 ~ 81,000] 11 12 (81,000 ~ 90,000] 12 13 (90,000 ~ +∞) 13
Practical Calculation Examples
Example 1: Using Tier Table 1 (BTC-USD)
- Initial Values: MR = 40,000 USD; MR7 = 30,000 USD.
- Old Maintenance Margin: max(MR, MR7) = 40,000 USD.
New Calculation (MR7_adj):
- 10,000 (from Tier 1) * 1 = 10,000
- (30,000 - 10,000) = 20,000 (falls into Tier 2) * 2 = 40,000
- MR7_adj = 10,000 + 40,000 = 50,000 USD.
- New Maintenance Margin: max(40,000, 50,000) = 50,000 USD.
Example 2: Using Tier Table 2 (LTC-USD)
- Initial Values: MR = 15,000 USD; MR7 = 6,000 USD.
- Old Maintenance Margin: max(MR, MR7) = 15,000 USD.
New Calculation (MR7_adj):
- The entire MR7 value (6,000 USD) falls within Tier 1.
- MR7_adj = 6,000 * 1 = 6,000 USD.
- New Maintenance Margin: max(15,000, 6,000) = 15,000 USD.
For a complete understanding of how these new margin requirements might affect your specific positions, it is crucial to 👉 review your account's margin details.
Important Risk Advisory
Financial markets are inherently volatile. This adjustment to the tiered rules will directly impact your maintenance margin rate. It is your responsibility to proactively manage your account risk. To prevent potential automatic liquidations triggered by these calculation changes, please consider:
- Partially or fully closing positions.
- Reducing position sizes.
- Transferring additional funds to your margin account.
These actions will help ensure your maintenance margin remains sufficient under the new calculation logic.
Frequently Asked Questions
What is the Scale Multiplier in portfolio margin?
The Scale Multiplier is a factor applied to the liquidation cost (MR7) component of the margin calculation. Its purpose is to increase the maintenance margin requirement for larger positions, which are typically harder to liquidate in the market without causing significant price impact.
How does the segmented calculation method work?
The segmented, or tiered, method breaks down the value of MR7 into parts. Each part that falls within a specific dollar-value range (threshold) in the tier table is multiplied by that tier's coefficient. The final adjusted MR7 value is the sum of all these individual calculations.
Why were different tier tables created?
Different cryptocurrencies have varying levels of liquidity and market depth. A large position in a major asset like Bitcoin is less risky to the system than a similarly-sized position in a less liquid altcoin. The tier tables categorize assets by their risk profile, applying appropriately scaled multipliers.
Will this change always increase my margin requirement?
Not necessarily. The change refines the calculation. For some positions, the requirement may stay the same or could even decrease slightly depending on the exact size and the new tiered calculation. However, for larger positions that span multiple tiers, the requirement is likely to increase.
How can I check my new maintenance margin?
Your account interface will display the current maintenance margin requirement based on the new calculation logic. It is highly recommended to monitor this closely after the update. You can 👉 explore more strategies for managing your portfolio margin effectively.
Where can I find which tier table my positions fall under?
The official documentation and help sections provide comprehensive lists of which trading pairs are assigned to which tier table. Refer to the tables outlined in this announcement for a general guide.