By default, collateral is posted in USD and pnl is paid out in USD.
Balances of the following coins also count towards collateral, at 0.95 times their latest index prices:
In the event that your USD balance falls too far below zero (see below for details), some of your balances in the above coins may be automatically converted to USD, at 0.995 times the latest index price.
Any positive PnL will be paid out in USD regardless of which type of collateral you use.
FTX will convert your non-USD collateral into USD if your USD balance is negative and any of the following hold:
- You are close to liquidation: your account's margin fraction is less than (20bps + maintenance margin fraction requirement)
- Your negative USD balance is large: over $10,000 in magnitude
- Your negative USD balance is large when compared to overall collateral: its magnitude is over 3 times larger than your net account collateral
- All FTX users collectively have over $2,000,000 in negative USD
FTX will convert your balances into USD in ascending order of their dollar value: if you have $100 of BTC and $1000 of USDT, your BTC will be converted into USD first. FTT collateral is always converted last.