Announcements Gate.io to Launch Gradient Margin Adjustment Factors Algorithm on March 28

Gate.io to Launch Gradient Margin Adjustment Factors Algorithm on March 28

2024-03-20 10:23:23 UTC 21600 Read

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Dear Gate.io Users,
In our continuous efforts to enhance capital utilization efficiency for small-scale traders and reduce the risk of margin calls on unified accounts, Gate.io will officially implement the Gradient Margin Adjustment Factor Algorithm on March 28. The initial rollout will include BTC, ETH, SOL, and USDC (see the table below for the comparison between old and new coefficients). Other currencies will maintain their current single-tier margin adjustment coefficients temporarily, with adjustments planned in subsequent phases.
![](https://gimg2.gateimg.com/image/171092815511025527baozhengjinyingyu.jpeg)
**New Margin Adjustment Factors**
The new margin adjustment factors are calculated based on a gradient system. Taking BTC as an example, suppose you hold 200 BTC without any outstanding BTC liabilities, and the current BTC index price is 70,000 USD. According to the latest gradient margin adjustment coefficient table for BTC, the value of these 100 BTC available as collateral can be determined as follows:
Total USD value of 100 BTC as collateral = (5 million * 1) + (5 million * 0.97) + (4 million * 0.95) =  13.65 million

For detailed calculations of the new gradient margin adjustment coefficients, please refer to the <a  rel="nofollow noopener noreferrer"  data-type="gate-activity" href="/help/unified_account/risk_control_mechanism/33018/about-margin-and-terminology-in-unified-account">About Margin and Terminology in Unified Account</a> document.
For real-time margin adjustment coefficients for all currencies, please visit the <a  rel="nofollow noopener noreferrer"  data-type="gate-activity" href="/loan-info">Borrowing Rate and Loan Cap</a> page.

Additionally, Gate.io has already launched a corresponding new API endpoint for querying this new gradient-based Margin Adjustment Factor. For more information, please refer to: <a  rel="nofollow noopener noreferrer"  data-type="gate-activity" href="/docs/developers/apiv4/en/#list-currency-discount-tiers">list currency discount tiers</a>. The original querying endpoint remains unchanged; however, the returned parameters will become less precise after the first batch of gradient-based margin adjustment coefficients takes effect. OpenAPI clients are advised to prepare for migration to the new endpoint.

This adjustment affects unified account products. Other products such as isolated margin trading and collateralized lending are not impacted by this adjustment.

**Important Reminders:**
● If your liabilities for a specific currency are below the tier corresponding to the original coefficient, your account's initial margin rate will increase, thereby improving capital utilization efficiency.
● If your liabilities for a specific currency exceed the tier corresponding to the original coefficient, your account's initial margin rate will decrease. Please closely monitor your account's risk. If your account's margin rate falls below 100%, certain orders will be canceled upon the implementation of the new coefficients to restore it to above 100%. Maintaining a margin rate below 100% will trigger liquidation. To mitigate risks, you can deposit more collateral currencies, reduce debt size, or decrease contract positions.

If you have any questions, please contact your account manager or email institutional@gate.io.

Thank you for your understanding and continued support.

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Gate.io Team
March 28, 2024

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Gate.io to Launch Gradient Margin Adjustment Factors Algorithm on March 28

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