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What Asset Margining Modes are there?

  • Updated

BitMEX supports two margining modes: Single Asset Margin and Multi Asset Margin. Each contract settles in either Bitcoin (XBT) or Tether (USDT). Single Asset Margin requires margin in the settlement currency, while Multi Asset Margin lets multiple currencies support your margin requirements with haircuts applied.

 

How does Single Asset Margin work?

In Single Asset Margin mode, opening a position requires deposited margin that matches the settlement currency of the contract. Your account must maintain a positive excess margin balance in each settlement currency at all times. If the balance falls below the required level, the position will be liquidated.

 

How does Multi Asset Margin work?

In Multi Asset Margin mode, balances in a selection of currencies count towards an account-level margin balance. Each currency can support margin requirements for contracts settled in either USDT or XBT. However, haircuts are applied to reflect the additional risk BitMEX takes on by accepting different currencies as margin.

The current margin currencies and their haircuts can be found here: https://www.bitmex.com/app/multiAssetMargining#Multi-Asset-Margin

The Collateral Value Ratio is defined as (1 - Haircut). Because the haircut varies by margin currency and settlement currency, BitMEX optimises your available margin currency balances against your margin requirements. If they do not meet your margin requirements, your positions will be liquidated.

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