1. Brief Introduction on Unified Margin System

BIT Unified Margin (UM) system, as an upgraded trading and risk management system launched by the exchange, offers a one-account solution to our customers by allowing them to utilise all assets in the account as collateral to trade all products.

Compared with the classic trading system, the UM trading system has the following features.

1. Brand-new account structure

In the UM mode, users trade through the unified margin account. In this case, you can trade spot, margin, perpetual, futures and options in the same account without transferring funds back and forth between multiple accounts.

2. Multi-currency margin

In the UM mode, all currencies (BTC, ETH, USDT, etc.) in your account will be calculated in USD value with certain haircut ratios to provide margin for all your positions. Also, the overall risk of your account is calculated based on the USD value of the margin. Compared to the classic mode, the UM mode will improve your capital utilization to a certain extent. 

3. Combined calculation of profit and loss for all positions

In the UM mode, the profit and loss of multiple positions you hold will be combined and offset against each other. This means that a loss in a particular position will not necessarily trigger forced liquidation, but only when the overall account risk reaches a critical level (see here).

4. Supporting borrowing for trading

In the UM mode (borrowing), as long as users’ USD total available balance is sufficient, they can sell a currency or trade derivatives even if the available balance of the settlement currency is insufficient. In this case, the system will complete the trade through borrowing. This means that users can trade spot and derivatives settled in all currencies with just one currency as margin.

Table. UM Mode V.S. Classic Mode