BIT calculates the total USD collateral of a unified margin (UM) account based on currency haircut ratios*. The higher the haircut ratio of a currency, the lower the conversion rate of that currency as collateral.
* Which are measured against USD
Based on the risk profile of each currency, BIT classifies them into the following tiers.
Tier |
Currency |
Haircut Ratio |
1 | USD | 0% |
USDT | 0.1% | |
BTC | 2% | |
ETH | 2% | |
2 | BCH | 5% |
3 | ADA | 15% |
BNB | 15% | |
DOGE | 15% | |
LINK | 15% | |
LTC | 15% | |
TRX | 15% | |
XRP | 15% | |
AVAX | 20% | |
DOT | 20% | |
4 | ETC | 30% |
FIL | 30% | |
GALA | 30% | |
MANA | 30% | |
MATIC | 30% | |
MKR | 30% | |
NEAR | 30% | |
SAND | 30% | |
SHIB | 30% | |
TON | 80% | |
5 | AAVE | 40% |
COMP | 40% | |
CRV | 40% | |
SUSHI | 40% | |
UNI | 40% | |
XLM | 40% | |
YFI | 40% | |
AXS | 50% | |
CHZ | 50% | |
FTM | 50% | |
GRT | 50% | |
SOL | 50% | |
6 |
Others |
100% |
Example:
Assuming that the assets of user A's account are as follows, and the BCH haircut ratio is 5%, then when the user's BCH equity is 100 and the USD index price is 300, the effective collateral value is 28,500 USD.
Currency | Quantity/Equity | USD Index Price | Currency Haircut Ratio | Discounted Collateral in USD |
BCH | 100 | 300 | 5% | 28500 |