Cross Margin
Isolated Margin
Cross Margin
Binance uses Margin Level to evaluate the risk level of your Margin account, and Collateral Margin Level to evaluate the borrow and transfer ability of your Cross Margin account.
1. Margin Level of Cross Margin
Margin Level of Cross Margin Account = Total Asset Value of Cross Margin Account / (Total Liabilities + Outstanding Interest), where:
- Total Asset Value of Cross Margin Account = Current Total Market Value of All Digital Assets in Cross Margin Account
- Total Liabilities = Current Total Market Value of All Outstanding Margin Loans in Cross Margin Account
- Outstanding Interest = Amount of Each Margin Loan * Loan Time (in hours, at the time of the calculation) * Hourly Interest Rate - Deduction/Paid Interest
Your Margin Level is a key risk metric for your margin account. If it falls below a certain threshold, it will trigger margin calls and liquidations.
Please note that asset and liability values are calculated in BTC.
2. Collateral Margin Level
Collateral Margin Level determines the maximum amount you can withdraw from your Cross Margin account. It is calculated by the Collateral Value, the total value of all assets in your Cross Margin account in USDT. Collateral Value also takes into account the relevant Collateral Ratio, the percentage at which the relevant asset is valued. For more details on the Collateral Ratio for each asset, please refer to the Margin Data page.
Collateral Margin Level of Cross Margin Account = Collateral Value / (Total Liabilities + Outstanding Interest), where:
- Collateral Value = Current Total Market Value of All Digital Assets in Cross Margin Account * Collateral Ratio (calculated separately for each asset and then aggregated)
- Total Liabilities = Current Total Market Value of All Outstanding Margin Loans in Cross Margin Account
- Outstanding Interest = Amount of Each Margin Loan * Loan Time (in hours, at the time of the calculation) * Hourly Interest Rate - Interest Paid
3. Margin Level and Collateral Margin Level
Cross Margin 3X | Trading | Borrow | Transfer | Margin Call | Liquidation |
Collateral Margin Level > 2 | Y | Y | Y | N | N |
1.5 < Collateral Margin Level ≤ 2 | Y | Y | N | N | N |
Collateral Margin Level ≤ 1.5 | Y | N | N | N | N |
1.1 < Margin Level ≤ 1.3 | Y | N | N | Y | N |
Margin Level ≤ 1.1 | N | N | N | N | Y |
Cross Margin 5X | Trading | Borrow | Transfer | Margin Call | Liquidation |
Collateral Margin Level > 2 | Y | Y | Y | N | N |
1.25 < Collateral Margin Level ≤ 2 | Y | Y | N | N | N |
Collateral Margin Level ≤ 1.25 | Y | N | N | N | N |
1.1 < Margin Level ≤ 1.16 | Y | N | N | Y | N |
Margin Level ≤ 1.1 | N | N | N | N | Y |
For more information on the effects of Collateral Margin Level, please refer to the Cross Margin Trading Guide.
Please note that if your Margin Level is not affected by the haircut, it will be equal to your Collateral Margin Level. You’ll only see a Margin Level on your wallet page.
Example
For Cross Margin 5X: User A holds 50,000,000 USDT equivalent of BNB and borrowed 20,000,000 USDT. Suppose the BNB Collateral Ratio is 70%, and the interest fee is ignored.
- Margin Level = 50,000,000 / 20,000,000 = 2.5
- Collateral Margin Level = (50,000,000 * 70%) / 20,000,000 = 1.75
In this case, User A’s Collateral Margin Level < 2 but >1.25, they can’t transfer any asset out of their Margin account, but they can still borrow and trade. As User A’s Margin Level = 2.5, they will not receive margin calls and will not be liquidated.
Margin Level of Isolated Margin
The assets in your Isolated Margin account can only be used as the collateral in the corresponding account. The assets in your other accounts (Cross Margin or other Isolated accounts) can’t be used as collateral.
Margin Level of Isolated Margin Account = Total Value of Assets in the Isolated Margin Account / (Total Liabilities + Unpaid Interest), where:
- Total Value of Assets = Current Total Market Value of All Digital Assets in the Isolated Margin Account
- Total Liabilities = Current Total Market Value of All Outstanding Margin Loans in the Isolated Margin Account
- Outstanding Interest = Amount of Each Margin Loan * Loan Time (in hours, at the time of the calculation) * Hourly Interest Rate - Deduction/Paid Interest
Effects of Isolated Margin Level
Margin Level | Trading | Borrow | Transfer | Margin Call | Liquidation |
> 2 | Y | Y | Y | N | N |
> Initial Risk Ratio ≤ 2 | Y | Y | N | N | N |
> Margin Call Ratio ≤ Initial Risk Ratio | Y | N | N | N | N |
> Liquidation Ratio ≤ Margin Call Ratio | Y | N | N | Y | N |
≤ Liquidation Ratio | N | N | N | N | Y |
Please note that the Initial Risk Ratio, Margin Call Ratio, and Liquidation Ratio vary for different leverage levels. Please refer to Tiered Leverage Function on Isolated Margin and Isolated Margin Trading Guide for more details. Please note that you won’t be able to update your margin positions during the liquidation process.