Parameters
Cross Margin Modes
Parameters
In this section, you will learn:
- Definitions and calculations of different margin parameters
- How the different margin parameters work
To learn about the different margin modes, click to view the "Cross Margin Modes" tab on this page.
Collateral Assets
You can use your Cross Margin account assets as collateral assets for Cross Margin trading. For more details, please refer to the Margin Data page.
Assets Value
Your total asset value of the Cross Margin Account = Current total market value of all digital assets in the Cross Margin Account.
Equity (Position)
Equity is the net assets of the tokens and also the position you hold in your Cross Margin Account for each token. A non-zero, positive number indicates a long position, while a non-zero negative number indicates a short position.
Equity = Position = Balance - Debt
Collateral Value
Your collateral value = The total value of each asset after a tiered discount based on collateral ratio.
Collateral Value refers to the total value of all assets in your Cross Margin account (in USDT). It may be less than your assets value because it also takes into consideration the relevant Collateral Ratio (the percentage at which the relevant asset is valued).
For more calculation details, please refer to Binance Cross Margin Collateral Haircuts.
Dynamic Interest Rate
Simple interest accrues on an hourly basis. Interest is calculated first at the time of the successful advance of the relevant Margin Loan, which will be counted as the first hour. It will be calculated again at the next full hour (which will be counted as the second hour), and then every following full hour until the Margin Loan is repaid. The interest accrues at the start of every hour (e.g., 13:00, 14:00, etc.). This means that even if the Margin Loan is outstanding for less than an hour, interest will be charged for one full hour.
Interest = Principal Amount Outstanding * Hourly Interest * Number of Hours the Loan Has Been Outstanding
Example: Assuming the hourly interest is 0.001%.
User A borrows 1,000 USDC at 13:20 and repays at 14:15.
The interest rate calculation is calculated as 1,000 * 0.001% * 2 hours = 0.02 USDC.
User A was charged for two hours because interest is charged once for the borrowing between 13:20 to 13:59 and another from 14:00 to 14:15.
User A borrows 1,000 USDC at 13:20 and repays at 14:15.
The interest rate calculation is calculated as 1,000 * 0.001% * 2 hours = 0.02 USDC.
User A was charged for two hours because interest is charged once for the borrowing between 13:20 to 13:59 and another from 14:00 to 14:15.
You may repay your debts any time. Repayment shall be deemed payment of interest first, and after the interest is fully paid, repayment of the principal of the relevant Margin Loan.
Outstanding loan interest is included in the Margin Level calculation. Assuming no interest payments are made for an extended period, the Margin Level of your Cross Margin account may deteriorate, leading to the risk of a margin call or even forced liquidation.
Margin account interest rates are adjusted occasionally to reflect market conditions. You can find the latest interest rate on the Margin Data page.
Margin Level
You may only use the assets in your Binance Cross Margin account as collateral for Margin Loans. However, the digital assets in your other accounts are not included in the Margin calculation for Cross Margin trading.
The Margin Level of a Cross Margin Account is calculated as follows:
Margin Level = Total Asset Value of a Cross Margin Account / (Total Liabilities + Outstanding Interest)
For more information, please see Binance Margin Level and Margin Call.
Collateral Margin Level
Collateral Value refers to the total value of all assets in your Cross Margin account in USDT. It also takes into consideration the relevant Collateral Ratio (the percentage at which the relevant asset is valued). For more details on the Collateral Ratio for each digital asset, please refer to the Margin Data page and Binance Cross Margin Collateral Haircuts.
The Collateral Margin Level of the Cross Margin Account = Collateral Value / (Total Liabilities + Outstanding Interest)
To learn more about your Binance margin account, visit the Cross Margin FAQs page.
In this section, you will learn:
- Difference between Cross Margin Classic 3x and 5x, and Cross Margin Pro
- How to switch between different leverages or modes
Cross Margin Classic and Pro
Cross Margin Classic includes 3x and 5x. All new Cross Margin accounts are 5x by default. All parameters in ‘Parameter’ tab apply for Cross Margin Classic Mode. You can read more about risk control in Binance Margin Level and Risk Control.
Cross Margin Pro supports up to 10x, depending on your region. Cross Margin Pro has some different parameters to evaluate the account risk and borrow limit. You can read more information about how Cross Margin Pro works in Introduction to Binance Cross Margin Pro.
How to Switch between modes
On the Binance website, you can go to [Wallet] - [Margin Wallet], click on [Cross 5x] to adjust the leverage or switch the mode.
Or you can go to [Trade] - [Margin]. Scroll down to the order panel and click on the leverage button to adjust the leverage or switch to the other mode.
On the Binance app, you can go to [Trade] - [Margin] then tap [5x] to adjust.
Note:
- If you want to adjust the leverage level, your Margin Level needs to be higher than the Initial Risk Ratio.
- To adjust from 3x to 5x, your Margin Level needs to be higher than 1.25;
- To adjust from 5x to 3x, your Margin Level needs to be higher than 1.5.
- You can only adjust the leverage level once every minute.
- The Customize Margin Call Ratio will be removed automatically after adjusting the leverage level. You can customize the MCR again if needed.
Sub-accounts
The number of sub-accounts you can open is subject to your master account’s VIP level. You may refer to the ‘Frequently Asked Questions’ tab in this article to find out more.
The maximum loan limit of each sub-account is calculated using the master account’s limit divided by a denominator as shown in the table below:
VIP Level | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 |
Denominator | 5 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 |
However, the maximum loan limit of each sub-account for a VIP user with custom sub-account limit settings is 1/n of the master account’s limit, where n = number of sub-accounts.
Margin Service Terms
By using the Margin Services, you acknowledge that you have read, understood, and accepted all of the terms and conditions in the Margin Service Terms, and you acknowledge and agree that you will be bound by and will comply with the Margin Service Terms. This Cross Margin Trading Guide does not govern the Margin Services and is provided for your information and convenience only. In the event of any conflict between this Cross Margin Trading Guide and the Margin Service Terms, the Margin Service Terms shall prevail.
To learn more about your Binance margin account, visit the Cross Margin FAQs page.