Bit.com 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.com classifies them into the following tiers.
For example, if a user holds 10 BCH in the UM account, haircut ratio is 5% and currency index is 500, the calculated USD collateral in the account would be 10*500*(1 - 5%) = 4750 USD.
|
Tier |
Currency |
Haircut ratio |
Discounted collateral in USDT |
|
1 |
USD |
0% |
Currency index*100% |
|
2 |
USDT |
0.1% |
Currency index*99% |
|
3 |
BTC, ETH |
2% |
Currency index*98% |
|
4 |
BCH |
5% |
Currency index*95% |
|
5 |
DOGE, SHIB |
15% |
Currency index*85% |
| 6 |
LEASH |
70% |
Currency index*30% |
| 7 |
Others |
100% |
Currency index*0% |