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How to Calculate the Maximum Borrow Limit on Cross Margin Pro?
2024-09-25 21:44
New Pro Mode
Old Pro Mode
Last Updated: 13 Dec 2024
Disclaimer: In compliance with MiCA requirements, unauthorized stablecoins are subject to certain restrictions for EEA users. For more information, please click here.
Note: At 2025-01-21 10:00 (UTC), Binance Margin will adjust the Initial and Maintenance Margin requirements on Cross Margin Pro to enhance the capital efficiency of users’ margin assets. Additionally, how Margin Level and other Cross Margin Pro parameters are calculated will be changed: collateral haircuts and open order losses will now be factored into these calculations. For the previous version of this FAQ, please refer to the second tab above (‘Old Pro Mode’).
Starting from 2024-12-17 00:00 (UTC), new and existing Cross Margin Pro users must complete an updated questionnaire and agree to the updated Margin Terms in order to use Cross Margin Pro. These requirements are in place to ensure that users are aware of and understand the upcoming changes to Cross Margin Pro, and make necessary changes to their positions. You may complete the questionnaire here.
If you do not meet the requirements above, existing Cross Margin Pro accounts will be subject to the following conditions:
From 2024-12-19 00:00 (UTC) onwards, Binance Margin will disable borrowing on these Cross Margin Pro accounts.
From 2025-01-15 00:00 (UTC) onwards, Binance Margin will switch these Cross Margin Pro accounts to Cross Margin Classic Mode. Binance Margin may also conduct partial liability repayments before this switch on accounts which are at risk of having Margin Levels below the Margin Call threshold in Classic Mode.
Impacted users may resume usage of Cross Margin Pro after they have completed the requirements above.
In this article, you will learn:
How to calculate the maximum borrow limit on Cross Margin Pro
Examples on how to calculate your limits
How to calculate Maximum Borrowable Amount?
The Cross Margin Pro maximum borrow limit is determined by your available margin amount. The maximum borrow amount of each token = Available Margin Amount / Initial Margin Rate of that token.
However, Position Tiers, Collateral Ratio and Open Order Loss may affect available margin and initial margin rates, which consequently changes the maximum borrowable amount for an account.
Example 1: Borrowing tokens across single or multiple Position Tiers
Note: The Position Tiers, Collateral Ratio and Index Price parameters used in this example are meant for illustrative purposes only. You should refer to the Cross Margin Pro Position Tiers and Cross Margin Collateral Ratio sections on the Margin Data page for the latest parameters.
Liability Coin
Tier
Max. Leverage
Liability Value in USDT
Maintenance Margin Rate
Initial Margin Rate
BTC
1
20x
0 - 200,000
2.50%
5.27%
2
10x
200,000 - 500,000
5.00%
11.12%
3
5x
500,000 - 1,000,000
9.00%
25.00%
4
3x
1,000,000 - 2,000,000
10.00%
50.00%
USDT
1
20x
0 - 200,000
2.50%
5.27%
2
10x
200,000 - 500,000
5.00%
11.12%
3
5x
500,000 - 1,000,000
9.00%
25.00%
4
3x
1,000,000 - 2,000,000
10.00%
50.00%
SOL
1
20x
0 - 50,000
2.50%
5.27%
2
10x
50,000 - 100,000
5.00%
11.12%
3
5x
10,000 - 200,000
9.00%
25.00%
4
3x
200,000 - 500,000
10.00%
50.00%
Collateral Coin
Tier
Amount
Collateral Ratio
BTC, USDT
1
0 - 1,000,000
1
2
1,000,000 - 2,000,000
0.975
3
2,000,000 - 3,000,000
0.95
4
3,000,000 - 4,000,000
0.9
5
4,000,000 - 5,000,000
0.85
SOL
1
0 - 10,000
0.8
2
10,000 - 200,000
0.5
Basic Parameters for Further Calculations
Let’s calculate how much you can borrow using 2 different accounts as examples:
Parameter
Account 1
Account 2
Position
Collateral: 20,000 USDT
Liability: 10,000 USDT
Collateral: 50,000 USDT
Liability: 25,000 USDT
∑Collateral Value
= 20,000*1*1
= 20,000 USDT
= 50,000*1*1
= 50,000 USDT
∑(Liability + Interest)
= 10,000*1
= 10,000 USDT
= 25,000*1
= 25,000 USDT
∑Net Collateral
= 20,000 - 10,000
= 10,000 USDT
= 50,000 - 25,000
= 25,000 USDT
∑Open Order Loss
= 0 (no open orders)
= 0 (no open orders)
∑Maintenance Margin
= 10,000*2.50%
= 250
= 25,000*2.50%
= 625
∑Initial Margin
= 10,000*5.27%
= 527
= 25,000*5.27%
= 1317.5
Margin Level
= (10,000 - 0) / 250
= 40
= (25,000 - 0) / 625
= 40
Available Margin
= Max(0, 10,000 - 0 - 527)
= 9,473
= Max(0, 25,000 - 0 - 1317.5)
= 23,682.5
Additional BTC max borrowable amount
= Available Margin / Initial Margin Rate of assets to be borrowed at its Position Tier(s)
= 9,473 / 5.27% at Tier 1
= 179753.32068311 USDT
= ~3.59 BTC
= Available Margin / Initial Margin Rate of assets to be borrowed at its Position Tier(s)
Calculating the additional BTC max borrowable amount in Account 2 is not as straightforward as Account 1, due to the borrowable amounts falling into more than one Position Tier. In this case, the maximum borrowable amount fully utilizes Position Tier 1 of BTC and part of Position Tier 2.
1. The available margin needed to borrow 200,000 USDT worth of BTC is first calculated using 200,000 * 5.27% = 10,540.
2. The available margin once Position Tier 1 is used up, can be calculated using the original available margin (23,682.5) deducted by the available margin needed to fully borrow 200,000 USDT worth of BTC (10,540), which brings us to 13,142.5 in available margin.
3. The remaining borrowable amounts can thus be calculated using 13,142.5 / 11.12%, where 11.12% is the initial margin rate of Tier 2, which results in ~118187.9496 USDT worth of BTC.
4. The total maximum borrowable amount for BTC in Account 2 is therefore 200,000 + 118187.9496 = 318187.9496 USDT, equivalent to approximately 6.36 BTC.
Example 2: Open Order Loss reducing maximum borrowable amount
Note: The Position Tiers, Collateral Ratio and Index Price parameters used in this example are meant for illustrative purposes only. You should refer to the Cross Margin Pro Position Tiers and Cross Margin Collateral Ratio sections on the Margin Data page for the latest parameters.
Basic Parameters for Further Calculations
Let’s examine how Open Order Loss may reduce the available margin of an account and consequently its maximum borrowable amount:
Parameter
Without Open Order Loss
Open Order Loss after placing an order to buy 100 SOL using 20,000 USDT
Position
Collateral: 50,000 USDT
Liability: 25,000 USDT
Collateral: 50,000 USDT
Liability: 25,000 USDT
∑Collateral Value
= 50,000*1*1
= 50,000 USDT
= 50,000*1*1
= 50,000 USDT
∑(Liability + Interest)
= 25,000*1
= 25,000 USDT
= 25,000*1
= 25,000 USDT
∑Net Collateral
= 50,000 - 25,000
= 25,000
= 50,000 - 25,000
= 25,000
∑Open Order Loss
= 0 (no open orders)
= = max(0, collateral value of 20,000 USDT to be sold - collateral value of 100 SOL to be bought)
Collateral Value of 20,000 USDT
= 20,000*1*1
= 20,000 USDT
Collateral Value of 100 SOL
= 50*200*0.8 + 50*200*0.5
= 13,000 USDT
Open Order Loss
= max(0, 20,000 - 13,000)
= 7,000
∑Maintenance Margin
= 25,000*2.50%
= 625
= 25,000*2.50%
= 625
∑Initial Margin
= 25,000*5.27%
= 1317.5
= 25,000*5.27%
= 1317.5
Margin Level
= (25,000 - 0) / 625
= 40
= (25,000 - 7,000) / 625
= 28.8
Available Margin
= Max(0, 25,000 - 0 - 1317.5)
= 23,682.5
= Max(0, 25,000 - 7,000 - 1317.5)
= 16,682.5
Additional BTC max borrowable amount
= Available Margin / Initial Margin Rate of assets to be borrowed at its Position Tier(s)
In this example, the Open Order Loss caused by placing an order to buy SOL using USDT has reduced the available margin, even before the order was filled. A lower available margin will therefore result in lower maximum borrowable amounts.
Disclaimer and Risk Warning: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. Digital asset 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.
Products and services referred to here may not be available in your region.
Note: On 2025-01-21 10:00 (UTC), Cross Margin Pro will introduce new Initial and Maintenance Margin requirements. Additionally, formulas used to calculate Margin Level and other parameters will be updated to take into account collateral haircuts and open order losses. This FAQ will no longer be valid after the changes have taken effect. Please refer to the first tab for the latest version of Cross Margin Pro Mode (‘New Pro Mode’).
In this article, you will learn:
How to calculate the max borrow limit of Cross Margin Pro
Two examples of Max borrow amount calculation
How to calculate the Max Borrow Limit
The Cross Margin Pro maximum borrow limit is determined by your available margin amount. The maximum borrow amount of each token = Available Margin Amount / Initial Margin Rate of that token. See the examples below on how maximum borrow amounts are calculated.
Example 1: A single liability coin with a single leverage tier
Note: The illustration below is a purely hypothetical example to demonstrate how Margin Level and Collateral Margin Level are calculated, as well as their impacts, in the Cross Margin Pro mode.
To calculate the maximum amount that can be borrowed for a specific liability coin and the Margin Level in the Cross Margin Pro mode, both the tiered collateral ratio and the Liability Coin Leverage table are required. Suppose the hypothetical collateral ratio and the liability coin maintenance/initial margin rate are as follows. Also, assume that the Interest is zero.
Liability Coin
Tier
Max. Leverage
Liability Value in USDC
Maintenance Margin Rate
Initial Margin Rate
BTC
1
10x
0 - 1,000,000
2%
11.12%
2
8x
1,000,000 - 2,000,000
3%
14.29%
3
5x
2,000,000 - 3,000,000
4%
25%
4
3x
3,000,000 - 4,000,000
5%
50%
USDC
1
10x
0 - 1,000,000
3%
11.12%
2
8x
1,000,000 - 2,000,000
4%
14.29%
3
5x
2,000,000 - 3,000,000
5%
25%
4
3x
3,000,000 - 4,000,000
6%
50%
Collateral Coin
Tier
Amount
Collateral Ratio
BTC, USDC
1
0 - 1,000,000
1
2
1,000,000 - 2,000,000
0.975
3
2,000,000 - 3,000,000
0.95
4
3,000,000 - 4,000,000
0.9
5
4,000,000 - 5,000,000
0.85
Suppose under the current scenario, User A initially has 1 BTC, and has already borrowed 1 BTC.
User A’s Coin Holding
Position
Liability
Index Price
BTC
2
1
10,000
USDC
0
0
1
The below table demonstrates, in the current scenario and after reaching the maximum borrowable amount of USDT, how the Cross Margin Pro mode’s Margin Level, Collateral Margin Level, and maximum borrowable amount in USDT are calculated, as well as their impacts.
Collateral Margin Level = 2 The user is restricted from transferring funds out of the margin account.
Collateral Margin Level The user is restricted from transferring funds out of the margin account.
Max Transfer Out Amount
0
0
Convert to Cross Margin Classic (5X)
Yes Collateral Margin Level > 1.25
No
Since ∑Asset/∑Liability = 1.19, Collateral Margin Level
Available Margin Amount and Borrowable Amount
Available Margin Amount
Available Margin Amount will be displayed at the wallet page.
= Max (∑Net Collateral - ∑Initial Margin, 0)
= Max (∑Collateral Value - ∑Liability - ∑Initial Margin, 0)
= Max ( 20,000 - 10,000 - 1,112, 0) = 8,888 USDC
Available Margin Amount will be displayed at the wallet page.
= Max (∑Net Collateral - ∑Initial Margin, 0)
= Max (∑Collateral Value - ∑Liability - ∑Initial Margin, 0)
=Max (99,928 - 89,928 - 10,000, 0) = 0 USDC
Additional BTC max borrowable amount
= Available Margin Amount / Initial Margin Rate
= 8,888 / 11.12% = 79,928 USDC
With the same asset amount, the borrowable amount is higher than in the Cross Margin Classic mode.
= Available Margin Amount / Initial Margin Rate
= 0
Example 2: Liability coins impacted by leverage tiering and collateral haircuts
Note: The illustration below is a purely hypothetical example to demonstrate how Margin Level and Collateral Margin Level are calculated, as well as their impacts, in the Cross Margin Pro mode.
To calculate the maximum amount that can be borrowed for a specific liability coin and the Margin Level in the Cross Margin Pro mode, both the tiered collateral ratio and the liability maintenance rate are required. Suppose the hypothetical collateral ratio and the liability coin maintenance/initial margin rate are as follows. Also, assume that the Interest is zero.
Liability Coin
Tier
Max. Leverage
Liability Value in USDT
Maintenance Margin Rate
Initial Margin Rate
BTC
1
10x
0 - 1,000,000
2%
11.12%
2
8x
1,000,000 - 2,000,000
3%
14.29%
3
5x
2,000,000 - 3,000,000
4%
25%
4
3x
3,000,000 - 4,000,000
5%
50%
5
2x
4,000,000 - 5,000,000
8%
100%
ETH
1
8x
0 - 2,000,000
5%
14.29%
2
5x
2,000,000 - 3,000,000
8%
25%
3
3x
3,000,000 - 4,000,000
10%
50%
Collateral Coin
Tier
Amount
Collateral Ratio
BTC, USDC
1
0 - 1,000,000
1
2
1,000,000 - 2,000,000
0.975
3
2,000,000 - 3,000,000
0.95
4
3,000,000 - 4,000,000
0.9
5
4,000,000 - 5,000,000
0.85
ETH
1
0 - 1,100,000
1
2
1,100,000 - 2,100,000
0.975
3
2,100,000 - 3,100,000
0.95
4
3,100,000 - 4,100,000
0.9
5
4,100,000 - 5,100,000
0.85
Suppose under the current scenario, User A initially has 49 BTC and 49 ETH, and has already borrowed 50 BTC and 50 ETH.
User A’s Coin Holding
Position
Liability
Index Price
BTC
99
50
10,000
ETH
99
50
1,000
The below table demonstrates, in the current scenario and after reaching the maximum borrowable amount of BTC, how the Cross Margin Pro Margin Level, Collateral Margin Level, and maximum borrowable amount in USDC are calculated, as well as their impacts.
Basic Parameters for Further Calculations
Initial Borrow of 50 BTC and 50 ETH
Additional Borrow of 222.50 BTC (The Max. Borrowable Amount)
(See the Liability Coin Leverage table above. Total BTC borrow amount is 272.50142857, which falls under Tier 3. ETH borrow amount is 50, also falls under Tier 1)
476,255 / 11.12% = 4,282,599, above the Tier 4 borrow range
The maximum borrowing amount for BTC is not as straightforward as in Example 1. You may need to attempt 1-2 times to determine the tier in which the maximum borrowing amount falls, in order to reduce the Available Margin Amount to zero.
The Cross Margin Pro mode is more capital-efficient than the Cross Margin Classic mode. With the same net equity amount, the borrowable amount in the Cross Margin Pro mode is higher.
0
Disclaimer and Risk Warning: Digital asset 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. This content is not intended for users/countries to which prohibitions/restrictions apply. For more information, see our Terms of Use and Risk Warning.
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