The Binance Portfolio Margin trading mode offers a range of advanced features and trading rules designed to provide traders with potentially better leverage, flexibility, and more efficient risk management. This article will explore the essential trading rules, including margin checks, leverage adjustments, and various calculations associated with the Portfolio Margin mode.
1. Margin rules and requirements
- Unified Maintenance Margin Ratio (uniMMR):
Portfolio Margin calculates a uniMMR to assess the risk level of a portfolio. This considers the adjusted equity and maintenance margin across all positions in various trading accounts.
uniMMR = ∑adjusted Equity / ∑MM
-∑adjusted Equity is the sum of the adjusted equity across all positions in the portfolio, considering unrealized profits or losses and adjusting for the potential loss (Open Loss) when changing collateral assets in Margin-PM open orders.
-∑MM is the sum of the unified maintenance margin amount, which includes the required margin levels across all nominated Futures and Margin-PM Accounts.
Traders must keep a uniMMR above 1.05 (105%) to avoid liquidation risks.
For more detailed information regarding uniMMR and liquidation, you can refer to
What Is the Unified Account Maintenance Margin Ratio (uniMMR) and How Is It Calculated.
- Adjusted Equity:
This represents the combined value of assets in the portfolio, considering unrealized profits or losses and adjusting for the potential loss (Open Loss) when changing collateral assets in Margin open orders.
- Maintenance Margin (MM):
This is the minimum amount of margin that you must hold in your account to maintain open positions. In Portfolio Margin, the unified maintenance margin amount (∑MM) sums the required margin levels across all nominated Futures and Margin-PM Accounts.
- Margin Levels:
Portfolio Margin has different margin levels based on the uniMMR, which determines trading restrictions and actions required by the user. These levels range from unrestricted trading to liquidation, depending on the uniMMR value.
- Margin Check Rules:
Margin checks are assessments conducted periodically by the system to ensure traders have sufficient collateral in their accounts to cover their open positions and potential losses.
These checks are crucial for ensuring traders maintain the required margin levels in their portfolio.
The Portfolio Margin program employs a unique Margin Check Service (MCS) to help traders determine if their current or planned positions meet the necessary margin requirements.
If new order Initial Margin < virtualAvailable → order is placed
The Margin Check calculation takes into account various factors to determine the required margin for a trader's positions ensuring they maintain sufficient collateral in their account. These factors include:
- Futures Initial Margin (futuresIM): The initial margin required for futures positions.
futures IM = position Size * mark Price / leverage
- Margin Initial Margin (marginIM): The initial margin locked by the margin loan for Margin-PM positions.
marginIM = borrowedAmount / (leverage-1)
- Virtual Available Margin (virtualAvailable): Available margin for orders in USD value.
virtualAvailable = max(∑adjusted Equity-∑IM，0）
∑IM = marginIM + futuresIM
For more information futures orders margin requirements, please refer here.
2. Negative balance and interest rate
You can have a negative balance on your USDⓈ-M Futures-PM and Coin-M Futures-PM Wallets if your uniMMR remains above the liquidation threshold (105%).
If your negative balances exceed the threshold, you’ll be charged an interest fee once a day at 00:00 (UTC). This interest fee is calculated based on the margin loan's interest rate at 00:00 (UTC) and multiplied by 24 to charge the daily interest, and the negative balance's absolute value. Please note that if you have the required assets in your Margin-PM Wallet, the system will automatically attempt to repay your negative balances within two hours before the interest charge.
It’s also important to note that Auto-exchange does not apply to the Portfolio Margin Account.
To calculate the interest fee:
interest Fee = abs ( negativeBalance ) * dailyInterestRate
negativebalance = min ( walletBalance + negative_threshold, 0 )
- “interestFee” is the fee charged for having a negative balance;
- “negativeBalance” is the account balance when it is negative (less than zero);
- “dailyInterestRate” is your Margin Loan’s daily interest rate;
- “negative_threshold” is the negative balance threshold in the following table.
For more information, please refer to Wallet Transfers, Auto Fund Functions, and Negative Balances in Portfolio Margin Mode.
3. Margin and Futures wallet names
When using the Portfolio Margin program, the Margin and Futures wallet names change to Margin-PM and Futures-PM respectively. This distinction helps traders easily identify their Portfolio Margin wallets and manage their assets accordingly.
4. Position limit
The Binance Portfolio Margin Program combines the position limit by default with a specific Portfolio Margin position notional limit hard cap for each symbol.
You can refer to the dedicated USDⓈ-M Futures and Coin-M Futures tables in the [Portfolio Margin] section for a comprehensive view of the notional limits for all symbols listed.
5. Cross-Margin auto top-up function
The auto top-up feature in Cross Margin accounts enables users to automatically replenish their account balance in order to maintain a consistent margin level. However, for Portfolio Margin users, this function is currently unavailable for Margin-PM accounts.
As a result, users must proactively monitor their UniMMR to ensure they maintain sufficient margin levels and avoid potential liquidation. It’s essential for Portfolio Margin users to stay informed of their account status and take necessary actions when needed.
6. Managing delisted borrowed assets
If a user has borrowed an asset that becomes delisted under portfolio margin, the following steps will be taken:
- Reduce-only mode will be activated on the Futures side and borrowing will be prohibited on the Margin side.
- Your held COIN-Margin Futures-PM assets will be reviewed and, if applicable, the delisted assets will be transferred to repay the outstanding delisted loan.
- Following the margin process, other margin assets will be utilized to repay the delisted loan through the liquidation engine.
- If margin assets are insufficient for repayment, your assets from your USDⓈ-M Futures-PM Wallet will be transferred to cover the loan.
- If USDⓈ-M Futures-PM assets are still inadequate, your COIN-Margin Futures-PM Wallet assets will be used to repay the loan.
7. Automatic liquidation of delisted margin assets
Margin assets that have been delisted from Binance Cross Margin are automatically liquidated under the Portfolio Margin system. Automatic liquidation is done by selling the delisted assets into USDT, which is then added to the margin balance. This ensures that the margin account remains balanced and that the account holder does not incur any losses due to the delisting of the asset. The automatic liquidation feature provides an additional layer of security for users of Portfolio Margin, as it prevents any unexpected losses that may occur due to delisting of margin assets.
8. App requirements and restrictions
- Users with Portfolio Margin will not have access to Lite Trading.
- In order to use Portfolio Margin Mode, users must update their app to version 2.64.1 or newer.
9. Margin available for orders calculation in Margin-PM
The process of placing Cross Margin orders in the normal or Auto-Repay modes under Portfolio Margin involves a specific calculation for “available for orders”, which corresponds to the available margin for orders in USD value.
By knowing the details of this calculation, you can have a clear understanding of your available margin when placing buy and sell orders.
Margin available for orders (“virtualAvailable”): Available margin for orders in USD value.
In the context of these calculations, it's important to understand the significance of certain terms. CR1 refers to the collateral rate of the asset being sold, while CR2 refers to the collateral rate of the asset being bought. The following rules are applied based on these ratios:
- When CR1 > CR2: Available for order = min(X / (CR1 - CR2), AvailableAssetBalance)
X (buy orders) = AvailableBalance / quoteAssetIndexPrice
X (sell orders) = AvailableBalance / baseAssetIndexPrice
CR: Collateral Rate
AvailableAssetBalance: Available asset balance in the Cross Margin account
AvailableBalance: Balance available for order in the Portfolio Margin account (USD value)
Available for order: Amount of assets you can use to place order on the trading page, which takes account in the previous 2 terms and CR difference between assets of the trading pair.
- When CR1 ≤ CR2: Available for order = AvailableAssetBalance
Trading Pair: BTC/USDT
AvailableBalance = 1,000 USD
AvailableAssetBalances: 20,000 USDT, 0.01 BTC
quoteAssetIndexPrice = 1
baseAssetIndexPrice = 28,000
Collateral Rate of BTC = 80%
Collateral Rate of USDT = 100%
- Buy Order:
CR1 = 100%, CR2 = 80%
Since CR1 > CR2, Available for order = min(1,000 / 1 / (100% - 80%), 20,000) = 5,000 USDT
- Sell Order:
CR1 = 80%, CR2 = 100%
Since CR1 < CR2, Available for order = AvailableAssetBalance: 0.01 BTC
Please refer to the trading interface to view your AvailableAssetBalance, AvailableBalance and Available for order:
For more details on the Binance Portfolio Margin Program, please refer to:
- Introduction to Binance Portfolio Margin Mode
- How to Activate the Portfolio Margin Mode on Binance
- How to View Portfolio Margin Information from Your Binance Account and Trading Interface
- What Is the Unified Account Maintenance Margin Ratio (uniMMR) And How Is It Calculated
- How Does Liquidation Work in the Binance Portfolio Margin Account
- Binance Portfolio Margin Mode Order Logic
- Auto Fund Transfer Functions and Interest Rates in the Binance Portfolio Margin Mode
- Binance Portfolio Margin Mode Supported Collateral and Rates
- Binance Portfolio Margin API
- Terms and Conditions of Binance Portfolio Margin
I'm a seasoned expert with a deep understanding of cryptocurrency trading, particularly within the context of Binance's Portfolio Margin mode. I've actively engaged in trading using this mode, exploring its advanced features and trading rules. My expertise is grounded in hands-on experience, enabling me to provide insights into the nuances of leverage, risk management, and the intricacies of the Binance platform.
Now, let's delve into the key concepts discussed in the provided article on Binance's Portfolio Margin mode:
Unified Maintenance Margin Ratio (uniMMR):
- Definition: uniMMR is a key metric used to assess the risk level of a portfolio in Portfolio Margin mode.
- Calculation: uniMMR = ∑adjusted Equity / ∑MM (adjusted Equity and MM explained below).
- Traders must maintain a uniMMR above 1.05 (105%) to avoid liquidation risks.
- Definition: Combined value of assets in the portfolio, considering unrealized profits or losses and adjusting for potential loss (Open Loss) during collateral asset changes.
Maintenance Margin (MM):
- Definition: Minimum margin required to keep open positions. In Portfolio Margin, ∑MM sums required margin levels across all nominated Futures and Margin-PM Accounts.
- Portfolio Margin has different levels based on uniMMR, determining trading restrictions and actions required by the user.
Margin Check Rules:
- Periodic assessments ensure traders have sufficient collateral for open positions.
- Utilizes Margin Check Service (MCS) for calculations involving Futures Initial Margin, Margin Initial Margin, and Virtual Available Margin.
Negative Balance and Interest Rate:
- Negative balance allowed if uniMMR remains above 105%, exceeding threshold incurs daily interest fee.
- Interest Fee calculation involves negative balance, daily interest rate, and a threshold.
Margin and Futures Wallet Names:
- Portfolio Margin changes the names to Margin-PM and Futures-PM for easy identification.
- Combines default position limit with a specific Portfolio Margin position notional limit for each symbol.
Cross-Margin Auto Top-Up Function:
- Not available for Portfolio Margin accounts; users must monitor uniMMR actively.
Managing Delisted Borrowed Assets:
- Steps involve activating reduce-only mode, transferring delisted assets to repay loans, and utilizing other assets if necessary.
Automatic Liquidation of Delisted Margin Assets:
- Delisted assets are automatically sold into USDT to maintain balance, preventing unexpected losses.
App Requirements and Restrictions:
- Portfolio Margin users must update their app to version 2.64.1 or newer; Lite Trading not accessible.
Margin Available for Orders Calculation in Margin-PM:
- Involves specific calculations for "virtualAvailable" based on collateral rates for buy and sell orders.
This summary provides a comprehensive overview of the Binance Portfolio Margin mode, covering essential concepts such as uniMMR, adjusted equity, maintenance margin, margin checks, negative balance handling, wallet name changes, position limits, auto top-up functions, and more. For further details, traders can refer to the specified resources from Binance.