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Collateral Valuation (Unified Wallet)

Last updated: April 10, 2026

Overview

The Unified Wallet uses precise collateral valuation methods for margin calculations, liquidation management, and trading decisions. Below you'll find our approach to asset valuation, price sourcing, and risk adjustments ("haircuts").

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.

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