Collateral on FTX is calculated in USD value terms. We follow a multi-currency cross-margining methodology and thereby accept a variety of non-USD assets as collateral for derivatives and spot margin positions. The PnL is always settled in USD regardless of which type of collateral is used.
The user can choose whether to use FTT as collateral on the settings page. By default the account uses FTT as collateral.
List of Non-USD Collateral
Coin | Weight (total) | Weight (initial) | IMF factor |
1INCH | 0.9 | 0.85 | 0.0005 |
AAPL | 0.9 | 0.85 | 0.00125 |
AAVE | 0.9 | 0.85 | 0.0025 |
ABNB | 0.9 | 0.85 | 0.005 |
ACB | 0.9 | 0.85 | 0.0025 |
ALGO | 0.95 | 0.9 | 0.00015 |
ALPHA | 0.9 | 0.85 | 0.00025 |
AMC | 0.9 | 0.85 | 0.0025 |
AMD | 0.9 | 0.85 | 0.001 |
AMZN | 0.9 | 0.85 | 0.003 |
APE | 0.95 | 0.9 | 0.0005 |
APHA | 0.9 | 0.85 | 0.001 |
ARKK | 0.9 | 0.85 | 0.005 |
ASD | 0.7 | 0.65 | 0.0001 |
ATOM | 0.9 | 0.85 | 0.0005 |
AUD | 0.99 | 0.98 |
0.00001 |
AVAX | 0.9 | 0.85 |
0.0007 |
BABA | 0.9 | 0.85 | 0.0025 |
BAND | 0.85 | 0.8 | 0.001 |
BB | 0.9 | 0.85 | 0.0025 |
BCH | 0.95 | 0.9 | 0.0008 |
BILI | 0.9 | 0.85 | 0.005 |
BITW | 0.9 | 0.85 | 0.001 |
BNB | 0.95 | 0.9 | 0.0005 |
BNT | 0.9 | 0.85 | 0.0025 |
BNTX | 0.9 | 0.85 | 0.002 |
BRL | 0.99 | 0.98 | 0.00001 |
BRZ | 0.99 | 0.98 | 0.00001 |
BTC | 0.975 | 0.95 | 0.002 |
BTMX | 0.7 | 0.65 | 0.0008 |
BUSD | 1 | 1 | 0 |
BVOL | 0.85 | 0.8 | 0.005 |
BYND | 0.9 | 0.85 | 0.0075 |
CAD | 0.99 | 0.98 | 0.00001 |
CEL | 0.85 | 0.8 | 0.001 |
CGC | 0.9 | 0.85 | 0.0025 |
CHF | 0.99 | 0.98 | 0.00001 |
COIN | 0.85 | 0.8 | 0.01 |
COMP | 0.9 | 0.85 | 0.002 |
CRON | 0.9 | 0.85 | 0.001 |
CUSDT | 0.9 | 0.85 | 0.000005 |
DAI | 0.9 | 0.85 | 0.00005 |
DOGE | 0.95 | 0.9 | 0.00002 |
DOT | 0.9 | 0.85 | 0.0002 |
ETH | 0.95 | 0.9 | 0.0004 |
ETHE | 0.9 | 0.85 | 0.0025 |
EUR | 0.99 | 0.98 | 0.00001 |
EURT | 0.975 | 0.95 | 0.0005 |
FB | 0.9 | 0.85 | 0.002 |
FIDA | 0.85 | 0.8 | 0.001 |
FTM | 0.85 | 0.8 | 0.0005 |
FTT | 0.95 | 0.95 | 0.0005 |
GBP | 0.99 | 0.98 | 0.00001 |
GBTC | 0.9 | 0.85 | 0.0025 |
GDX | 0.9 | 0.85 | 0.0005 |
GDXJ | 0.9 | 0.85 | 0.003 |
GLD | 0.9 | 0.85 | 0.0005 |
GLXY | 0.9 | 0.85 | 0.005 |
GME | 0.9 | 0.85 | 0.005 |
GOOGL | 0.9 | 0.85 | 0.01 |
GRT | 0.9 | 0.85 | 0.00025 |
HKD | 0.99 | 0.98 | 0.00001 |
HOLY | 0.9 | 0.85 | 0.0005 |
HOOD | 0.85 | 0.8 | 0.005 |
HT | 0.9 | 0.85 | 0.0003 |
IBVOL | 0.85 | 0.8 | 0.015 |
KNC | 0.95 | 0.9 | 0.001 |
LEO | 0.85 | 0.8 | 0.001 |
LINK | 0.95 | 0.9 | 0.0003 |
LRC | 0.85 | 0.8 | 0.0005 |
LTC | 0.95 | 0.9 | 0.0004 |
LUNC | 0.9 | 0.85 | 0.0001 |
MATIC | 0.85 | 0.8 | 0.00004 |
MKR | 0.9 | 0.85 | 0.007 |
MOB | 0.6 | 0.55 | 0.005 |
MRNA | 0.9 | 0.85 | 0.001 |
MSTR | 0.9 | 0.85 | 0.008 |
NEAR | 0.95 | 0.9 | 0.001 |
NFLX | 0.9 | 0.85 | 0.0025 |
NIO | 0.9 | 0.85 | 0.0008 |
NOK | 0.9 | 0.85 | 0.001 |
NVDA | 0.9 | 0.85 | 0.01 |
OKB | 0.9 | 0.85 | 0.0003 |
OMG | 0.85 | 0.8 | 0.001 |
USDP | 1 | 1 | 0 |
PAXG | 0.95 | 0.9 | 0.002 |
PENN | 0.9 | 0.85 | 0.005 |
PFE | 0.9 | 0.85 | 0.001 |
PYPL | 0.9 | 0.85 | 0.002 |
RAY | 0.85 | 0.8 | 0.0005 |
REN | 0.9 | 0.85 | 0.00025 |
RSR | 0.85 | 0.8 | 0.0001 |
SECO | 0.9 | 0.85 | 0.0005 |
SLV | 0.9 | 0.85 | 0.0005 |
SNX | 0.85 | 0.8 | 0.001 |
SOL | 0.9 | 0.85 | 0.0003 |
STSOL | 0.9 | 0.85 | 0.0004 |
MSOL | 0.9 | 0.85 | 0.0004 |
SPY | 0.9 | 0.85 | 0.0005 |
SQ | 0.9 | 0.85 | 0.002 |
SRM | 0.9 | 0.85 | 0.0005 |
SUSHI | 0.95 | 0.9 | 0.0004 |
SXP | 0.9 | 0.85 | 0.0005 |
TLRY | 0.9 | 0.85 | 0.001 |
TOMO | 0.85 | 0.8 | 0.0005 |
TRX | 0.9 | 0.85 | 0.00001 |
TRY | 0.99 | 0.98 | 0.00001 |
TRYB | 0.9 | 0.85 | 0.00001 |
TSLA | 0.9 | 0.85 | 0.01 |
TSM | 0.9 | 0.85 | 0.003 |
TUSD | 1 | 1 | 0 |
TWTR | 0.9 | 0.85 | 0.001 |
UBER | 0.9 | 0.85 | 0.001 |
UNI | 0.95 | 0.9 | 0.0005 |
USD | 1 | 1 | 0 |
USDC | 1 | 1 | 0 |
USDT | 0.975 | 0.95 | 0.000005 |
USO | 0.9 | 0.85 | 0.001 |
USTC | 0.85 | 0.8 | 0.0005 |
WBTC | 0.975 | 0.95 | 0.005 |
WUSDC | 1 | 1 | 0 |
WUSDT | 0.975 | 0.95 | 0.00001 |
XAUT | 0.95 | 0.9 | 0.002 |
XRP | 0.95 | 0.9 | 0.00002 |
YFI | 0.9 | 0.85 | 0.015 |
ZAR | 0.99 | 0.98 | 0.00001 |
ZM | 0.9 | 0.85 | 0.002 |
ZRX | 0.85 | 0.8 | 0.0003 |
Note: Always use https://ftx.com/api/wallet/coins as the source of truth.
Definitions & Formulas
Term | Definition | Formula |
USD collateral | USD, and a selection of USD stablecoins that are valued 1:1 with USD. | Stablecoins valued 1:1 with USD: USDC, TUSD, USDP, BUSD. |
Non-USD collateral |
Alternative assets accepted as collateral. | See list of non-USD collateral accepted here. |
Initial Weight | Factor used to determine the collateral value for the purpose of initial margin if spot margin is not enabled (i.e., opening new leverage positions) | See Non-USD collateral table above. |
Total Weight | Factor used to determine the collateral value for the purpose of maintenance margin calculation and opening new positions if spot margin is enabled. | See Non-USD collateral table above. |
IMF factor | Multiplier assigned to each asset on FTX. It is set based on factors such as liquidity or market capitalization. | See Non-USD collateral table above. |
Collateral Used | Total of collateral being used by all open derivatives or spot margin positions in the subaccount, as well as collateral tied up in open orders, including spot. | sum (Position1 Open Size Notional * Position1 IMF, Position2 Open Size Notional * Position2 IMF,...) + sum(Spot Order1 Size * Mark Price, Spot Order2 Size * Mark Price,...) |
Free collateral | Total collateral available that can be used for opening new positions and withdrawn from the exchange, excluding collateral locked in open orders or open positions. | min(collateral, collateral + unrealized PNL) - (amount of collateral tied up in open orders) |
Collateral Contribution |
Multiplier used to determine the total value of your collateral. | min (1.1 / [IMF Weight * {1.1 / Total Weight - 1} + 1] , 1.1 / [Spot Margin IMF Factor * sqrt{size} * IMF Weight + 1] ) If spot margin is enabled, Weight = Total Weight. Otherwise, Initial Weight. |
Collateral Value | Collateral value of each asset in your inventory | For positive balances, the collateral value is calculated as follows: = Size * Mark Price * Collateral Contribution For negative balances the collateral value is calculated as follows: = Size * Mark Price |
Total Account Collateral |
Sum of positive and negative collateral values | Sum(Collateral Value 1, Collateral Value 2,..) |
Examples
Let’s assume you're currently holding the following balances and that spot margin is enabled in your account:
Asset |
Size |
Mark Price |
Notional USD |
Initial Weight |
Total Weight |
IMF Factor |
USD |
100,000 |
$1 |
$100,000 |
1 |
1 |
- |
BTC |
2.5 |
$20,000 |
$50,000 |
0.95 |
0.975 |
0.002 |
ETH |
10 |
$1,500 |
$15,000 |
0.90 |
0.95 |
0.0004 |
Total (USD) |
$165,000 |
Calculating Total Collateral Value
To start, let's first calculate the Collateral Contribution of the assets you're currently holding.
For BTC:
= min (1.1 / [IMF Weight * {1.1 / Total Weight - 1} + 1] , 1.1 / [Spot Margin IMF Factor * sqrt{size} * IMF Weight + 1] )
= min (1.1 / [1 * {1.1 / 0.975 - 1} + 1], 1.1 / [0.002 * sqrt(2.5) * 1 + 1] )
= min (0.975, 1.09653246)
= 0.975
That means that the Collateral Value of your BTC will equal:
$50,000 * 0.975 = $48,750.
Applying the same formula to the rest of your assets:
Asset |
Notional USD |
Contribution |
Total Collateral Value |
USD |
$100,000 |
1 |
$100,000 |
BTC |
$50,000 |
0.975 |
$48,750 |
ETH |
$15,000 |
0.95 |
$14,250 |
Total |
$165,000 |
- |
$158,000 |
Note: In the vast majority of cases, Collateral Contribution will simply be either the asset’s Initial Weight or Total Weight, depending on whether you have spot margin enabled or not. However, if you hold a significant balance of a single coin, its Collateral Contribution may go down.
As an example, imagine that instead of 2.5 BTC, you're holding 10,000 BTC in your account, which would be equal to $200,000,000 assuming BTC is trading at $20,000. The Collateral Contribution for your BTC would be as follows:
= min (1.1 / [1 * {1.1 / 0.975 - 1} + 1], 1.1 / [0.002 * sqrt(10,000) * 1 + 1] )
= min (0.975, 0.9167)
= 0.9167
Assuming BTC is trading at $20,000, the value of your collateral would be 0.9167 * 10,000 * $20,000 = $183,333,333.
Additionally, collateral contribution can also change depending on the asset's IMF Weight and/or IMF Factor (as illustrated in the formula).
Calculating Free Collateral
Now, let’s calculate Free Collateral to understand how open positions and orders affect your collateral. Assume you have the following positions and open orders in your account:
Market |
Position Size |
Mark Price |
Position Notional |
IMF % |
MMF |
Collateral Used |
SOL-PERP (Long) |
1,000 |
$40 |
$40,000 |
10% |
3% |
$4,000 |
LTC/USD (spot margin short) |
100 |
$50 |
$5,000 |
16% |
6% |
$789 |
USDT-PERP (Open Long) |
10,000 |
$1 |
$10,000 |
10% |
3% |
$1,000 |
FTT/USD (Open Buy) |
1,000 |
$30 |
$30,000 |
- |
- |
$30,000 |
Total (sum) |
- |
- |
$85,000 |
- |
- |
$35,789 |
Note: “Open” in this context means that the order has not been filled yet.
Total Collateral Used is calculated by multiplying the Position Open Size Notional times its IMF. For open spot orders, the Collateral Used will be the full notional size of the order. When we add all of this up, the Total Collateral Used comes out to $35,789.
Before we calculate Free Collateral, keep in mind that the LTC/USD spot margin short position creates a negative LTC spot balance. In addition to requiring margin, negative spot positions also decrease your account collateral value.
In other words, our LTC/USD spot margin short is using $789 in Collateral, and on top of that, you will have an LTC balance of -$5,000. At the same time, your USD balance will increase by $5,000 as well.
To illustrate this, here’s an updated overview of the Total Account Collateral:
Total Account Collateral |
||||||||
Asset |
Size |
Mark Price |
Notional USD |
Initial Weight |
Total Weight |
IMF Factor |
Contribution |
Total Collateral |
USD |
105,000 |
$1 |
$105,000 |
1 |
1 |
- |
1 |
$105,000 |
BTC |
2.5 |
$20,000 |
$50,000 |
0.95 |
0.975 |
0.002 |
0.975 |
$48,750 |
ETH |
10 |
$1,500 |
$15,000 |
0.9 |
0.95 |
0.0004 |
0.95 |
$14,250 |
LTC |
-100 |
$50 |
-$5,000 |
- |
- |
- |
NA |
-$5,000 |
Total Collateral |
- |
- |
$165,000 |
- |
- |
- |
- |
$163,000 |
Now, to calculate Free Collateral, we simply need to subtract Total Account Collateral - Total Collateral Used:
Total Collateral |
$163,000 |
Total Collateral Used |
$35,789 |
Free Collateral |
$127,211 |
In conclusion, you have $127,211 in Free Collateral, which can be used to open new positions, transferred, or lent.
Handling Negative USD Balances
Selling your non-USD collateral
Note: IF YOU DO NOT WANT YOUR ASSETS TO BE CONVERTED TO COVER NEGATIVE USD BALANCES, PLEASE SKIP TO THE NEXT SECTION
For accounts with spot-margin trading disabled, FTX will automatically send market orders to convert the non-USD collateral into USD if the USD balance is negative and any of the following conditions hold:
- You are close to liquidation: your account's margin fraction is less than 20bps + maintenance margin fraction requirement
- Your negative USD balance is over $30,000 in magnitude
- Your negative USD balance is over 4 times larger than your net account collateral
FTX will prioritize conversion to USD based on the collateral quality of the asset as measured by the Total Weight. For the assets that carry the same Total Weight, the asset with the higher notional USD value will be converted first. Note that FTT collateral is always used last.
For example, if both BTC and USDT are eligible choices, FTX will choose the larger balance in USD terms. As an illustration, if you have $1000 of USDT and $100 of BTC, the USDT will be traded into USD first.
Note that collateral conversions will potentially top you up so that you have slightly more than zero USD left by converting 10% more than is necessary in case of price movements.
Charging interest instead of collateral converting
Instead of having your collateral converted into USD, you can enable spot margin trading on your account in order to automatically borrow the negative USD balance via the spot margin market and pay the prevailing USD borrow rate. To enable spot margin trading, go to the Margin section on your profile page and click "Enable spot margin trading".
As an example, assume you opened a long futures position and only had BTC as collateral. If your position goes against you, you would have a negative USD balance. At that point, instead of converting your BTC collateral, FTX will use the BTC as collateral to borrow USD from the spot margin market for the amount you’re negative. You will be charged the prevailing USD borrow rate for any negative USD balance.
How can your USD balance go negative?
Assume you have 110,000 USDT in your account and nothing else and USDT is trading at $1. Let’s say BTC-PERP trading at $20,000 and you open a 50 BTC-PERP long position, making the total position notional equal $1,000,000.
A few minutes later, the price of BTC-PERP goes down. What happens? Remember that :
- Your USD balance is $0 (because you used USDT as collateral to open your position)
- Unrealized PnL affects your USD balance in real time:
- Unrealized PnL from open futures positions is settled in USD every ~30 seconds. This means that debits or credits are happening on your account as your positions change in value, which ultimately affects your USD balance and collateral. Traders that have a positive PNL can withdraw it, use it to buy spot, lend it out, use it as collateral, etc. as soon as it’s been credited to their account. Trading fees and funding payments also affect your PnL. Also, keep in mind that PnL isn’t realized on spot trades, only derivatives.
-
To calculate your PnL on open positions:
- if you bought = position size * (mark price - entry price)
- if you sold = position size * (entry price - mark price)
So when the price of BTC-PERP goes down, you start accruing a negative USD balance.
To illustrate this, say BTC-PERP is now trading at $19,600 and USDT is still trading at $1:
= position size * (mark price - entry price)
= 50 * ($19,600 - $20,000) = -$20,000
So, your new account balance would be:
- USD = –$20,000
- USDT = 110,000 USDT