Unified Trading Account: Key Terms and Core Formulas

2026-09-21 09:35

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[Estimated reading time: 5 minutes]

1. Account-level terms and formulas

Account-level terms describe the risk and fund status of the entire unified trading account, rather than those of an individual asset or position. They are key to determining whether you can open new positions and whether your account is at risk of liquidation.

Term	Definition	Formula
Total account asset value	The total USD value of all assets in the account before applying collateral ratios—essentially the account's gross value.	∑ (coin equity × coin USD price). Coins with negative equity are included and reduce the total asset value.
Adjusted equity	The total effective margin available in the account (in USD) after applying collateral ratios and accounting for losses from open orders. It serves as the basis for account-level risk calculations.	Adjusted equity = effective margin from positive-equity coins − loss from negative-equity coins − loss from spot orders Effective margin from positive-equity coins = ∑ max(0, coin equity − isolated margin used) × USD price × collateral ratio Loss from negative-equity coins = ∑ abs[min(0, coin equity − isolated margin used)] × USD price Loss from spot orders = Value of open orders × (collateral ratio of the coin sold − collateral ratio of the coin bought)
Collateral ratio	The percentage of an asset's value that counts toward adjusted equity, based on the asset's liquidity. USDT is subject to little or no haircut, while major cryptocurrencies are subject to tiered haircuts based on the amount held, and smaller-cap assets generally have lower collateral ratios.	Adjusted value = coin quantity × USD price × collateral ratio
Available margin	The amount of margin currently available for opening new positions.	Max(0, adjusted equity − initial margin − funding fee reserve)
Initial margin (IM)	The margin currently locked by all open positions and orders, representing the margin required to open positions.	Initial margin (IM) = borrowing IM + derivatives IM Borrowing IM = liability amount × index price ÷ leverage Derivatives IM = ∑ for each trading pair, max(long position IM + long order IM, short position IM + short order IM)
Maintenance margin (MM)	The minimum amount of margin required to maintain existing positions.	Maintenance margin (MM) = borrowing MM + derivatives MM Borrowing MM = liability amount × MMR Derivatives MM = ∑ for each trading pair, max(long position MM + long order MM, short position MM + short order MM)
Initial margin rate (IMR)	The ratio of initial margin to adjusted equity. When the IMR reaches 100% or higher, the system automatically cancels applicable open orders. Only futures orders that increase positions are canceled; closing and reduce-only orders are not affected.	Initial margin ÷ adjusted equity × 100%
Maintenance margin rate (MMR)	The ratio of maintenance margin to adjusted equity. It is the key metric used to determine risk warnings, tiered deleveraging, and liquidation.	Maintenance margin (MM) ÷ adjusted equity × 100%
Funding fee reserve	The amount reserved in advance from available margin for the next funding fee payment, helping prevent insufficient margin at settlement. The reserve applies only when the funding rate is positive and longs pay funding fees; no reserve is made when shorts pay.	USDT/USDC-M futures: position size × mark price × funding rate × USD price of the quote currency

MMR risk thresholds:

MMR range	Status	Platform action
< 90%	Safe	No action
90% – 100%	Warning	Sends a liquidation warning via email, SMS, and site message (once every four hours)
100%–160%, and the account returns to a safe level after tiered deleveraging	Danger	Automatically reduces positions by tier
≥ 160%, or account equity ≤ 0	Extreme danger	Triggers full-account liquidation

2. Asset-level terms and formulas

Asset-level terms describe the status of an individual asset within the account. They help explain why your available margin may be lower than your total account assets and why the account may show an outstanding liability for a particular asset.

Term	Definition	Formula
Coin equity	The net value of a particular coin in the account, including unrealized futures PnL.	Balance − borrowed amount + amount in use + unrealized PnL from cross margin positions
Coin available balance	The amount of a coin that can be used immediately for placing orders or making transfers, excluding amounts frozen by open orders or isolated margin positions.	Balance + unrealized PnL from cross-margin positions
Amount in use	The portion of an asset currently tied up in spot and margin open orders, as well as isolated margin futures positions and orders.	Amount frozen by spot orders + amount frozen by margin orders + isolated margin futures position equity + margin used by isolated margin futures orders
Liabilities	The amount of a coin treated as a liability for margin calculations, primarily for calculating borrowing IM and MM.	abs[min(0, balance − borrowed amount + unrealized PnL from cross margin positions)]
Available unrealized PnL	Unrealized profit calculated using the most conservative executable price rather than the mark price, helping prevent overestimation and premature asset transfers.	Long: [min(mark price, best bid price, last traded price) − average entry price] × position size Short: [average entry price − max(mark price, best ask price, last traded price)] × position size

3. Position- and futures-level terms and formulas

Position-level terms describe the PnL, margin, and liquidation price of an individual isolated margin position or futures position.

Term	Definition	Formula
Isolated margin position equity	The current net value of an isolated margin position.	Position margin + unrealized PnL
Isolated margin position margin	The actual amount of margin allocated to an isolated margin position.	Initial margin + additional margin added − margin removed + settled funding fees
Unrealized PnL (isolated margin)	The current unrealized PnL of an isolated margin position.	Position direction × (mark price − average entry price) × position size, where long = +1 and short = −1
Initial margin (IM) in isolated margin mode	The margin required to open a position or place an order in isolated margin mode.	Position IM = position size × average entry price × (1 ÷ leverage + taker fee rate); Order IM = order size × order price × (1 ÷ leverage + 2 × taker fee rate)
Estimated liquidation price	The estimated price at which the position will be liquidated based on the current position margin. If the calculated value is ≤ 0, "--" is displayed, indicating that the position is not currently expected to be liquidated.	Average entry price − position direction × (position margin − maintenance margin − reserved fee) ÷ position size
ROI	The current PnL of a position as a percentage of its initial margin. As a rough approximation, ROI is equal to the price change multiplied by leverage.	Unrealized PnL ÷ initial margin × 100%
Maximum open size (cross margin)	The maximum futures position size that can currently be opened for a given trading pair.	Min(M1 margin limit, M2 tier limit ÷ reference price), where M1 = available margin × (1 − buffer) ÷ (reference price ÷ leverage + reference price × 2 × taker fee rate)
Maximum open size (isolated margin)	The maximum futures position size that can currently be opened in isolated margin mode.	Min(M1, tier cap ÷ reference price − current position), where M1 = min(settlement asset balance, equivalent available amount of the settlement asset) ÷ (reference price ÷ leverage + reference price × 2 × taker fee rate)
Spot available quantity	The maximum quantity of an asset that can be used to place a spot order.	When futures positions or liabilities exist: min[max(0, quote currency balance − borrowed amount + available unrealized PnL), quantity available based on margin]
Spot transferable quantity	The maximum quantity of an asset that can be transferred from the unified trading account to the funding account.	Max(0, min[max(0, balance − borrowed amount + available unrealized PnL), quantity supported by available margin])
Borrowed transferable quantity	The amount that can be transferred out using borrowed funds without first repaying the liability. This feature is disabled by default and must be enabled manually.	Min[remaining borrowing limit, max(0, available margin × (1 − 1%) − margin-equivalent value of the spot transferable quantity) ÷ ((1 + 1 ÷ leverage) × coin USD price)]
ADL score (profitable positions)	If losses exceed the insurance fund's capacity, profitable positions are automatically reduced in descending order of ADL score. A higher score means the position is more likely to be deleveraged first.	Position ROI × account MMR, where position ROI = unrealized PnL ÷ \| average entry price × position size \|

4. Glossary

The following terms do not involve specific formulas but are frequently used when explaining how the unified trading account works and when responding to common user questions. They are listed separately here in a glossary format similar to Bybit's.

Term	Definition
Isolated margin mode	An account mode in which each asset uses a separate margin pool. It supports spot trading and futures trading in isolated margin mode, with position risk isolated from other positions. Cross margin trading and futures trading in cross margin mode are not supported.
Basic mode	An account mode that uses a cross asset margin pool. It supports spot trading and cross margin trading, with stablecoins used as collateral. Isolated margin and custom collateral settings are not supported.
Advanced mode	An account mode that combines cross-asset cross margin with isolated margin. It supports all four trading types, allows multiple assets to contribute to margin based on their collateral ratios, and supports custom collateral settings.
Delta-neutral mode	An account mode built on Advanced mode that supports delta-neutral hedging strategies. It is available to eligible VIP 3 users and above.
Custom collateral	A feature in Advanced mode that lets users choose which assets count toward adjusted equity. USDT is mandatory and cannot be disabled. USDC is enabled by default but can be disabled. Up to 200 assets can be selected.
Auto-borrow and auto-repay	When the net value of an asset falls below zero because of trading activity or unrealized losses, the system automatically borrows that asset. Subsequent proceeds, realized profits from closed positions, or deposits are automatically used to repay the liability first.
Risk-triggered order cancellation	Triggered when IMR reaches 100% or higher. The system automatically cancels open cross-margin futures orders that would increase a position. Spot and margin orders, closing orders, and reduce-only orders are not affected.
Tiered deleveraging	When MMR is between 100% and 160% and reducing the applicable risk tier can return the account to a safe level, the system automatically reduces part of the position to lower account risk. This is different from full-account liquidation.
Liquidation	When MMR is between 100% and 160% and reducing the applicable risk tier can return the account to a safe level, the system automatically reduces part of the position to lower account risk. This is different from full-account liquidation.
ADL (auto-deleveraging)	Triggered when the insurance fund account's assets plus unrealized PnL are ≤ 0. The system automatically reduces corresponding profitable positions, with higher-leverage positions generally given higher priority. The deleveraging price will not be lower than the user's liquidation price.
Reduce only	An order setting that can only reduce an existing position and cannot increase it. Reduce-only orders do not count toward IM or MM and do not require additional margin. This setting applies only to one-way futures position mode.
Order by notional value	A method of placing an order by entering its notional value, such as an amount in USDT. The system calculates the corresponding quantity based on the market price. Leverage does not affect the notional value; it only affects the amount of margin required.
Reference price	The price used to calculate the maximum open size and margin requirements. For buys, the order price is used. For sells, the higher of the order price, current best ask price, and last traded price is used to keep risk calculations conservative.
Interest-free quota	The amount of an asset that can be borrowed without incurring interest. Interest is charged only on the amount exceeding this limit. For example, the interest-free quota for USDT may be 10,000 USDT.
Quick repayment	A feature that automatically identifies account liabilities and uses assets with positive balances to repay them. It is unavailable when MMR is 90% or higher; account risk must first be reduced.
BGB fee deduction	When enabled, transaction fees are paid with BGB first and may qualify for a discount (20% off for spot; 20% off for futures, disabled by default). If the BGB balance is insufficient, the full fee is charged in the original fee currency.
Automatic transfer of small balances	Assets worth less than 0.1 USD whose balances have not changed for 24 hours are automatically transferred to the funding account every seven days to consolidate small residual balances. This feature does not apply to standard or virtual subaccounts.
Unrealized profit transfer limit	For users who are not on the whitelist, unrealized profit can contribute to the spot transferable amount, but the total transferable amount remains subject to margin sufficiency limits. Whitelisted users, such as market makers and Pro accounts, are not subject to this restriction.
Pre-market order placement	A feature that allows eligible users to place orders before trading officially opens for a newly listed asset. It is limited to market-maker and whitelisted accounts, supports maker-only limit orders, and is available only in the live trading environment.

Appendix: Quick reference

Parameter name	Formula (simplified)
Adjusted equity	∑ (coin equity × USD price × collateral ratio) − loss from negative-equity assets − loss from open orders
Initial margin (IM)	Borrowing IM + derivatives IM (for each trading pair, the higher of the long-side and short-side IM is used)
Maintenance margin (MM)	Borrowing MM + derivatives MM (calculated progressively by risk tier)
Available margin	Adjusted equity − initial margin − funding fee reserve
IMR	Initial margin ÷ adjusted equity (≥ 100% triggers risk-triggered order cancellation)
MMR	Maintenance margin ÷ adjusted equity (≥ 90% triggers a warning; 100%–160% triggers tiered deleveraging; ≥ 160% triggers liquidation)
Coin equity	Balance − borrowed amount + amount in use + unrealized PnL from cross margin positions
Liabilities	Abs[min(0, balance − borrowed amount + unrealized PnL from cross margin positions)]
Estimated liquidation price (isolated margin)	Average entry price ± (position margin − maintenance margin) ÷ position size
ROI	Unrealized PnL ÷ initial margin
Spot transferable quantity	Min(balance − borrowed amount + available unrealized PnL, quantity supported by available margin)

*This announcement is time-sensitive. Please note the date of publication. The platform assumes no responsibility for any direct or indirect losses arising from changing circumstances or outdated content.

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1. Account-level terms and formulas
2. Asset-level terms and formulas
3. Position- and futures-level terms and formulas
4. Glossary
Appendix: Quick reference

Unified Trading Account: Key Terms and Core Formulas