BitU Protocol
  • Overview
    • 👾What is BitU Protocol?
      • 🐛Problem
      • ✨Solution
    • 💧BitU Liquidity
    • 🥩BitU Staking
      • 📊ALMM
    • 🔀BitU Omni Trading Hub
    • ⏳The Future of BitU Protocol
    • 📒Glossary
  • Project-Design
    • 🏹Architecture
    • ⛏️Liquidity
      • ⏳Liquidation
    • 🥩Staking
    • 📈Omni Trading Hub
      • Fees
      • Funding Rate
      • Prices
      • Orderbook
      • Order Typers
      • Margin
      • Margin Health
    • ❓FAQ
    • ⚠️Risks
      • Collateral Risk
      • Liquidation Risk
      • Counterparty Risk
      • Exchange Failure Risk
      • Custodial Risk
    • 🌱Key Addresses
    • 🛡️Audits
    • 🏦Reserves
  • User Guides
    • How to mint $BITU
    • How to redeem $BITU
    • How to stake $BITU
    • How to unstake $sBITU
    • FAQs
  • Community
    • Twitter
    • Discord
  • Resources
    • Media Assets
    • Terms of Service
    • Privacy Policy
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On this page
  • Valid Margin
  • Available Margin
  • Maintenance Margin Ratio (UNIMMR)
  1. Project-Design
  2. Omni Trading Hub

Margin

Currently, users’ trading accounts support only $BITU as the asset, which is linked to a unified margin and risk monitoring system.

  • The account margin is denominated in $BITU.

  • The margin currency’s equity (the value of the held currency) is converted into margin value based on a discount rate.

  • Margin Currency and Discount Rate: BitU sets the discount rate for each currency. The discount rate determines the effective value of the currency when converted into margin.

Valid Margin

Valid Margin = Total Margin Value - Margin Loss

  • It measures the level of risk the account can bear. A higher Valid Margin allows for more positions and liabilities to be supported.

  • Total Margin Value is the weighted sum of the equity and the discount rate of each currency.

  • Margin Loss: This includes estimated fees and potential price slippage from pending orders and positions.

Available Margin

Available Margin = Valid Margin - Frozen Margin

  • It is used to validate the ability to open contracts and borrow. When Available Margin is 0, there is no margin support for opening positions or borrowing.

  • Frozen Margin: Includes liabilities, occupied margin for positions, and reserved margin for orders.

Maintenance Margin Ratio (UNIMMR)

UNIMMR = Valid Margin / Maintenance Margin

  • It is used to monitor account risk.

  • The higher the ratio, the safer the account. If the value drops below 100%, it triggers the liquidation process.

  • Maintenance Margin (MM) includes liabilities and contract maintenance margin, determined by the maintenance margin rate of the risk tier.

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Last updated 7 months ago

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