Futures

Introduction to Bitget USDT-M Futures in multi-asset mode

2024-12-26 08:380128

1. What is USDT-M Futures in multi-asset mode?

USDT-M Futures offer both single-asset margin mode and multi-asset margin mode. In single-asset margin mode, only USDT is used as margin, while in multi-asset margin mode, other cryptocurrencies can be used as margin for USDT-M Futures trading. This eliminates the need to allocate margin separately for each futures trading position, reducing overall margin consumption. With this feature, users can manage a single, unified multi-asset margin position instead of multiple separate ones, reducing both management costs and complexity.

In multi-asset mode, you can transfer USDT, BTC, ETH, SOL, XRP, PEPE, USDC, and BGB as margin. Future additions will be announced in advance.

2. What are multi-assets and available margin?

a. How are multi-asset margins calculated?

In the multi-asset mode, the value of coins used as margin will be reduced in accordance with the haircut.

Multi-assets = (Equity of coin 1 × haircut of coin 1) + (Equity of coin 2 × haircut of coin 2) +...+ (Equity of coin N × haircut of coin N)Coin equity = Account assets of the coin in USDT + Unrealized PnL

For example: If you have 0.1 BTC and 1000 USDT, assuming that the index price of BTC is 10,000 USDT, with a haircut of 0.9 for 1000 USDT worth of BTC, then the BTC equity is calculated as: 0.1 × 10,000 + 0 = 1000 USDT. The unrealized PnL of USDT-M Futures is calculated in USDT so the unrealized PnL of BTC is 0. Given that USDT equity is 1000 USDT, multi-assets will be calculated as: BTC equity × BTC haircut + USDT equity × USDT haircut = 900 + 1000 = 1900 USDT.

b. What is the available margin?

Each coin has an available margin, which is calculated by the following formula: Available margin for the coin = account assets of the coin – frozen amount of the coin – margin used for the larger positions + unrealized PnL of the coin under cross margin mode.

In USDT-M Futures in multi-asset mode, if you have 0.1 BTC, with a index price of 10,000 USDT and a haircut of 0.9; your account assets for USDT are 1000 USDT, with the unrealized PnL of 200 USDT and position margin of 500 USDT; then the BTC available margin is calculated as: 0.1 × 1000 × 0.9 = 900 USDT. In USDT-M Futures, with USDT as the settlement coin, there are no PnL or frozen asset in BTC. The available margin for USDT is calculated as: 1000 + 200 – 500 = 700 USDT.

Reference:

• Haircut for USDT-M positions in multi-asset mode

• Glossary of USDT-M Futures in multi-asset mode

3. What is the conversion of multi-asset mode?

This document outlines how Bitget converts non-USDT coins to USDT in a fast and cost-efficient manner for USDT-M positions in multi-asset mode to mitigate trading risks. An conversion rate will be applied during the convert. Converted amount = converted quantity × index price of the coin × conversion rate. The conversion rate is tiered, meaning the larger the amount, the lower the conversion rate.

There are three scenarios for conversion:

• Switching from multi-asset mode to single-asset mode: If users have insufficient USDT, they can convert other coins in their USDT-M futures account to USDT.

• Debt exceeding individual debt limit: When a user’s debt surpasses their individual debt limit, risk control is triggered, and other coins are converted to repay the debt.

• Risk of liquidation or partial liquidation: In such cases, other coins will be converted to repay the debt to reduce the risk.

Reference: Conversion of USDT for USDT-M positions in multi-asset mode

4. What are debts and transfers?

a. Debt and interest

For USDT-M positions in multi-asset mode, all profits, transaction fees, and funding fees are settled in USDT. If the USDT balance is insufficient, a USDT debt is incurred:

Debt = min (0, USDT equity)

Interest will be charged on the debt (if there is debt). The amount subject to interest is calculated as: debt − interest-free amount. For unrealized losses, the interest-free amount is capped at: min (abs (unrealized loss), interest-free limit).

b. Interest-free amount

The interest-free amount is applicable to debts incurred by unrealized losses, calculated as: interest-free amount = min (abs (min (0, unrealized PnL)), interest-free limit). Interest-bearing amount = max (0, (debts – interest-free amount)), with the interest-free limit being 20,000 USDT.

c. Interest

The interest-bearing amount is calculated by multiplying the corresponding interest rate, with interest charged every hour. At the time of charging interest, the interest-bearing amount will be evaluated for the charge. Debt details is retrieved at the start of each hour (UTC+8). For example, interest is charged once on the hour. At 8:00 AM (UTC+8), the interest amount to be paid is 100 USDT. Therefore, the 100 USDT debt will be charged.

d. Calculation of transferable amounts

If the unrealized PnL under cross margin mode is greater than 0, the transferable amount = available amount − unrealized profit − trading bonus.

If the unrealized PnL under cross margin mode is less than 0, the transferable amount = available amount − trading bonus.

Transferable amount of a coin = min (transferable amount ÷ index price of the coin, net quantity of the coin).

USDT net amount = USDT balance + unrealized PnL − USDT margin reserved for pending orders − margin used for the larger position of the coin.

Net quantity of other coins = balance of the coin.

e. Calculation of transferable amount

Transferable amount = limit − net inbound transfer amount

Limit = min (individual limit, platform limit)

Reference: Debt repayment and fund transfer for USDT-M positions in multi-asset mode

5. How to use the multi-asset mode?

Users can switch between single-asset mode and multi-asset mode without closing existing positions if certain conditions are met. To switch from single-asset mode to multi-asset mode, you must be in cross-margin mode. For positions under isolated margin mode, switch to cross-margin mode first. To switch from multi-asset mode to single-asset mode, ensure the USDT asset covers the margin required for current positions and pending orders, and that the MMR is below 80%.

a. How to switch on the website

On the website, you can switch asset modes directly in the "Settings" section or through the margin section on the trading page, as shown in the image below.

Introduction to Bitget USDT-M Futures in multi-asset mode image 0