Under the Multi-Assets mode, auto exchange will happen under 3 circumstances:
1. For Regular and VIP 1 Users, when Asset Wallet Balance is less than Auto-ExchangeThreshold (-5,000 USDT/USDC or - 0.1 BTC); For all other users, when Asset Wallet Balance is less than Auto-ExchangeThreshold (-10,000 USDT/USDC or - 0.1 BTC);
2. When Users get liquidated, Auto-Exchange will be immediately triggered if the Asset Wallet balance is not enough to cover the deficit.
3. When Users do not have existing positions or open orders, the system will continuously calculate the LTV (loan to value). When LTV ≥ 0.995, Auto-Exchange will be triggered.
For example, when a Regular User's USDC balance is -5,000 USDC, Auto-Exchange will be triggered. 5,000 USDC / 97.5% = 5,128.20 USDC of the BTC will be changed to USDC to balance the wallet after taking into consideration of the 2.5% haircut for BTC.
If there are multiple assets under Multi-Asset Mode, when the Auto-Exchange is triggered, they will be automatically converted to negative assets according to the proportion of each asset. In order to avoid Auto-Exchange, users can transfer in or exchange assets to reduce negative balance before it breaches the Auto-Exchange threshold or LTV Trigger (if User has no exisiting positions nor open orders).