How Haircuts Change Collateral Value in Multi-Asset Futures Margin
Summary
The document explains how multi-asset margin works for USDT-margined futures. In single-asset mode, only USDT contributes to margin; in multi-asset mode, supported coins can also count, but their value is discounted by a haircut rate. It illustrates a tiered haircut calculation for BTC collateral, showing how each value band receives a different discount before the resulting amount is added to available margin.
It also outlines operational conditions for changing margin modes. Switching from single-asset to multi-asset mode requires cross margin, so isolated positions must first be changed to cross margin. Moving back requires enough USDT to cover current positions and open orders, as well as a maintenance margin rate below the stated threshold. The article is a platform-specific explanation, not a general model of liquidation risk or a comparison across exchanges. Haircut rates and supported collateral assets can change, so the described figures and procedures may not remain current.
Key ideas
- Multi-asset mode allows supported coins to serve as collateral for USDT-margined futures.
- Haircuts discount collateral value, and tiered rates can apply to different value bands.
- Changing into multi-asset mode requires positions to use cross margin.
- Returning to single-asset mode requires sufficient USDT collateral and a maintenance-margin condition.
- Collateral eligibility and haircut settings are platform-specific and may change.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.