What is Margin Trading？

　　Margin trading is a trading method using funds provided by a third party. Compared to regular trading accounts, margin accounts allow traders to access more considerable sums of capital, allowing them to leverage their positions. This ability to expand trading results makes margin trading popular in low-volatility markets, mainly the international forex and rates market. Margin trading is also used in the stock, commodity, and cryptocurrency markets.

　　In traditional financial markets, an investment broker usually provides the borrowed funds. However, in cryptocurrency trading, funds are often provided by other traders or crypto exchanges, who earn interest based on market demand for margin funds.

　　For BitMart Margin Trading 1.0, we will enable the Isolated Margin function first.

　　What Are the Differences Between Isolated Margin and Cross Margin Trading？

　　BitMart now supports Isolated Margin trading and will also support Cross Margin in the future.

　　You can easily find Cross/Isolated Mode on the trading page.

　　Margin in Isolated Margin mode is independent for each trading pair:

　　- Each trading pair has an independent Isolated Margin Account. Only specific cryptocurrencies can be transferred in, held, and borrowed in a specific Isolated Margin Account. For instance, in the BTC/USDT Isolated Margin Account, only BTC and USDT are accessible. You may open several isolated margin accounts for trading different pairs.

　　- The position is independent for each trading pair. If adding margin is required, even if you have enough assets in other Isolated Margin Accounts or the Cross Margin Account, the margin will not be added automatically. You may have to replenish manually.

　　- The risk ratio is calculated solely in each Isolated Margin Account based on the asset and debt in the isolated.

　　- Risk is isolated in each Isolated Margin Account. Once liquidation happens, it will not affect other isolated positions.

　　Margin in cross margin mode is shared among the users Margin Account:

　　- Each user can only open one cross margin account, and all trading pairs are available in this account.

　　- Assets in a cross margin account are shared by all positions.

　　- Risk ratio is calculated according to total asset value and debt in the Cross Margin Account.

　　- The system will check the margin level of the Cross Margin Account and notify users about supplying additional margin or closing positions. Once liquidation happens, all positions will be liquidated. BitMart Risk Ratio and Margin Call

　　Margin trading allows you to add leverage to your positions to increase your potential earnings and profits. BitMart uses the Risk Ratio to evaluate the risk level of your Margin Account. Risk Ratio of Isolated Margin

　　1. The net assets in the users isolated margin account only can be used as the collateral in the corresponding account, and the assets in the user's other accounts couldn't be used as collateral for it.

　　2. The Risk Ratio of the isolated account = the total value of assets under the isolated account / , among them:

　　- Total value of assets = the total value of the base assets + quote assets in the current isolated account Total liabilities = The total value of the assets that have been borrowed but not returned in the current isolated account Unrepaid interest = - repaid interest

　　- Total value of assets = the total value of the base assets + quote assets in the current isolated account

　　- Total liabilities = The total value of the assets that have been borrowed but not returned in the current isolated account

　　- Unrepaid interest = - repaid interest

　　1. Risk Ratio and Operation: when the Risk Ratio > 2, users can trade, can borrow, and the excess assets in the account can also be transferred to other trading accounts. But the Risk Ratio still needs to equal or greater than 2 after transferring out to ensure normal asset transferring out functions. Margin Call Risk Ratio

　　- When Margin Call Risk Ratio Risk Ratio ≤ 2, users can trade and borrow, but cannot transfer assets out.

　　- The Margin Call Risk Ratio will be different according to different leverage levels. For example, the Margin Call Risk Ratio for a 3x leverage is 1.35, for 5x leverage, it will be 1.25 and for 10x, it will be 1.09. Liquidation Ratio

　　- When Liquidation Ratio Risk Ratio ≤ Margin Call Risk Ratio, a margin call will be triggered. The system will send notifications with an email, SMS, suggesting the user add a margin to avoid the risk of liquidation.

　　- When Risk Ratio ≤ Liquidation Ratio, the system will execute the liquidation process. The position held in the account will be forced to clear to repay the loan. At the same time, users will be notified via email, SMS.

　　- Liquidation Ratio will vary according to different leverage levels. For example, the Liquidation Ratio for 3x leverage is 1.18, for 5x leverage, it is 1.15, while for 10x leverage, it is 1.05. What are Liquidation Clearance Fees？

　　When your Margin account is being forced liquidated, BitMart will charge a certain percentage in clearance fees. These fees can be viewed in the Margin account Clearance Fee History. However, you are recommended to manage your risks carefully to avoid forced liquidations. The user's liquidation price will not change as a result.

　　For Isolated Margin, Liquidation Clearance Fees = Isolated Margin liquidated assetsclearance fee rate.

　　Daily Interest Rate for BitMart Margin Trading

　　BitMarts margin account interest rate is calculated on an hourly basis.

　　NOTE: If funds are borrowed for less than 1 hour, the interest rate will still be calculated as for assets borrowed for 1 hour.

　　If the daily interest rate is 0.02%, the hourly interest rate is calculated as 0.02%/24.

　　The calculation formula: I = P R T

　　For example:

　　If user A borrows 1,000 USDT at 13:20 PM, and repays at 14:15 PM, the interest rate is calculated as 1,000 2 = 0.01666667 USDT.

　　Margin account interest rates may be adjusted from time to time.

　　Repayment rules

　　1. You need to repay in the same coin as what you borrowed. For example, if you borrowed ETH, your account needs to have ETH when you make the repayment. Note that you cannot use other coins for repayment.

　　2. You can repay the coins over separate repayments, but every time you conduct a repayment, you need to repay the interest first. How do I start my margin trading？

　　1. To start margin trading, you need to open your margin account first, go to [Assets] -> [Margin] to find your Margin account entrance. Click [Open Now] to start the account open process.

　　2. Read the Important Notice and make sure you understand everything and click [Open Now].

　　3. Read the Margin Account Agreement carefully and check the box to agree, click [next].

　　4. Click [OK] to take the assessment test.

　　5. You must answer all questions correctly to open a BitMart Margin Account. When you answer all questions, click [submit].

　　6. Congratulations, your margin account has been successfully opened! Next, you can click [Go to Margin Account] to view your margin account details. All thats left is to transfer some funds into your account and start trading! How do I transfer assets to my margin account？ WEB version:

　　1. Find the [Transfer] button on your margin account interface and click.

　　2. Find the [Transfer] button on your margin account interface and select Transfer Direction, Isolated Margin Pair, and Coin, then fill in the amount you want to transfer, and click [Confirm]. APP version:

　　1. Find the [Transfer] button on your margin account interface and click.

　　2. Select transfer direction, Isolated margin pair, and coin, fill in the amount you want to transfer and click [Confirm].

　　How do I borrow in my margin account？ WEB version:

　　1. There are two [Borrow] buttons on your margin account interface. Click on either of them.

　　2. Select desired trading pair and asset. Fill in the amount you want to borrow and click [Confirm Borrow].

　　3. Once your borrow request is processed, the risk ratio of your margin account will be updated in real-time, as well as the total asset and debt of your margin account.

　　APP version:

　　1. Find the [Borrow] botton on your margin account interface and click it.

　　2. Select desired trading pair and asset. Fill in the amount you want to borrow and click [Submit].

　　3. Once your borrow request is processed, the risk ratio of your margin account will be updated in real-time, as well as the total asset and debt of your margin account. How do I repay my debt？ WEB version:

　　1. In your margin account, find the [Repay] button and click it.

　　2. Select your desired trading pair and asset. The system will show you the current borrowed amount and interest on the selected asset of your account. Fill in the amount you want to repay,and click [Confirm Repayment]. Note: You need to repay in the same assets you have borrowed. For example, if you borrowed Bitcoin, your account needs to have BTC when you make the repayment. You cannot use other assets for repayment. You can repay the assets over separate repayments, but every time you conduct a repayment, you must pay the interest first.

　　3. Once your repayment request is processed, the risk ratio of your margin account will be updated in real-time, as well as the total asset and debt of your margin account. APP version:

　　1. In your margin account, find the [Repay] button and click it.

　　2. Select trading pair and select asset. The system will show you the current borrowed amount and interests on the selected asset of your account. Fill in the amount you want to repay, and click [Confirm Repayment]. Note: You need to repay in the same asset as what you borrowed. For example, if you borrowed ETH, your account needs to have ETH when you make the repayment. You cannot use other assets for repayment.You can repay the assets over separate repayments, but every time you conduct a payment, you must repay the interest first.

　　3. Once your repayment request is processed, the risk ratio of your margin account will be updated in real-time, as well as the total asset and debt of your margin account. How do I place a Margin Order？ WEB version:

　　1. From your margin account, you can click the [Trade] button corresponding to your desired trading pair, which redirects you to the margin trading interface.

　　2. You can place your order in the margin trading interface. APP version:

　　Click the [Trade] button at the bottom of your app and find the [Margin] tab, click [Margin] and you can start margin trading here.

　　How to Use the One-Click Borrow & Repay Function？

　　All order types on BitMart's Cross Margin and Isolated Margin platforms support the following three transaction modes:

　　- Normal: Place a buy/sell order by using the existing crypto assets in the Margin Account. Under normal circumstances, users will borrow manually on the margin platform and repay manually.

　　- Automatic borrowing: Place a buy/sell order by automatically borrowing crypto assets according to the user's maximum leverage. It is equivalent to "borrowing + ordering".

　　- Note: The borrowing is completed when the order is successfully placed, and the borrowing is not related to the completion of the order. For manual borrowings, please click [Borrow] to complete the borrowing process. You can refer to the “How do I borrow in my margin account？” section for more details.

　　- Note: The borrowing is completed when the order is successfully placed, and the borrowing is not related to the completion of the order.

　　- For manual borrowings, please click [Borrow] to complete the borrowing process. You can refer to the “How do I borrow in my margin account？” section for more details.

　　- Automatic repayment: After the buy/sell order is completed, the system automatically uses the received crypto assets to repay the asset's liabilities. In short, it is equivalent to " order + order filled + repayment". After the order is filled, if the amount is not sufficient to repay the loan for the asset, the system will choose to take all of the remaining amount to cover as much as the loan asset as possible, and the remaining liabilities will need to be repaid manually by the user. For details of manual repayments, please refer to the “How do I repay my debt？” section. You need to repay debts with the same asset you borrowed and the interest must be paid before the principal.

　　- After the order is filled, if the amount is not sufficient to repay the loan for the asset, the system will choose to take all of the remaining amount to cover as much as the loan asset as possible, and the remaining liabilities will need to be repaid manually by the user. For details of manual repayments, please refer to the “How do I repay my debt？” section.

　　- You need to repay debts with the same asset you borrowed and the interest must be paid before the principal. How to Long on Margin Trading

　　In margin trading, taking a “long” position refers to buying an asset at a low price and then selling at a higher price. In this way, you can earn a profit from the price difference.

　　For example, if you think Ethereums price will go up in the coming future, you can borrow USDT in your ETH/USDT Isolated Margin Account and buy ETH at a relatively lower price now. If the price of ETH goes up, you can sell ETH, repay your USDT debt and your profit is amplified when compare to spot trading.

　　How to Short with Margin Trading

　　In margin trading, a “short” position refers to selling an asset at a high price and then buying at a lower price. In this way, you can earn a profit from the price difference.

　　For example, if you think that Bitcoins price will go down in the future, you can borrow BTC in your BTC/USDT Isolated Margin Account and sell BTC at a relatively higher price now. If the price of BTC goes down, you can buy BTC back, repay your BTC debt and your profit is amplified when compared to spot trading.

　　Where to check my transfer/borrow/repay history？

　　1. Click the [History] button on your margin account interface.

　　2. You can find your Borrowing/Repayment/Transfers/Interest/Liquidation history in the Margin History interface. How do I review my Margin Orders？ WEB version:

　　1. Navigate to the [Margin History] button and click it.

　　2. You can find all your margin orders/liquidation orders in the Margin History interface. APP version:

　　1. Find the [All] button to the order's history on your Margin Trading interface and click it.

　　2. View your margin orders and liquidations orders here.