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Binance uses Margin Level to evaluate the risk level of your Margin account, and Borrow Margin Level and Transfer-out Margin Level to evaluate the borrow and transfer ability of your Cross Margin Account respectively.
1. Margin Level of Cross Margin Classic
Margin Level of Cross Margin Classic Account = Total Asset Value of Cross Margin Account / (Total Liabilities + Outstanding Interest), where:
Total Asset Value of Cross Margin Account = Current Total Market Value of All Digital Assets in Cross Margin Account
Total Liabilities = Current Total Market Value of All Outstanding Margin Loans in Cross Margin Account
Outstanding Interest = Amount of Each Margin Loan * Loan Time (in hours, at the time of the calculation) * Hourly Interest Rate - Deduction/Paid Interest
Your Margin Level is a key risk metric for your margin account. If it falls below a certain threshold, it will trigger margin calls and liquidations.
Please note that asset and liability values are calculated in BTC.
2. Borrow Margin Level
Borrow Margin Level determines the borrow ability of your Cross Margin account. It is calculated by the Collateral Value, the total value of all assets in your Cross Margin account in USDT. Collateral Value also takes into account each token’s respective Collateral Ratios, which is the percentage at which each asset is valued, and the Token's Index Price. For more details on the Collateral Ratio for each asset, please refer to the Margin Data page. For more details on the Mark Price, please refer to Mark Price.
Borrow Margin Level of Cross Margin Classic Account = Collateral Value / (Total Liabilities + Outstanding Interest), where:
Collateral Value = ∑ Net Asset Value of net positive positions (haircuts and index price applied) + 100% * ∑ (Total Liabilities (mark price applied) + Outstanding Interest) of tokens with net positive positions + 100% * ∑ Asset Value (mark price applied) of net negative positions (where assets > 0)
Net Asset Value of positive positions (haircuts and mark price applied): For tokens with assets (where assets > liabilities+interest), apply haircuts& mark price for each token after calculating their net asset values (asset - liabilities+interest) and aggregate.
(Total Liabilities (mark price applied) + Outstanding Interest) of tokens with net positive positions: For tokens with assets (where assets > liabilities+interest), aggregate the sum of liabilities (mark price applied) and interest. Please note that haircuts are not applied when aggregating the token asset value equivalent to its debt portion. Since 100% of asset value is recognized for this portion, collateral value calculations are to the advantage of users.
Asset Value of net negative positions (where assets > 0): For tokens with assets (where assets < liabilities+interest), aggregate the sum of these assets, without applying haircuts.
Total Liabilities = Current Total Market Value of All Outstanding Margin Loans in Cross Margin Account (mark price applied)
Outstanding Interest = Amount of Each Margin Loan * Loan Time (in hours, at the time of the calculation) * Hourly Interest Rate - Interest Paid
3. Transfer-out Margin Level
Transfer-out Margin Level determines the maximum amount you can withdraw from your Cross Margin account. It is calculated by the Collateral Value, the total value of all assets in your Cross Margin account in USDT. Collateral Value also takes into account each token’s respective Collateral Ratios, which is the percentage at which each asset is valued and the Token's Index Price. For more details on the Collateral Ratio for each asset, please refer to the Margin Data page. For more details on the Index Price, please refer to Index Price.
Borrow Collateral Margin Level of Cross Margin Classic Account = Collateral Value / (Total Liabilities + Outstanding Interest), where:
Collateral Value = ∑ Net Asset Value of net positive positions (haircuts and index price applied) + 100% * ∑ (Total Liabilities (index price applied) + Outstanding Interest) of tokens with net positive positions + 100% * ∑ Asset Value (index price applied) of net negative positions (where assets > 0)
Net Asset Value of positive positions (haircuts and index price applied): For tokens with assets (where assets > liabilities+interest), apply haircuts & index price for each token after calculating their net asset values (asset - liabilities+interest) and aggregate.
(Total Liabilities (index price applied) + Outstanding Interest) of tokens with net positive positions: For tokens with assets (where assets > liabilities+interest), aggregate the sum of liabilities (index price applied) and interest. Please note that haircuts are not applied when aggregating the token asset value equivalent to its debt portion. Since 100% of asset value is recognized for this portion, collateral value calculations are to the advantage of users.
Asset Value of net negative positions (where assets > 0): For tokens with assets (where assets < liabilities+interest), aggregate the sum of these assets, without applying haircuts.
Total Liabilities = Current Total Market Value of All Outstanding Margin Loans in Cross Margin Account (mark price applied)
Outstanding Interest = Amount of Each Margin Loan * Loan Time (in hours, at the time of the calculation) * Hourly Interest Rate - Interest Paid
*Please be noted that both Borrow Margin Level and Transfer-out Margin Level are calculated by Collateral Value / Debt Value. However, the collateral ratios and the prices they use are separate.
4. Different Margin Levels and their functions
Cross Margin Classic 3x:
Level
Trade
Borrow
Transfer Out
Margin Call
Liquidation
Transfer-out ML > 2
N/A
N/A
YES
N/A
N/A
Transfer-out ML <= 2
N/A
N/A
NO
N/A
N/A
Borrow ML > 1.5
N/A
YES
N/A
N/A
N/A
Borrow ML <= 1.5
N/A
NO
N/A
N/A
N/A
1.1<ML<=1.3
YES
NO
NO
YES
NO
ML <= 1.1
NO
NO
NO
NO
YES
Cross Margin Classic 5x:
Level
Trade
Borrow
Transfer Out
Margin Call
Liquidation
Transfer-out ML > 2
N/A
N/A
YES
N/A
N/A
Transfer-out ML <= 2
N/A
N/A
NO
N/A
N/A
Borrow ML > 1.25
N/A
YES
N/A
N/A
N/A
Borrow ML <= 1.25
N/A
NO
N/A
N/A
N/A
1.1<ML<=1.16
YES
NO
NO
YES
NO
ML <= 1.1
NO
NO
NO
NO
YES
*N/A means this Margin Level doesn’t apply to this function.
For more information on the effects of different Margin Levels, please refer to the Cross Margin Trading Guide.
5. Calculation Examples
Assume the margin parameters for BTC and ETH are as follows. And assume there’s no interest charged.
Borrow Collateral Ratio
Transfer-out Collateral Ratio
Max Mark Price
Min Mark Price
BTC
99.9%
99.9%
80,500
80,200
ETH
95%
95%
2,200
2,180
Scenario:
The user is holding 0.1 BTC and 1 ETH as collateral. Use Cross Margin 5x as an example, user’s BTC maximum borrow quantity would be:
(BTC asset value + USDT asset value + BTC max borrow value) / (BTC max borrow value) = 1.25 (max borrow bar for Cross Margin 5x)
1. Collateral Ratio applies to net collateral only.
2. Max Mark Price applies to debt tokens, and Min Mark Price applies to all the other tokens.
Margin Level of Isolated Margin
The assets in your Isolated Margin account can only be used as the collateral in the corresponding account. The assets in your other accounts (Cross Margin or other Isolated accounts) can’t be used as collateral.
1. Margin Level
Margin Level of Isolated Margin Account = Total Value of Assets in the Isolated Margin Account / (Total Liabilities + Unpaid Interest), where:
Total Value of Assets = Current Total Market Value of All Digital Assets in the Isolated Margin Account
Total Liabilities = Current Total Market Value of All Outstanding Margin Loans in the Isolated Margin Account
Outstanding Interest = Amount of Each Margin Loan * Loan Time (in hours, at the time of the calculation) * Hourly Interest Rate - Deduction/Paid Interest
2. Borrow Margin Level
Borrow Margin Level = Total Value of Assets in the Isolated Margin Account (mark price applied) / (Total Liabilities + Unpaid Interest), mark price applied, where:
Total Value of Assets = Current Total Value of All Digital Assets in the Isolated Margin Account, calculated by mark price.
Total Liabilities = Current Total Value of All Outstanding Margin Loans in the Isolated Margin Account, calculated by mark price.
Outstanding Interest = Amount of Each Margin Loan * Loan Time (in hours, at the time of the calculation) * Hourly Interest Rate - Deduction/Paid Interest
Please note that asset and liability values are calculated in quote currency.
3. Effects of Isolated Margin Level
Margin Level
Trading
Borrow
Transfer
Margin Call
Liquidation
Margin Level > 2
Y
N/A
Y
N
N
Margin Level > Initial Risk Ratio ≤ 2
Y
N/A
N
N
N
Borrow Margin Level ≤ Initial Risk Ratio
N/A
N
N/A
N/A
N/A
Margin Level > Liquidation Ratio ≤ Margin Call Ratio
Y
N
N
Y
N
Margin Level ≤ Liquidation Ratio
N
N
N
N
Y
Please note that the Initial Risk Ratio, Margin Call Ratio, and Liquidation Ratio vary for different leverage levels. Please refer to Tiered Leverage Function on Isolated Margin and Isolated Margin Trading Guide for more details. Please note that you won’t be able to update your margin positions during the liquidation process.
Disclaimer and Risk Warning: Digital token prices are subject to high market risk and price volatility. The information provided does not constitute, in any way, a solicitation or recommendation or inducement to buy or sell the products. The value of your investment may go down or up, and you may not get back the amount invested. Cross-margining contributes to providing greater leverage than a regular margin account, and greater leverage creates greater losses in the event of adverse market conditions. There is increased risk that a user's cross-margin positions will be liquidated involuntarily, causing possible loss. Comments and analysis do not constitute a commitment or guarantee on the part of Binance. You are solely responsible for your investment decisions and Binance is not liable for any losses you may incur. Past performance is not a reliable predictor of future performance. You should only invest in products you are familiar with and where you understand the risks. You should carefully consider your investment experience, financial situation, investment objectives and risk tolerance and consult an independent financial adviser prior to making any investment. This material should not be construed as financial advice. This product may not be available in certain countries and to certain users. This content is not intended for users/countries to which prohibitions/restrictions apply. For more information, see our Terms of Use and Risk Warning. To learn more about how to protect yourself, visit our Responsible Trading page.
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