To enhance user’s trading experience, AscendEX has implemented multi-asset collateral mechanism for perpetual futures contracts, or futures, supporting multiple assets for margin requirement.
I. Futures Margin Requirements
Multi-asset collateral mechanism supports 13 different assets - BTC, ETH, USDT, BCH, DOT, LINK, USDC, PAX, XRP, BNB, MATIC, TRX, ADA, UNI, ETC, FIL, FTT, VET and USDTR for margin requirements in the futures trading. As futures PL is calculated in USDT, a negative USDT value will be displayed in the asset balance when users incur a trading loss with only non-USDT collateral in their futures accounts, and a positive USDT value displayed for trading profit.
Here is an example: Assume a futures account has an asset balance of 1 BTC. When there is position loss of 1,000 USDT, the asset balance will be displayed as 1 BTC and -1,000 USDT.
1. Collateral Calculation for Futures Trading
The USDT value of collateral in the futures account is calculated by applying the Discount Factor, or haircut, to those transferred with Discount Factor per the following formula:
Collateral = Asset * Index Price * Collateral Discount Factor;
List of Discount Factor per Collateral Asset Type
View Collateral Info for details.
2. Index Price
The Index Price is computed by taking an average last trade price from the following five spot market trading platforms - AscendEX, Binance, Huobi, OKEx and Poloniex, and removing the highest and the lowest price caused by a single platform breakdown.
II. Asset Transfer for Futures Trading
1. Transfer in
Collateral is required to open a futures order. Users can transfer assets accepted from other accounts to the futures account before trading futures products.
2. Transfer out
The maximum asset available to transfer out from a futures account is calculated based on its current collateral usage in the following formula: max(0, min(Assets, Collateral Available / (Asset Index Price * Collateral Discount Factor)))
III. Collateral Calculation for Liquidation
- Assets in futures accounts will be calculated in USDT under a forced liquidation of positions.
- When the trading loss reaches the level of 30,000 USDT or 3 times available collateral, non-USDT collateral will be auto-deducted at each tranche of 10,000 USDT. The auto-deduction will continue till the position loss is lower than 30,000 USDT or 3 times available collateral. Portion of non-USDT collateral assets will be deducted based on their discount factors in descending order (see table above). Different non-USDT collateral assets at the same discount level will be deducted randomly in the process of an auto-deduction.