Collateral Valuation (Unified Wallet)

Primary: Real-Time Indices

We primarily use Real-Time Indices from institutional-grade sources (major exchanges and trading venues). Indices update continuously, offering accurate, stable, and manipulation-resistant pricing.

Details: CF Benchmarks Documentation

Use Cases:

• Margin and liquidation valuations
• Cross-currency conversions

Fallback: Mid Rates

If Real-Time Indices are unavailable, valuations default to Mid Rates from our internal spot USD order books.

Mid Rates are calculated as: Mid Rate= (Best Bid + Best Ask) / 2

Emergency Price

In exceptional cases, the system reverts to the last valid price, clearly flagging potential data staleness.

A haircut is a risk adjustment applied to asset valuations to protect against volatility, liquidity risks, or regulatory requirements.

Collateral Value Calculation:

Collateral Value= Asset Balance × Market Price × (1−Haircut Rate)

Example:

• Asset: 100 USDT
   
• Market Price: $1.00
   
• Haircut: 2% (0.02)
   
• Collateral Value: $98.00
   

Regional Restrictions:

• EEA Users: USDT and DAI carry a 100% haircut (0% collateral value).

• Real-Time Indices: Updated every second
• Mid Rates: Updated live (L1 order book data)
• Haircuts: Adjusted administratively based on market conditions
   

Staleness Protection:

• Automatic fallback to secondary prices
• Conservative valuations during interruptions

KFEE Token:

• Excluded from standard collateral valuation
• Fixed conversion rate (100:1 USD) for fees only
   

Credit Instruments:

• USD Credit fully valued if used per terms
• Separate terms apply to credit lines

Real-time Information:

• Continuous valuation updates
• Haircuts visible in account balance summaries

Email alerts:

• Margin warnings
• Haircut changes
• Regulatory updates

• Regularly monitor collateral valuation and haircut rates.
• Maintain collateral buffers above minimum margin requirements.
• Stay informed about regulatory impacts on your collateral.