2024-10-23 07:21:43Bybit now supports the Isolated Margin mode for Unified Trading Accounts (UTA), along with the existing Cross Margin and Portfolio Margin modes.
In Isolated Margin mode, only Spot Trading is supported. Hence, no liquidation risk is involved.
In Cross Margin and Portfolio Margin modes, the risk of a Unified Trading Account is assessed using the Initial Margin Rate (IMR) and Maintenance Margin Rate (MMR) of all positions. Liquidation is triggered when MMR reaches 100%.
Liquidation Process
Isolated Margin Mode
In Isolated margin mode, only Spot Trading is supported. Hence, there is no liquidation risk involved.
Cross Margin
Cross Margin mode in UTA is based mainly on margin balance, initial margin, maintenance margin, and active order(s) haircut loss (depending on the collateral value ratio of different assets). Liquidation will be triggered when the account’s MMR reaches 100%. For the detailed formula to calculate the margin, please refer to the Glossary (Unified Trading Account).
The liquidation process of the Unified Trading Account under Cross Margin is as follows:
|
Margin Rate Level | ||||
|
Account Initial Margin Rate (IMR) |
≥ (Selected Leverage − 1 / Selected Leverage ) |
| ||
|
≥100% |
| |||
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Account Maintenance Margin Rate (MMR) |
= 100% |
Step 1: Cancel Active Orders Cancel Spot Margin orders with liability or with haircut loss, i.e., orders that buy lower collateral value assets with higher ones. Step 2: Auto Repayment Auto repayment will be triggered if there are liabilities in your UTA, according to the process stated here. (View the liquidity order of margin assets) Step 3: Cancel All Cancel all Spot and Spot Margin orders. Any scenario in which the above steps result in bringing MMR to below 100% will halt the liquidation process, and further steps will not be executed. | ||
Portfolio Margin
The Portfolio Margin is based mainly on equity, initial margin, maintenance margin, and active order(s) value loss (depending on the conversion rate of different assets). Similar to Cross Margin mode, liquidation is triggered when the account MM rate hits 100%. For a detailed formula for calculating the margin, please refer to the Glossary (Unified Trading Account).
The liquidation process of the Unified Trading Account under the Portfolio Margin is as follows:
|
Margin Rate Level | |||
|
Account Initial Margin Rate (IMR) |
≥ (Selected Leverage − 1 / Selected Leverage) |
| |
|
≥ 100% |
| ||
|
Account Maintenance Margin Rate (MMR) |
= 100% |
Step 1: Cancel All Orders Step 2: Auto Repayment Auto repayment will be triggered if there are liabilities in your UTA, according to the process stated here. Assets or borrowings involved in Spot Hedging will not be used for repayment or repaid. (View the liquidity order of margin assets) Any scenario in which the above steps result in bringing MMR to below 100% will halt the liquidation process, and further steps will not be executed. | |
Spot Trading Rules
Under the Unified Trading Account, there are two (2) scenarios worth noting for Spot Margin trading:
1. The Spot Margin trading function is not enabled:
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When the IMR exceeds 100%, it is not allowed to place an order to buy lower conversion rate assets with higher ones.
2. The Spot Margin trading function is enabled:
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When the IMR reaches (Selected Leverage − 1 / Selected Leverage), Spot margin orders cannot be placed.
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When the MMR reaches 100%, margin assets will be sold to settle all liabilities.
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When the IMR exceeds 100%, it is not allowed to place an order to buy lower conversion rate assets with higher ones.
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When the available margin in your Unified Trading Account is more than zero, the user can automatically borrow and sell more amounts when placing an order.
Yes
No