FAQ's

What is a multi-collateral perps system?

A multi-collateral perpetuals (perps) system allows traders to use a variety of assets (collateral types) to back their leveraged positions in perpetual contracts. This flexibility provides traders with more options to manage their risk and exposure while trading derivatives.

What types of collateral can I use?

The system supports various assets as collateral, which include stablecoins (e.g., UDSx, USDe) & major cryptos ETH and tBTC, and other future approved tokens. The exact list of accepted collateral can be found at Multi Collateral

How is my collateral valued?

Collateral is valued based on real-time market prices from trusted oracles thus available margin to open or maintain existing positions will vary in real-time.

How do I maintain my position?

To maintain an open position, you need to ensure your collateral value remains above the maintenance margin threshold. If the value of your collateral falls below this threshold due to price changes, your position could be liquidated to prevent further losses.

Can I use multiple collaterals at the same time?

Yes, you can combine multiple collateral types to back your positions. The system will calculate your overall margin based on the value of each collateral type. This gives you flexibility to manage risk across different asset types.

What happens if my collateral is unstable?

If your collateral is highly volatile or experiences a drastic price drop, it may negatively impact your margin ratio, leading to a higher risk of liquidation. To mitigate this risk, it’s recommended to diversify collateral or maintain a buffer by keeping your margin well above the required levels.

Can I withdraw collateral while I have an open position?

Yes, you can withdraw excess collateral as long as the remaining collateral still meets the margin requirements for your open positions & no debt (in the form of - PNL) exists. If withdrawing collateral would drop your margin below the required level, or the traders has unpaid debt the system will block the withdrawals.

Find out how to settle debt at Settlement of Debt