Under the Binance Portfolio Margin Pro Program, the Maintenance Margin amount and ratio are calculated on a unified basis. For this reason, the initial margin requirement no longer applies.
The Unified Maintenance Margin Ratio of the Binance Portfolio Margin Pro account is defined as uniMMR.
Details of the uniMMR calculation:
Parameter | Description |
uniMMR | Unified Account Equity / Unified Maintenance Margin Amount |
∑Equity | Unified Account Equity |
MM | Unified Maintenance Margin Amount |
∑MarginMM | ∑MarginMM = ∑ (Loan * MMR) The Maintenance Margin Ratio (MMR) varies based on the chosen leverage:*
*Binance reserves the right to adjust these figures if needed. Users will receive notifications of such changes. |
Parameter | Formula |
∑Equity | ∑min((MarginAsset -MarginLoan+ futuresAsset + futuresUnrealPnL)*assetIndexPrice*collateralRate, (MarginAsset -MarginLoan + futuresAsset + futuresUnrealPnL)*assetIndexPrice) |
MM | ∑Maintenance Margin =∑ futuresMM*assetIndexPrice + ∑MarginMM*assetIndexPrice |
Unified Account Equity means the the sum of (1) the account balance of your nominated Futures Accounts, (2) unrealized profits (if any) minus any unrealized losses (if any) in respect of each position of your USDⓈ-M Futures and COIN-M Futures, (3) Total Assets Value minus Total Liability and Outstanding Interest of your Margin Account, when converted to US dollars.
Unified Maintenance Margin Amount means the sum of the total amount of Maintenance Margin or the Margin required to maintain margin levels, which is required to be held across all nominated Futures Accounts and Cross Margin Accounts when converted to US dollars.
Portfolio Margin Pro Account uniMMR | Status |
uniMMR > 150% | You can trade freely |
120% < uniMMR ≤ 150% | You will receive a reminder to transfer funds to your USDⓈ-M Futures, COIN-M Futures, or Cross Margin Account, repay Margin Loan, or reduce Futures positions |
105% < uniMMR ≤ 120% | The system refuses to accept new orders. Binance will still accept new Reduce Order positions. You’re not allowed to increase margin levels. |
100% < uniMMR ≤ 105% | Liquidation will take place. Binance will send a liquidation notice. |
uniMMR ≤ 100% | You will receive a liquidation notice and Binance may also make a claim for Loss. |
Please note that if the margin call time and liquidation call time are too close, the margin call notification will be automatically canceled by the system, we will only send the liquidation call notification to you.
Collateral Calculation and Liquidation Example
Suppose user A has the following margin assets and loan and the margin leverage used is 3x cross-margin.
SpotMM = (Loan*MMR) / (1-MMR), while MMR = marginMM/marginAsset= 1-1/1.1 with 3x leverage.
Let’s calculate user A’s Equity and MM (Maintenance Margin):
Coin | Margin Asset | Margin Loan | Equity = MarginAsset - MarginLoan | Margin MM |
USDT | 1,000 | 0 | 1,000 | 0 |
BTC | 0.1 | 0.04 | 0.06 | 0.004 |
ETH | 20 | 15 | 5 | 1.5 |
Meanwhile, user A has the following Futures positions and assets in the USDⓈ-M Futures and COIN-M Futures accounts.
Let’s calculate user A’s Equity and MM:
USDⓈ-M | COIN-M | ||
Symbol | BTCUSDT_PERP | BTCUSDT_20220624 | BTCUSD_PERP |
Asset | USDT | USDT | BTC |
Wallet balance | 5,000 USDT | 0.1 BTC | |
MMR bracket | 0.5% | 0.5% | 0.5% |
Position quantity | 0.05 BTC | 0.04 BTC | 10,000 USD |
Position side | short | long | long |
Entry Price | 52,000 | 52,350 | 50,000 |
Mark Price | 40,000 | 42,000 | 40,000 |
Unrealized PnL | 600 USDT | -414 USDT | -0.05 BTC |
Equity | ∑Equity = ∑min((MarginAsset - MarginLoan+ futuresAsset + futuresUnrealPnL)*assetIndexPrice*collateralRate, (MarginAsset - MarginLoan + futuresAsset + futuresUnrealPnL)*assetIndexPrice) Unified Account Equity means the the sum of (1) the account balance of your nominated Futures Accounts, (2) unrealized profits (if any) less any unrealized losses (if any) in respect of each position of your USDⓈ-M Futures and COIN-M Futures, (3) Total Assets Value less Total Liability and Outstanding Interest of the User’s Cross Margin Account, when converted to US dollars. MM = ∑Maintenance Margin =∑ futuresMM*assetIndexPrice + ∑MarginMM*assetIndexPrice | 0.05 BTC | |
MM | 10 USDT* 0.05*40,000*0.5%=10 | 8.4 USDT* 0.04*42,000*0.5%=8.4 | 0.00125 BTC* 10000*0.5%/40000=0.00125 |
Let’s combine the above calculation to get the Unified Account Equity and Unified Maintenance Margin Amount:
Coin | Asset IndexPrice | Collateral Rate | Unified Account Equity | Unified Maintenance Margin Amount |
USDT | 1.001 | 0.99 | 5,186 + 1,000 = 6,186 | 10 + 8.4 = 18.4 |
BTC | 40,000 | 0.95 | 0.06 + 0.05 = 0.11 | 0.004 + 0.00125 = 0.00525 |
ETH | 2,100 | 0.95 | 5 | 1.5 |
Unified Account Equity = (6,186*0.99*1.001) + (0.11*40,000*0.95) + (5*2,100*0.95) = 20,285.26
Unified Maintenance Margin Amount = (18.4*1.001) + (0.00525*40,000) + (1.5*2,100) = 3,378.41
uniMMR = (20,285.26/3,378.41) * 100% = 600.44%