[Overview of CROSS exchange Margin Trading]
With CROSS exchange Margin Trading, a customer makes a transaction by borrowing a cryptocurrency defined by the company and converts the cryptocurrency borrowed after a certain period of time.
Borrowing requires a deposit of a certain amount of margin balance, which is calculated when the order is placed. The margin balance deposited will be settled by deducting the borrowing fee and returning the profit and loss generated by the transaction until the transaction is settled.
Borrowing incurs a borrowing fee whether or not the transaction is closed. (Borrowing fees are incurred hourly)
Borrowing fees can be paid with XEX.
The cryptocurrency borrowed by the customer is only available for trading with CROSS exchange's Margin Trading, and cannot be used for external remittances, transfers between users, etc.
1. About Orders
Margin trading on CROSS exchange uses the same platform as normal trading. An order is placed as an order directly on the actual sales board. (Order screen: leverage buy / leverage sell)
* Minimum transaction volume: 0.001 BTC
2. About Trade Fees
Trading Fees: Trading fees for Margin Trading on CROSS exchange conforms to the rate set by the Company.
Borrowing Fees: With Margin Trading on CROSS exchange, there is a borrowing fee defined by the Company for the price when borrowing cryptocurrency. Borrowing fees are cleared at the time of transaction settlement by subtracting the borrowing fees from the margin balance deposited by the customer and returning an amount that reflects the profit or loss generated by the transaction.
List of Fees
Trading Fee / Settlement time
Borrowing Fee / Per Hour
※ Fee collection is calculated every hour. When you place a trade order, you will be charged a fee.
Hourly borrowing fee: 0.00166667%
Formula: 0.04% (daily borrowing fee) ÷ 24 hours = 0.00166667%
※ If you cancel an unfilled order within 1 hour, there is no fee.
3. About Margin Balances
With CROSS exchange Margin Trading, the required margin balance per unit of cryptocurrency to be borrowed fluctuates depending on a cryptocurrency’s trading situation, and the amount corresponding to the order volume multiplied by the leverage is required. As a rule, margin balances are kept in USDT.
4. About Leverage Ratios
You can select the multiple for each order from 2x, 4x, 6x, 8x and 10x leverage.
（The beta version starts with double the leverage）
5. About Auto Loss Cuts
With CROSS exchange Margin Trading, loss cuts are performed automatically in the following two cases:
1. 【In the case of a passed expiration date】
Unfilled orders will be canceled automatically after 30 days x 24 hours after ordering (including a free period within the first 1 hour). Positions that have already been filled are automatically settled and the profit or loss is finalized.
2. 【The margin maintenance rate decline】
When the user's margin maintenance rate falls below 30%, unfilled orders are automatically canceled if any of the conditions are met, and filled positions are automatically settled.
① We do not use the feature that "Automatically Replenishes the Margin"
(= Function to automatically replenish the missing margin from the leverage account)
② Insufficient account balance
The margin maintenance rate is calculated by the following formula:
(Initial margin balance + additional margin-transferred balance ± recognized profit/loss ± unrealized profit/loss) ➗ (Initial margin balance X returned principal amount ➗ initial principal) × 100%
6. No Additional Settlement (Additional Margin)
With CROSS exchange, you will not be required to make additional collateral claims (claims for additional settlement) when your account balance becomes negative.
7. About Adoption of the Reference Rate
Trades made through Margin Trading are traded on the same platform as the actual trading market on CROSS exchange. For the calculation of the margin maintenance rate, the concept of “base rate” is used because leveraged trading is not affected by temporary market imbalances such as bulk trading (in this case, BTC and USDT trading).
※ The base rate is the BTC/USDT rate calculated by CROSS exchange, and is a reference rate excluding abnormal prices and volumes.
※ The base rate is used only for the calculation of the margin maintenance rate (Base Rate x Position Amount). It is not used to calculate unrealized gains and losses for users.
Disclosure of risk
With CROSS exchange Margin Trading, the difference in settling positions is the profit or loss, but the principal and profit of the margin cannot be guaranteed, thus if the price fluctuates in an adverse direction (price moves down for a new buy position, price moves up for a new sell position) for the customer, the customer may incur a loss.
Margin trading involves risk due to leverage. The higher the leverage ratio, the more profit you can expect compared to the actual investment amount (including deposit margin), but there is a higher possibility of incurring an unexpected large loss.
Profits and losses are not fixed unless a settlement order is made, but loss cut rules may result in automatic settlement. Please be aware that 30% of the margin cannot always be guaranteed, as even if a loss cut is triggered, it will be affected by the market conditions at that time.
With loss cut orders, as with loss cuts, it is difficult for customers to settle their positions due to market trends and transaction volume, and the loss may increase. Please refer to the Terms of Services of CROSS exchange for the risks associated with temporary currency transactions.
※ Please refer to the Margin Trading User Manual for detailed trading methods for CROSS exchange Margin Trading.