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Rules for cross margin trading
1.General
1.1 These
regulations are created in line with the principles of justice, openness, and impartiality in order to
regulate margin trading and margin loans of crypto assets, preserve market order, and protect users'
legitimate rights and interests.
1.2 These
regulations serve as the foundation for Gate's margin trading service, which includes borrowing loans,
trading, and other margin-related activities on the platform.
1.3 These rules
apply to margin borrowing and cross-margin trading. The Gate Service Agreement and other relevant
provisions apply to cases where there are no specific provisions in this document.
2.Margin
2.1 Margin traders
can use their cross margin account's net balance as margin/collateral for cross margin trading.
2.2 All currencies
that are traded in the margin trading market are eligible as margin for margin loans. Please refer to
Announcements for updates.
2.3 In order to
control risk, Gate introduces margin adjustment factor to help control risks of users' accounts. Margin
adjustment factor refers to the factor that the margin currency is converted to its market price when
calculating its margin value.
2.4 In order to
ensure the safety of the funds, Gate will adjust the range of borrowable currencies and the margin
adjustment factor. Please refer to Announcements for updates.
2.5 For the purpose
of controlling risks, Gate puts a limit on the total assets of the cross margin account and has the right
to modify this limit according to circumstances.
3.Rules for Margin Loans
3.1 Maximum margin
loan limit refers to the maximum loan volume of the current margin trading currency. The user's current
maximum margin borrowing limit is calculated according to the user's maximum margin loan limit and
Gate's risk control measures. Maximum margin loan
limit = Min( [converted net balance of the cross margin account*(maximum leverage ratio - 1)-unrepaid
loans]/borrow factor, maximum borrowing limit of the currency).
Converted net balance
of the cross margin account = net balance of the cross margin account*margin adjustment
factor
3.2 Borrow factor
refers to the factor that converts the loaned currency to its market price when calculating the amount of
margin used.
3.3 After a margin
loan is successfully approved and the borrowed assets are sent to the user's cross margin account,
interest will begin to accumulate immediately. The user may use the loan for cross margin trading of the
approved currency pairs. (There is no fixed repayment date for cross margin loans. Users may repay the loans
at any time. The interest rate is being updated every hour and the total interest grows every hour. Please be
aware of the risks, repay the loan as early as possible and increase the margin when necessary.)
3.4 Auto-Borrow:
Users can enable Auto-Borrow on the margin trading page. If Auto-Borrow is enabled, the system will automatically borrow the funds you need for trading. Interest starts to accrue once the loan is borrowed.
3.5 In order to
ensure asset safety, Gate will adjust the range of borrowable currencies. Please refer to Announcements for
updates.
View the margin
adjustment factor and borrow factor of borrowable currencies by clicking on "View interest rate details"
4.Interest Rate
4.1 Interest
calculation rule: Interest grows on an hourly basis. The total of loan hours is the length of time where the
user holds the loan. If a user holds a loan for x hours and y(0<y<60) minutes, the total of loan hours
will be x+1.
The formula: interest = loan(principal)*(daily interest rate/24)*total of loan hours
4.2 Users can repay
the loan in advance partially or fully and the interest will be calculated according to the actual length of
time. Repayment goes to cover the interest first. Only after the interest is fully paid, will the rest of the
repayment cover the principal.
4.3 The interest,
when not repaid, will be included when calculating the margin level. With outstanding interest accruing over a long
period of time, the margin level may fall below the threshold, which will trigger liquidation. To eliminate this
possibility, users should pay off the interest regularly and keep a safe balance in their margin
accounts.
4.4 Gate will
adjust the interest rate every hour according to market trends.
5.Repayment
5.1 Users can
manually select the loans to repay. When entering the repayment volume, users can choose to either repay the
loan fully or partially. Interest must be covered first before users can pay off the loan fully. In the next
hour, interest will be calculated with the latest total loan volume.
5.2 You can repay with a different coin from the liability coin. Cross-currency repayment and “Repay All” are supported. Please ensure your account has sufficient balance when making a repayment.
5.3 Auto-Repay:
Users can enable Auto-Repay on the margin trading page. Funds received from filled orders will be used to auto-repay the loans. Auto-Repay will only be activated when the order is fully filled.
6.Risk Control
6.1 Margin traders
use the net balance in their cross margin accounts as margin/collateral. Assets in other accounts do not count as
collateral unless transferred to their cross margin accounts.
6.2 Gate has the
authority to adjust the maximum margin value for each borrowable currency. The maximum margin value is
used to calculate the margin level of cross margin accounts, buying limit and withdrawal limit.
6.3 Gate has the
authority to monitor the margin level of the users' cross margin accounts and take appropriate actions in
response to changes of the margin level. margin level of the
cross margin account = total balance in the cross margin account/(loan volume + outstanding interest)
The market value
conversions all use USDT as the price unit. Total balance in the
cross margin account = total market value of all crypto assets currently in the cross margin
account Loan volume = total
market value of all outstanding margin loans of the cross margin account Outstanding interest =
total market value of all margin loans* total of loan hours*hourly interest rate - paid
interest
6.4 Margin level &
Actions When margin level >
2, users can trade, borrow loans and withdraw funds from margin account (as long as the margin level stays above
150% after the withdrawal). Withdrawable funds =
Max[(margin level-150%)*(total loan volume+outstanding interest)/last price of USDT,0] When 1.5＜ margin level ≤2, users can trade and borrow loans, but can't withdraw funds from margin account. When 1.3＜ margin level
≤1.5, users can trade, but can't borrow loans or withdraw funds. When 1.1＜ margin level
≤1.3, users can trade, but can't borrow loans or withdraw funds. Users will be recommended to increase
margin to avoid liquidation and notified of potential risks via email and SMS. Notifications will be sent
every 24 hours. Upon receiving the notifications, users ought to repay the loans (partially or fully) or
transfer more funds to margin account to make sure the margin level stays above 130%. When margin level ≤1.1, liquidation will be triggered. All assets from the cross margin account will be used to pay back the
loans and interests. The user will be notified in an email or an SMS message of the liquidation.
6.5 Users should be
aware of the risks of margin trading and promptly adjust the position holding ratio to avoid risks. All losses
resulting from liquidation shall be covered solely by the user who owns the margin account, including
but not limited to losses made in the following scenario: The user fails to conduct appropriate actions in
time after receiving a warning notice from Gate because the margin level drops to the liquidation threshold
right after it triggers warning notifications.
6.6 Gate manages
margin trading and its risks smartly. When margin trading and margin loans enter the pre-set warning range,
Gate will take necessary risk prevention measures, including but not limited to enforcing liquidation and
restrictions on transferring funds, going long/short and trading on margin.
6.7 Gate monitors
the total market value of cross margin loans. When the total margin loan volume reaches the limit, Gate
will temporarily disable the account from borrowing margin loans until the total market value is below the
limit.
6.8 According to the
real-time market trends and volatility, Gate will change the pre-set maximum margin loan limit and total
margin loan volume on the platform.
Gate reserves the
right to finally interpret Rules for Cross Margin Trading
