Rules for Cross Margin Trading in Gate.io
1. General
1.1 These regulations are created in line with the principles of justice, openness, and impartiality in order to regulate margin trading and margin loans of crypto assets, preserve market order, and protect users’ legitimate rights and interests.
1.2 These regulations serve as the foundation for Gate.io’s margin trading service, which includes borrowing loans, trading, and other margin-related activities on the platform.
1.3 These rules apply to margin borrowing and cross-margin trading. The Gate.io Service Agreement and other relevant provisions apply to cases where there are no specific provisions in this document.
2. Margin
2.1 Margin traders can use their cross margin account’s net balance as margin/collateral for cross margin trading.
2.2 All currencies that are traded in the margin trading market are eligible as margin for margin loans. Please refer to Announcements for updates.
2.3 In order to control risk, Gate.io introduces margin adjustment factor to help control risks of users’ accounts. Margin adjustment factor refers to the factor that the margin currency is converted to its market price when calculating its margin value.
2.4 In order to ensure the safety of the funds, Gate.io will adjust the range of borrowable currencies and the margin adjustment factor. Please refer to Announcements for updates.
2.5 For the purpose of controlling risks, Gate.io puts a limit on the total assets of the cross margin account and has the right to modify this limit according to circumstances.
3. Rules for Margin Loans
3.1 Maximum margin loan limit refers to the maximum loan volume of the current margin trading currency. The user’s current maximum margin borrowing limit is calculated according to the user’s maximum margin loan limit and Gate.io’s risk control measures.
Maximum margin loan limit = Min( [converted net balance of the cross margin account*(maximum leverage ratio - 1)-unrepaid loans]/borrow factor, maximum borrowing limit of the currency).
Converted net balance of the cross margin account = net balance of the cross margin account*margin adjustment factor
3.2 Borrow factor refers to the factor that converts the loaned currency to its market price when calculating the amount of margin used.
3.3 After a margin loan is successfully approved and the borrowed assets are sent to the user’s cross margin account, interest will begin to accumulate immediately. The user may use the loan for cross margin trading of the approved currency pairs. (There is no fixed repayment date for cross margin loans. Users may repay the loans at any time. The interest rate is being updated every hour and the total interest grows every hour. Please be aware of the risks, repay the loan as early as possible and increase the margin when necessary.)
3.4 Auto-Borrow: Users can enable Auto-Borrow on the margin trading page. If Auto-Borrow is enabled, the system will automatically borrow the funds you need for trading. Interest starts to accrue once the loan is borrowed.
3.5 In order to ensure asset safety, Gate.io will adjust the range of borrowable currencies. Please refer to Announcements for updates.
View the margin adjustment factor and borrow factor of borrowable currencies by clicking on "View interest rate details"
4. Interest Rate
4.1 Interest calculation rule: Interest grows on an hourly basis. The total of loan hours is the length of time where the user holds the loan. If a user holds a loan for x hours and y(0
The formula:interest = loan*(daily interest rate/24)*total of loan hours
4.2 Users can repay the loan in advance partially or fully and the interest will be calculated according to the actual length of time. Repayment goes to cover the interest first. Only after the interest is fully paid, will the rest of the repayment cover the principal.
4.3 The interest, when not repaid, will be included when calculating risk rate. With outstanding interest accruing over a long period of time, it may press the risk rate below the threshold and trigger liquidation. To eliminate this possibility, users should pay off the interest regularly and keep a safe balance in their margin accounts.
4.4 Gate.io will adjust the interest rate every hour according to market trends.
5. Repayment
5.1 Users can manually select the loans to repay. When entering the repayment volume, users can choose to either repay the loan fully or partially. Interest must be covered first before users can pay off the loan fully. In the next hour, interest will be calculated with the latest total loan volume.
5.2 The currency used to pay back a loan must be the same one that the user received from the loan. Users must ensure that there is a sufficient amount of the same currency at the time of payback.
5.3 Auto-Repay: Users can enable Auto-Repay on the margin trading page. Orders placed when Auto-Repay is enabled must finish first before the loan can be repaid by the funds the user gets from the order.
6. Risk Control
6.1 Margin traders use the net balance in their cross margin accounts as margin/collateral. Assets in other accounts do not count as collateral unless transferred to their cross margin accounts.
6.2 Gate.io has the authority to adjust the maximum margin value for each borrowable currency. The maximum margin value is used to calculate the margin level of cross margin accounts, buying limit and withdrawal limit.
6.3 Gate.io has the authority to monitor the margin level of the users’ cross margin accounts and take appropriate actions in response to changes of the margin level. margin level of the cross margin account = total balance in the cross margin account/(loan volume + outstanding interest)
The market value conversions all use USDT as the price unit. Total balance in the cross margin account = total market value of all crypto assets currently in the cross margin account
Loan volume = total market value of all outstanding margin loans of the cross margin account Outstanding interest = total market value of all margin loans* total of loan hours*hourly interest rate - paid interest
6.4 Margin level Actions When margin level 2, users can trade, borrow loans and withdraw funds from margin account (as long as the margin level stays above 150% after the withdrawal).
Withdrawable funds = Max[(margin level-150%)*(total loan volume+outstanding interest)/last price of USDT,0]
When 1.5＜ margin level ≤2, users can trade and borrow loans, but can’t withdraw funds from margin account.
When 1.3＜ margin level ≤1.5, users can trade, but can’t borrow loans or withdraw funds.
When 1.1＜ margin level ≤1.3, users can trade, but can’t borrow loans or withdraw funds. Users will be recommended to increase margin to avoid liquidation and notified of potential risks via email and SMS. Notifications will be sent every 24 hours. Upon receiving the notifications, users ought to repay the loans (partially or fully) or transfer more funds to margin account to make sure the margin level stays above 130%. When margin level ≤1.1, liquidation will be triggered. All assets from the cross margin account will be used to pay back the loans and interests. The user will be notified in an email or an SMS message of the liquidation.
6.5 Users should be aware of the risks of margin trading and promptly adjust the position holding ratio to avoid risks. All losses resulting from liquidation shall be covered solely by the user who owns the margin account, including but not limited to losses made in the following scenario: The user fails to conduct appropriate actions in time after receiving a warning notice from Gate.io because the margin level drops to the liquidation threshold right after it triggers warning notifications.
6.6 Gate.io manages margin trading and its risks smartly. When margin trading and margin loans enter the pre-set warning range, Gate.io will take necessary risk prevention measures, including but not limited to enforcing liquidation and restrictions on transferring funds, going long/short and trading on margin.
6.7 Gate.io monitors the total market value of cross margin loans. When the total margin loan volume reaches the limit, Gate.io will temporarily disable the account from borrowing margin loans until the total market value is below the limit.
6.8 According to the real-time market trends and volatility, Gate.io will change the pre-set maximum margin loan limit and total margin loan volume on the platform.
