Key Terms and Formulas in Unified Wallet

The total nominal value of all assets in your wallet without any risk adjustments.

Formula: Balance Value = Σ(Asset Balance × Market Price)

Example:

• 1,000 USDT at $1.00 = $1,000
• 0.5 BTC at $50,000 = $25,000
• Total Balance Value = $26,000

The adjusted value of your assets after applying haircuts, used for margin calculations.

Formula: Collateral Value = Σ(Asset Balance × Market Price × (1 - Haircut Rate))

Example:

• 1,000 USDT: 1,000 × $1.00 × (1 - 0.02) = $980
• 0.5 BTC: 0.5 × $50,000 × (1 - 0.10) = $22,500
• Total Collateral Value = $23,480

Your total account value including unrealized profits and losses.

Formula: Equity = Collateral Value + Unrealized PnL

The minimum collateral required to open a new position.

Formula: Initial Margin = Position Size × Price × Initial Margin Rate

Example:

• Position: 10 BTC futures
• Price: $50,000
• IM Rate: 5%
• Initial Margin = 10 × $50,000 × 0.05 = $25,000

The minimum collateral required to keep a position open.

Formula: Maintenance Margin = Position Size × Price × Maintenance Margin Rate

Actual Relationship: Maintenance Margin Rate = 0.8 (80% of spot margin requirements)

The amount of collateral available for new positions or to absorb losses.

Formula (without orders): Available Margin = Equity + Derivatives Unrealized PnL - Initial Margin Requirements

Formula (with orders): Available Margin = Equity + Derivatives Unrealized PnL - Spot Margin - Withheld - Initial Margin - Derivatives Margin Requirements (with orders)

Alternative calculation that may include additional factors.

Formula: Free Margin = Equity - Margin Requirements - Withheld Funds

A percentage indicating your account's health relative to margin requirements.

Formula: Margin Level = (Collateral Value + Unrealized PnL) / Margin Requirements × 100%

Interpretation:

• > 200%: Healthy account
• 100-200%: Approaching margin call
• < 100%: Liquidation risk

The price at which your position will be automatically closed.

For Long Positions: Liquidation Price = Entry Price × (1 - (Collateral Value / Position Value - Maintenance Margin Rate))

For Short Positions: Liquidation Price = Entry Price × (1 + (Collateral Value / Position Value - Maintenance Margin Rate))

The margin level that triggers warnings and potential liquidation.

Typical Values:

• Warning Level: 150%
• Liquidation Level: 100%
• Auto-Conversion Trigger: 120%

The total profit or loss from all open positions.

Formula: Unrealized PnL = Σ(Position Size × (Current Price - Entry Price))

The portion of unrealized PnL that can be used as collateral.

Formula: Unrealized PnL as Margin = max(0, Unrealized PnL × Margin Credit Factor)

Note: Only profits typically count as margin; losses reduce available collateral.

Institutional-grade price feeds used for collateral valuation.

Characteristics:

• Time-weighted average prices
• Multiple source aggregation
• Manipulation resistant
• Updated every few seconds

Fallback pricing based on order book data.

Formula: Mid Rate = (Best Bid + Best Ask) / 2

The percentage of an asset's value that counts toward collateral.

Formula: Effective Collateral = Asset Value × Equity Value

Common Equity Values:

• USD, EUR, GBP: 1.00 (0% haircut)
• USDC: 0.98-0.99 (1-2% haircut)
• BTC, ETH: 0.97-0.98 (2-3% haircut)
• Altcoins: 0.5-0.97 (3-50% haircut)

The threshold that activates automatic collateral conversion.

Formula:

USD_Shortfall = USD_Balance + Unrealized_PnL

Trigger_Condition = USD_Shortfall < Trigger_Threshold

The amount of collateral to convert during auto-conversion.

Formula: Required_Conversion = max(0, Trigger_Threshold - Current_Shortfall)

The deficit in collateral value that needs to be addressed.

Formula: Collateral_Shortfall = Collateral_Value + Unrealized_PnL - Required_Margin

The amount of credit available for trading.

Formula: Available_Credit = Credit_Limit - Credit_Used

Margin level calculation when using credit facilities.

Formula: Credit_Margin_Level = (Collateral - Credit_Used) / Credit_Used × 100%

Factor used to determine collateral requirements for credit.

Formula: Required_Collateral = Credit_Used × Collateral_Multiplier

All assets converted to USD equivalent for margin calculations.

Available Margin: Available_Margin = Collateral_Value_USD + Total_Unrealized_As_Margin - Initial_Margin_With_Orders

No haircuts applied; calculations in wallet's native currency.

Available Margin: Available_Margin = Balance_Value + Unrealized_PnL - Margin_Requirements

Combines spot and futures with cross-margining.

Total Available Margin: Available_Margin = Spot_Collateral_Value + Futures_Collateral_Value + Net_Unrealized_PnL - Total_Margin_Requirements

The ratio of position value to collateral.

Formula: Leverage_Ratio = Total_Position_Value / Collateral_Value

The sensitivity of your portfolio to price changes.

Formula: Portfolio_Delta = Σ(Position_Size × Delta_Per_Unit)

Estimated maximum loss over a specific time period.

Simplified Formula: VaR = Portfolio_Value × Volatility × Confidence_Factor × √Time_Period

Special rate for fee token conversions.

Formula:

KFEE_USD_Rate = 100:1 (fixed)

KFEE_Available_USD = KFEE_Balance / 100

The sequence for fee payment deduction:

1. KFEE tokens (with discount)
2. Native pair currency
3. USD equivalent
4. Other available assets (with conversion)

• Maintenance Margin Rate: 0.8 (80% of spot margin requirements)
• Liquidation Margin Rate: 0.4 (40% of spot margin requirements)

• High Price Precision: Used for internal calculations
• Asset Decimals: Varies by asset (e.g., BTC: 8, USD: 2)
• Percentage Scale: -4 (for 0.01% precision)

Account Holdings:

• 10,000 USDT (2% haircut)
• 1 BTC (10% haircut)
• BTC price: $50,000

Calculations:

USDT Collateral = 10,000 × (1 - 0.02) = $9,800

BTC Collateral = 1 × $50,000 × (1 - 0.10) = $45,000

Total Collateral = $54,800

Position: : Long 2 BTC futures at $50,000 Collateral: $20,000 Maintenance Margin: 5%

Calculation:

Position Value = 2 × $50,000 = $100,000

Required Maintenance = $100,000 × 0.05 = $5,000

Liquidation Price ≈ $50,000 × (1 - ($20,000/$100,000 - 0.05)) = $42,500

• All formulas assume USD as the reference currency unless specified
• Actual calculations may include additional factors for specific account types
• Rates and thresholds may vary based on market conditions and risk management policies
• Regional regulations may modify certain calculations