Huobi Invites Market Makers and Key Clients to Join Beta Test of New Margin Services
- Spot Trading Guide
Huobi has launched new margin services, and we invite market makers and key clients to join the beta test.
About Huobi's New Margin Services
To better protect user assets and improve margin trading experience, Huobi has updated the rules for margins, including introducing a new risk rate formula, adopting a new tiered margin policy, and applying initial and maintenance margins in opening and liquidation verification. The update will make the margin weights of coins more in line with their liquidity and user positions, offering greater margin weights for smaller positions and assets with better liquidity, as well as allowing users to trade more crypto assets in margined products.
Calculation for New Margin Value
Tiered margin weight is set based on the liquidity and open positions of different tokens to minimize the potential slippage losses in closing positions. Please refer to the Huobi website for specific discount rates.
Account Risk and Risk Management
Huobi monitors the risk of user accounts at any time and conducts risk control according to users' risk levels. Please refer to the following formula for information related to account risk and risk control.
● For a specific coin: Maintenance Margin = Net Debt * Maintenance Margin Ratio * Price in USDT
● Account Risk Rate = (Total Margin Value - Total Net Debt Value) / Total Maintenance Margin
Huobi has set risk criteria for users. See the following for the available operations under different risk rates:
● When the account risk rate is < 150%, withdrawal is not available. This indicator is applicable before and after a withdrawal.
● When the account risk rate is < 105%, the system will force liquidation automatically, during which no account operation is available. The margin in the account will be used for liquidation as well as for repaying interest and arrears. When the margin value is below zero, Huobi will mark the account as negative equity and reserves the right to claim the debt from the user.
Calculation for Maintenance and Initial Margins
Maintenance margin is used for liquidation verification:
Maintenance Margin = Net Debt * Maintenance Margin Ratio
Like the maintenance margin, the initial margin is used to verify that a user is eligible to open a position. A user's eligibility for opening a position is calculated as follows:
(Total Margin Value - Total Net Debt Value) > Initial Margin
Initial Margin = Initial Margin Ratio * Net Debt
How to join the beta test of new margin services?
There are two methods
1. Fill out the form with your UID Fill out the form with your UID to take part in the beta test for the new margin trading feature and enjoy interest-free loans.
2. Contact your account manager or our 24/7 online customer service
Market makers and key clients who apply to join the beta test
The event lasts from March 7 to 21, 2023.
Event 1: Participants can enjoy interest-free loans for margin trades during the event period.
Event 2: Upon completing the beta testing, users who participate in this event will be granted a trial upgrade up to Prime 11.
Prime 11 trial period: From March 22, 2023, to Apr 21, 2023.
Event 3: Please fill out this form if you find any bug during use, and we will fix it as quickly as possible. For each suggestion, you will get a Margin Interest Voucher worth 10 USDT.
How to use a Margin Interest Voucher?
- The Margin Interest Voucher rewarded from this event will expire in 48 hours upon receipt.
- Valid Margin Interest Vouchers can be used to deduct the loan interest. A single valid voucher can be used for multiple loan orders at the same time.
- Reward distribution: Margin Interest Vouchers will be credited to users' accounts within 7 working days after the event ends. Users can view them in Rewards Hub - My Rewards - Coupon.
Terms & Conditions:
- Participants are advised to trade with small amounts during the event.
- The event only applies to market makers trading on margin and key clients.
- The rewards will be credited to your account within 7 working days after the event ends. If you haven't received your rewards by then, please contact our 24/7 online customer service or email [email protected] for assistance.
- Huobi will strictly review and disqualify any participants who show any signs of fraudulent behaviors, such as malicious inflation of trading volume, bulk registration of fake accounts, wash trading, and order matching.
February 1, 2023
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Huobi reserves the right in its sole discretion to amend or change or cancel this announcement at any time and for any reasons without prior notice. The above is for information purposes only and Huobi makes no recommendations or guarantees in respect of any virtual asset, product, or promotion on Huobi. Prices of virtual assets are highly volatile and trading virtual assets involves risk. Please read our Risk Reminder text here.