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    Key Terms and Formulas in Unified Trading Account
    bybit2024-10-28 08:07:07

    Account-Based

     

    Term

    Definition

    Formula

    Total Equity

    Total equity of all assets under the account without considering the collateral value ratio (calculated in USD)

    Wallet Balance + Perp & Futures UPL + Options Value 

    Margin Balance

    The total amount that can be used as margin under the account after considering the collateral value ratio (calculated in USD)

    Cross Margin

    Wallet Balance + Perp & Future UPL 


    Portfolio Margin

    Wallet Balance + Perp & Future UPL+ Option Value

    Account IM Rate

    Initial margin base rate of the account

    Cross Margin

    Total Initial Margin / (Margin Balance - Haircut Loss + Order Loss)


    Portfolio Margin

    Total Initial Margin / (Equity - Haircut Loss + Order Loss)

    Account MM Rate

    Maintenance margin base rate of the account

    Cross Margin

    Total Maintenance Margin / (Margin Balance - Haircut Loss + Order Loss)


    Portfolio Margin

    Total Maintenance Margin / (Equity - Haircut Loss + Order Loss)

    Total Initial Margin

    The total amount of initial margin under the account (calculated in USD)

    Σ Initial Margin for Open Positions + Σ Initial Margin for Active Orders + Σ Initial Margin on Borrowed Assets

    Total Maintenance Margin

    The total amount of maintenance margin under the account (calculated in USD)

    Σ Maintenance Margin on Borrowed Asset + Σ Maintenance Margin for Open Positions + Σ Maintenance Margin for Active Orders

    Perp & Futures UPL

    Total unrealized profit and loss under USDT Perpetual and USDC Perpetual & Futures Contracts

    ∑ Asset - Based Perp & Futures UPL

    Haircut Loss

    Total potential value loss of margin due to spot orders (calculated in USD)

    ∑ Spot Symbol Haircut Loss (All Spot orders)

    [Note: See definition of Haircut Loss below]

    Order Loss

    The total potential value loss of the margin caused by the deviation of the perpetual order price from the Mark Price

    ∑ Asset - Based Order Loss (All Perpetual & Futures orders)

    Buy Order Loss: 

    Min [0, (Mark Price - Order Price ) × Order Size]


    Sell Order Loss: 

    Min [0, (Order Price - Mark Price ) × Order Size]


    [Note: See definition of Order Loss]

    Option Value

    Total option value under the account (calculated in USD)

    ∑ Asset - Based Option Value

    Spot Margin Leverage

    Selected Leverage

    The spot leverage multiple of the account dimension selected by the user

    Effective Leverage

    The Effective Leverage displays the ratio of the borrowed amount and the account equity.



    If Account IM Rate < 100%: Min(1 / (1 - Account Borrow IM Rate), Selected Leverage)


    If Account IM Rate >= 100%:Selected Leverage



    Account Borrow IM Rate (Cross Margin): 

    Total Initial Margin on borrowed assets / (Margin Balance - Haircut Loss + Order Loss)


    Account Borrow IM Rate (Portfolio Margin): 

    Total Initial Margin on borrowed assets / (Equity - Haircut Loss + Order Loss)






     

     

     

    Asset-Based

     

    Term

    Definition

    Formula

    USD Value

    The USD value of the asset

    (calculated in USD)

    Wallet Balance

    The amount of an asset 

    Equity

    The equity of the asset without considering the collateral value ratio

    Asset Wallet Balance + Perp & Futures UPL (USDC and USDT) + Options Value

    Perp & Futures UPL

    Unrealized profit and loss under USDT Perpetual and USDC Perpetual & Futures Contracts

    Long Position
    Mark Price - Average Entry Price × Position Size

    Short Position

    Average Entry Price - Mark Price × Position Size

    Option Value

    Total option value calculated in USD

    Option Mark Price × Position Size

    Margin Balance

    The amount of an asset that can be used as a margin after considering the collateral value ratio (USDC and USDT)

    Cross Margin

    Wallet Balance + Perp & Future UPL 


    Portfolio Margin

    Wallet Balance + Perp & Future UPL+ Option Value

    Available Balance (for Derivatives)

    The amount of an asset that can be used to open USDT Perpetual, USDC Perpetual & Futures, and USDC Options positions (USDC and USDT)

    Cross Margin

    Margin Balance − Total Initial Margin − Frozen


    Portfolio Margin

    Equity − Total Initial Margin − Frozen

    Initial Margin (for Open Positions and Active Orders) 

    The initial margin is the minimum amount of funds required to create derivatives orders and positions

    Active Order Initial Margin = (Order Value / Leverage) + Estimated Fee to Open + Estimated Fee to Close Position


    Order Value = Order Size × Order Price 



    Position Initial Margin

    (Position Value / Leverage) + Estimated Fee to Close Position


    Position Value = Position Size × Average Entry Price 



    IM for Hedged Positions (Cross Margin Mode):

    Position with Higher Value:

    1. If it is a long position

    IM = (Total Position Value/Leverage) + [Hedged Position Value × (1 − 1 / Leverage)  × Taker Fee Rate  × 2] + [Unhedged Position Value × (1 − 1 / Leverage)  × Taker Fee Rate]


    2. If it is a short position

    IM = (Total Position Value/Leverage) + [Hedged Position Value × (1 + 1 / Leverage)  × Taker Fee Rate  × 2] + [Unhedged Position Value × (1 + 1 / Leverage)  × Taker Fee Rate]



    Position with Lower Value:

    1. If it is a long position

    IM= Hedged Position Value × (1 − 1 / Leverage)  × Taker Fee Rate × 2


    2. If it is a short position

    IM= Hedged Position Value × (1 + 1 / Leverage)  × Taker Fee Rate × 2

    Initial Margin (on Borrowed Assets)

    The amount of initial margin taken up for Spot Margin Trading 

    Asset Borrow Size × IM Rate for Borrowed Asset

    IM Rate (for Borrowed Assets)

    The initial margin rate required for borrowing assets

    Spot Margin OFF:
    IMR = 10%

    Spot Margin ON: 
    IMR = 1 / User Spot Margin Leverage

    Borrowed Amount

    Total borrowing amount for a corresponding asset with insufficient available balance

    Cross Margin 

    ABS [Min (0, Equity − Buy Option Initial Margin - Positive Option Value − Asset Frozen)]


    Portfolio Margin

    ABS [Min (0, Equity - Frozen)]

    Maintenance Margin (for Open Positions)

    The maintenance margin is the minimum amount of funds required to maintain derivatives position.

    Maintenance Margin = Position Size × Position Average Price × Maintenance Margin Rate + Estimated Fee to Close Position

    MM for Hedged Positions (Cross Margin Mode):

    Position with Higher Value:

    1. If it is a long position 

    MM = (Unhedged Position Value × Maintenance Margin Rate) + [Hedged Position Value × (1 − 1 / Leverage)  × Taker Fee Rate  × 2] + [Unhedged Position Value × (1 − 1 / Leverage)  × Taker Fee Rate]


    2. If it is a short position

    MM = (Unhedged Position Value × Maintenance Margin Rate) + [Hedged Position Value × (1 + 1 / Leverage)  × Taker Fee Rate  × 2] + [Unhedged Position Value × (1 + 1 / Leverage)  × Taker Fee Rate]


    Position with Lower Value:

    1. If it is a long position

    MM = Hedged Position Value × (1 − 1 / Leverage)  × Taker Fee Rate  × 2


    2. If it is a short position

    MM = Hedged Position Value × (1 + 1 / Leverage)  × Taker Fee Rate  × 2

    Maintenance Margin (for Borrowed Assets)

    The amount of maintenance margin occupied by the asset that has triggered auto borrowing

    Borrowed Amount × MM Rate by Borrowed Asset

    Maintenance Margin Rate (for Borrowed Assets)

    The rate of margin required to maintain borrowed assets

    4%






     

     

     

    Definition

    Haircut Loss

    If the collateral value ratio is set below 100%, such as 25%, it means that only a fraction of the asset's value, specifically 25%, can be used as collateral. This reduction in the collateral’s value is known as haircut loss. 

     

    For example, Trader Bob buys 1 BTC and pays 20,000 USDT. 

     

    Assuming the collateral value ratio of BTC is 95% and the USD price of BTC is $19,992, the collateral value ratio of USDT is 99.5% and the price of USDT is $0.9996.

    • Collateral Value of BTC: 1 × 19,992 × 95% = $18,992.4

    • Collateral Value of USDT: 20,000 × 0.9996 × 99.5% = $19,892.04

    • Haircut Loss (Difference in Collateral Value) = $19,892.04 - $18,992.4 = $899.64




    Order Loss

    With Perpetual and Futures Trading, users may experience a deviation in order price and current Mark Price. 

     

    If the price of a buy order is higher than the Mark Price, or the price of a sell order is lower than the Mark Price, it will result in an immediate equity loss once the order is filled. This loss is known as the potential loss from pending Perpetual & Futures orders.

     

    For example, if the current Mark Price of a Perpetual contract is $2,000 and Trader Charlie submits 2 buy orders at $2,050, the potential Order Loss is ($2,050-$2,000) × 2 = $100.

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