Understanding Collateral Value Ratios in Trading Account

In a Trading Account, all supported collateral assets are valued in USD. This USD value serves as the margin balance, which can be used for trading. Due to varying liquidity conditions of each crypto asset, these assets may be valued at a discounted rate using a "Collateral Value Ratio." This ratio determines the percentage at which an asset is recognized as collateral.

How Collateral Value Ratio Affect Margin Balance 

In Cross Margin mode, the Margin Balance is calculated as:

Margin Balance = Wallet Balance + Perp & Future Unrealized Profit/Loss (UPL)

If there are no positions or orders in your account, the margin balance is calculated as:

Total Wallet Balance (in USD) =  Sum (Asset 1 × USD Index Price × Collateral Value Ratio + Asset 2 × USD Index Price × Collateral Value Ratio + … + Asset N × USD Index Price × Collateral Value Ratio)

Whereas,

USD Index Price = USDT Perpetual Index Price x USDT Conversion Rate

USDT Conversion Rate = BTCUSD Index Price / BTCUSDT Index Price

Notes:

• If there is no USDT Perpetual Index Price for a particular asset, the Last Traded Price on Zoomex Spot Market will be used. For example, the USD Index Price for ETH will be ETHUSDT Index Price × USDT Conversion Rate.
• The Collateral Value Ratio only applies to assets with a positive balance. For assets with a negative balance default to a 100% collateral value ratio.
• Traders can customize which assets to be served as collateral. For more details, please check here.

Example Calculation

Assume the tiered value rates of BTC and USDT are shown as follows:

Coins	Tier（Quantity）	Collateral Value Ratio
BTC	0 - 10	0.98
BTC	>10 - 20	0.95
BTC	>20 - 30	0.9
BTC	>30 - 40	0.85
BTC	>40 - 50	0.8
BTC	>50	0
USDT	>0	1

Trader A’s Trading Account has the following assets:

Coin	Wallet Balance	Unrealized PnL	Total Assets	Index Price	Total Margin Balance
BTC	60	20	80	50,000	(10 x 0.98 + 10 x 0.95 + 10 x 0.9 + 10 x 0.85 + 10 x  0.8 ) x 50,000 = 2,240,000
USDT	500	-10,000	-9500	1	-9500 x 1 = -9,500  （Ratio for negative asset equal to 1）

Total margin balance = 2,240,000-9,500 ≈ 2,230,500 USD

Therefore, the total amount available as a margin for this account is approximately 2,230,500 USD.