Glossary for Bitget USDT-M Futures in Multi-Asset Mode

As mentioned in the previous article, Bitget's latest USDT-m futures multi-asset mode offers users extensive trading options. Although the underlying logic is straightforward, certain specific terms and calculation rules in the USDT-M Futures multi-asset mode differ from those in the single-asset mode. This article will enlighten you on those terms.

Account Assets

Account assets refer to the assets of a specific currency in the U-based futures account, excluding unrealized profits and losses. In other words, these account assets here represent the remaining balance of the coin in multi-asset mode.

Multi-asset margin

In Bitget USDT-M Futures multi-asset mode, coins are used as margin with an applied haircut rate. The sum of the converted margins from various currencies forms the multi-asset margin.

Multi-asset margin = Sum of margin amounts (equity of a coin × corresponding haircut rate) of all coins.

The equity of a coin = the account asset value of the coin in USDT + unrealized PnL.

In general, multi-asset margin = Coin A x index price x corresponding haircut + coin B x index price x corresponding haircut + ... + coin N x index price x corresponding haircut.

Assume that a user holds 0.1 BTC and 1,000 USDT, and the BTC index price is at 20,000 USDT.

The equity of BTC assets will be 0.1 × 20,000 USDT + unrealized PnL of 2000 USDT + unrealized PnL. As the unrealized PnL of USDT-M Futures is calculated in USDT, the unrealized PnL of BTC is zero.

Therefore, the BTC equity = 0.1 × 20,000 USDT + 0 = 2,000 USDT.

The haircut rate (discount rate) for BTC is as shown in the table below:

Since the BTC equity is 2,000 USDT, the corresponding haircut rate will be 0.975 (USDT equity remains unchanged).

The final multi-asset margin = BTC equity (2,000 USDT) × BTC haircut rate (0.975) + USDT equity (1,000 USDT) = 1,950 + 1,000 = 2,950 USDT.

Available Margin

Each coin has its own available margin.

Available Margin = Assets – Frozen amount – Position margin + Unrealized PnL of the coin (in cross-margin mode)

For instance, if the user has 0.1 BTC with an index price of 20,000 and a haircut rate of 0.975, and the USDT account has 1,000 USDT with unrealized profits of 200 USDT and a position margin (the assets used as margin for all related positions) of 500 USDT.

As such, the available margin for BTC is 0.1 × 20,000 × 0.975 = 1,950 USDT. Since USDT-M Futures uses USDT as the settlement currency, there are no PnL or frozen assets in BTC. The available margin for USDT = 1,000 + 200 – 500 = 700 USDT.

Available

Available assets that can be used as a margin to open a position.

Available = Sum of available margin for all coins – Initial margin of the debt.

The initial margin of the debt = absolute value of the debt × initial margin rate of the debt (10%) (*future updates will be announced in advance).

Under the multi-asset mode, debts arise when the assets of a coin are negative.

Debt = min(0, coin value); coin value = account assets + unrealized PnL. (Note: Only USDT will generate debts in USDT-M Futures multi-asset mode.)

Generally, users only need to check if there are any debts to determine the available margin to open positions. In the USDT-M Futures in multi-asset mode, all profits, transaction fees, and funding fees are settled in USDT, so USDT debts will be generated when USDT assets are insufficient. If there is a USDT debt of 100 USDT, the initial margin of the debt is 100 x 10% = 10 USDT.

Additionally, if there are debts, a certain amount of interest will be charged. Interest amount = Debt amount - Interest-free amount. The interest-free amount is for unrealized losses. The interest calculation rules differ from spot margin trading and Crypto Loan. We will carry out hourly scans and charge interest if there is any debt. The interest charges can be viewed in the transaction history.

It’s important to note that to better control risk, there is a maximum limit on user debts. Once this limit is exceeded, automatic conversion and repayment will be triggered. The current limit is 600,000 USDT. You will receive an early warning if the debt is too high.

Maintenance margin

Maintenance margin A = position value of cross-margin trading pairs A x corresponding MMR (maintenance margin rate) + position value of cross-margin trading pair B x corresponding MMR + ... + position value of cross-margin trading pair N x corresponding MMR.

Maintenance margin B = maintenance margin of the debt.

Total maintenance margin = max (maintenance margin A, maintenance margin B).

Maintenance margin of the debt = the absolute value of the debt × the MMR of the debt (5%).

The calculation for maintenance margin A is the same as the calculation for classic USDT-M Futures.

Maintenance margin rate = maintenance margin ÷ multi-asset margin.

Haircut rate (Discount rate)

This refers to the rate at which the margin currency is converted into USDT margin.

For example, if the haircut rate of a coin is 0.9, the margin calculated in USDT of the coin is 0.9 x coin quantity x index price. Haircut rates for coins are tiered and can be viewed on the futures details page.

Conversion rate

To reduce the risks involved in trading, the multi-asset mode converts non-USDT coins into USDT for quicker and more cost-efficient conversions. A conversion rate will be applied during the conversion.

The converted amount = Coin quantity × index price × conversion rate.

The conversion rate is tiered, and the larger the conversion amount, the better the conversion rate.

There are three scenarios for conversion:

1. When switching from the multi-asset mode to the single-asset mode, if USDT assets are insufficient, other coins in the USDT-M futures account can be converted to USDT.

2. When debts exceed the individual debt limit, the system will trigger risk control and automatically repay the debts through conversion.

3. When the account is at risk of liquidation or liquidation, the system will convert available assets to repay the debt.

Debt Repayment

There are three scenarios for repayment:

1. Voluntary repayment (by the user) with the 'Repay' button when there are debts (through conversion or transfer).

2. Automatic repayment is triggered when the debt limit is reached.

3. Automatic repayment at the risk of liquidation.

Trading bonuses

Bitget’s USDT-M Futures in multi-asset mode has been adjusted to support trading bonuses, ensuring that users can continue to use their trading bonuses normally when switching from single-asset mode to multi-asset mode.

1. Update on loss offset with trading bonuses

Previous: USDT equity at the time of closing the position ＜ initial USDT balance + accumulated USDT deposits + remaining trading bonuses.

Updated: USDT equity at the time of closing the position ＜ initial USDT balance + accumulated USDT deposits + remaining trading bonuses + USDT amount converted from other coins.

Initial USDT balance refers to the net assets at the time the trading bonuses are credited.

USDT amount converted from other coins refers to the amount of non-USDT margin coins converted to USDT in the multi-asset mode.

2. Any outbound transfer of supported margin coins will invalidate the trading bonuses.

3. USDT inbound transfer or conversion in the USDT-M Futures in multi-asset mode will change the initial equity.

Initial equity = initial USDT balance + accumulated USDT deposits + remaining trading bonuses + USDT amount converted from other coins.