Tiered Margin Calculation

1. A tiered maintenance margin requirement is used for borrowing funds, based on the USD value of liabilities. Example: Suppose that the maintenance margin level for a BTC loan at the tier of 0-2,000,000 USD is 2%, and 4% in the tier of 2,000,000 USD-5,000,000 USD. You have an outstanding loan amount of 30 BTC and the current BTC price is 100,000 USD. In this case, the maintenance margin required = 2,000,000 * 2% + 1,000,000 * 4% = 80,000 USD.

2. The initial margin level required for borrowing funds = 1 / Leverage. For example, if you selected a leverage of 5x for borrowing funds, the initial margin level required is 1/5. The max leverage you can select is determined by your loan size. The larger the loan size, the lower the max leverage.

3. Leverage and Borrowing Limit: Borrowing limit is aligned with the leverage you select. The lower the leverage, the higher the borrowing limit. The max leverage for the last tier of loan size is 0, which means that the loan size at this tier is the max loan limit set by the platform for risk control.

4. The final borrowing limit = Min (Borrowable calculated based on the current leverage, borrowing limit based on the current leverage, Individual Loan Cap, Pool Available). For more details, please go to: About Margin and Terminology