Collateral is used when borrowing assets on WOO X. You are borrowing assets when trading with leverage or shorting a position.
Collateral ratio
WOO X will set a collateral rate (discount) for each token based on the liquidity and volatility of each token into reference.
Please see ▶ Collateral ratio.
Total Collateral
Total collateral is the total collateral value based on the spot holdings and interest.
Collateral of a token = (holding + interest) * index price * discount
Total collateral is the sum of all collateral.
*discount = collateral ratio, if holding + interest >= 0
*discount = 1 if holding + interest < 0
Adjusted Collateral
Adjusted collateral is the total collateral value with pending orders taken into account.
Adjusted collateral = Total collateral - (pending orders), which is (asset quantity*asset price* collateral ratio).
*discount = collateral ratio, if holding + interest + pending order quantity >=0
*discount = 1 if holding + interest + pending short quantity < 0
For example: Here are some scenarios if the BTC price is 10,000 $USDT with a collateral ratio of 0.85 (USDT’s collateral ratio is 1).
Balance |
Interest(USDT)
|
Total Collateral
|
Pending order
|
Adjusted Collateral
|
||
BTC | USDT |
BTC
|
USDT
|
|||
1 | 100 | 5 | 8,595 | 0 | 0 | 8,595 |
0 | 10,100 | 5 | 10,095 | 0 | 0 | 10,095 |
-1 | 10,100 | 5 | 1595 | 0 | 0 | 1595 |
1 | -5,000 | 5 | 3,495 | 0 | 0 | 3,495 |
1 | 100 | 5 | 8,595 | -1 | 10,050 | 95 |
0 | 10,100 | 5 | 10,095 | 1 | 9,900 | 195 |
0 | 10,100 | 5 | 10,095 | -1 | 10,050 | 45 |