What Is the Unified Account Maintenance Margin Ratio (uniMMR) And How Is It Calculated

Suppose User A has the following margin assets, loan, and open orders.They use a 3x leverage in the Cross Margin mode.

1. How to calculate OpenLoss?

We'll calculate User A's OpenLoss using the following formula:

OpenLoss = ∑qty * price * min(0, side * (collateralRateA - collateralRateB))

Where:

• qty is the quantity of the base asset
• collateralRateA refers to the quote asset
• collateralRateB refers to the base asset
• side = -1 for buy and side = 1 for sell.

Here's a summary of User A's openLoss for each order on Cross Margin:

• openLoss for order 1 = 0.1 * 40,005 * min(0, -1*(0.99 - 0.95)) = -160.02 USDT
• openLoss for order 2 = 0.2 * 2,102 * min(0, 1*(0.99 - 0.95)) = 0 USDT

Hence, openLoss = -160.02 + 0 = -160.02 USDT

2. How to calculate Equity, Initial Margin, and Maintenance Margin for the Cross-Margin Account?

Let’s calculate User A’s Equity, Initial Margin (IM), and Maintenance Margin (MM):

MarginIM = MarginLoan / ( leverage - 1 )

*Assume leverage is 3x by default in Cross Margin mode.

∑MarginMM = ∑ (Loan * MMR)

Using this MMR value, we can calculate the Cross-Margin MM for each asset:

• USDT: Cross Margin MM = 0
• BTC: Cross Margin MM = 0.004
• ETH: Cross Margin MM = 1.5

Initial Margin Rate (IMR): IMR is a percentage of the total value of a position that a trader is required to hold as collateral in their account when opening a new trade. It represents the minimum amount of funds that must be deposited to cover potential losses. A higher IMR indicates a lower level of leverage and a larger amount of required collateral.

Maintenance Margin Ratio (MMR): MMR is the minimum percentage of the total value of a position that a trader must maintain in their account to keep the position open after it has been established. It serves as a safety net to ensure that the trader have enough funds to cover potential losses and avoid liquidation. If the account's equity falls below this rate, the position will be liquidated to prevent further losses.

3. How to calculate Equity, Initial Margin, and Maintenance Margin for the USDⓈ-M and COIN-M Futures accounts?

User A also has the following Futures positions, unrealized PnL, and assets in the USDⓈ-M Futures and COIN-M Futures accounts:

Let’s calculate User A’s Equity, IM, and MM (Maintenance Margin) on USDⓈ-M and COIN-M Futures:

*Initial Margin = Notional Position Value / Leverage Level

4. How to calculate the Unified Account Adjusted Equity and Unified Maintenance Margin Amount for each asset?

Knowing that UniMMR = ∑adjustedEquity /∑MM, let’s combine the above calculations to get the Unified Account Adjusted Equity and Unified Maintenance Margin Amount for every asset held in User A’s Cross Margin and Futures accounts:

5. How to calculate the Unified Account Maintenance Margin Ratio (uniMMR)?

We now have enough data to calculate the uniMMR.
As a reminder, uniMMR = ∑adjustedEquity /∑MM

• Let’s first calculate the Unified Account Adjusted Equity (∑adjustedEquity):

Unified Account Adjusted Equity = ∑Equity - OpenLoss * assetIndexPrice = (6,186 * 0.99 * 1.001) + (0.11 * 40,000 * 0.95) + (5 * 2,100 * 0.95) - 160.02 * 1.001 = 20,125.08

• Then, calculate the Unified Maintenance Margin Amount (∑MM):

Unified Maintenance Margin Amount = USDT MM * Asset IndexPrice + BTC MM * Asset IndexPrice + ETH MM * Asset IndexPrice = (18.4 * 1.001) + (0.00525 * 40,000) + (1.5 * 2,100) = 3,378.41

• We can now calculate the uniMMR:

uniMMR = ( 20,125.08 / 3,378.41) = 5.96 (595.6%)

6. How to calculate the maxWithdraw?

MaxWithdraw is the maximum amount of an asset a user can withdraw from their Margin Account without breaching the required margin levels. It takes into account the user's wallet balance, virtual available balance, and the required collateral rate to ensure the remaining assets can still cover the user's positions and maintain the required margin levels.

Let's calculate the MaxWithdraw for User A:

• Unified Initial Margin Amount = (368 * 1.001) + (0.045 * 40,000) + (7.5 * 2,100) = 17,918.368
• Virtual Available Balance = Unified Account Adjusted Equity - sum(Initial Margin) = 2,206.712
• MaxWithdraw for USDT in the Portfolio Margin account = max(min(margin free asset, virtual available balance / asset index price / collateral rate), 0) = max(min(0, 2,206.712 / 1.001 / 0.99), 0) = max(min(0, 2,226.77), 0) = 0
• Please note User A also has 1,999.5 USDT in the USDⓈ-M Portfolio Margin Account. If User A had made the fund collection first, the 1,999.5 USDT would have been transferred to the Margin Portfolio Margin Account, in which case User A’s maxWithdraw for USDT in the Portfolio Margin Account = max(min(1,999.5, 2,226.77),0) = 1,999.5 USDT

7. How to calculate the maxLoan amount?

Let's assume User A would like to borrow some BTC. To calculate their maxLoan amount, we can use the following formula:

virtualMaxLoan = (Leverage - 1)*max(virtualAvaliable balance, 0)

=(3 - 1) * (2,206.712, 0) = 4,413.424

MaxLoan for BTC = min (VirtualMaxLoan / assetIndexPrice, MaxBorrow - CurrentLoan) = min(4,413.424/40,000, 10 - 0.04) = 0.11033560

Where:

• Leverage: 3x
• virtualAvailable balance: 4,413.424 USDT
• maxBorrowable of BTC for the user = 10