What are the benefits of using Wealth assets as Futures margin?
1. Using one token for two functions, enhancing your returns. By using Wealth assets as margin, you can accrue interests continually while using them in Futures trading to pursue greater profits!
2. You can also use it to replenish your Futures margin to reduce trading risks. Using your Wealth assets as a new source for your Perpetual Futures margin can help reinforce the security of your positions.
Can the Wealth assets used as margin keep generating interest?
The Wealth assets used as margin can keep generating interest as long as there is no forced liquidation. If liquidation occurs, the interest will stop accruing on the day of liquidation. For fixed-term products, interest generated will be automatically paid out to your Fund Account; for flexible-term products, interest will accrue to the Wealth Account and can be redeemed manually.
Example 1: You invest 1,000 USDT in a 30-day fixed-term Wealth product with a 5% APR on January 1st and use it as Futures margin.
If your trading has been free of forced liquidation, then when the product matures on January 30th, approximately 4.10958905 USDT of interest will be automatically redeemed to your Fund Account from the Wealth Account. The principal of 1000 USDT remains in the Perpetual Futures account.
If your 1,000 USDT is liquidated on January 10th, the system will only calculate interest generated from January 1st to 10th, which totals about 1.36986301 USDT. This amount of interest will be automatically distributed to your Fund Account after the forced liquidation.
Example 2: You invest 1,000 USDT in a flexible-term Wealth product with a 2% APR on January 1st and use it as Futures margin.
If no forced liquidation has occurred during your trading, the 1,000 USDT will have been yielding interest for 46 days (assume today is February 15th) starting from January 1st, and the total interest is around 2.52054795 USDT.
If your 1,000 USDT is liquidated on January 10th, the system will only calculate interest generated from January 1st to 10th, which totals about 0.54794521 USDT. This amount of interest accrues to your Wealth Account and can be redeemed manually to the Fund Account.
Where is the interest from Wealth assets used as margin paid out?
The interest from the Wealth assets used as margin is paid out in the same way as how a Wealth product normally pays out interest — accumulated daily in the Wealth Account and credited to the Fund Account after you redeem it.
Example: If you use Wealth assets of 1,000 USDT as Futures margin, the 1,000 USDT still accrues interest of about 0.1 USDT daily to the Wealth Account and will be returned to the Fund Account after you redeem it.
What scenarios can the margin be used for?
It can only be used in Perpetual Futures trading, including both isolated margin mode and cross margin mode. The Wealth assets used as margin cannot be transferred to other accounts.
How is the Max Amount for Margin derived?
The platform will automatically calculate the maximum margin amount available based on your subscribed Wealth products. It will prioritize using the Wealth products with the longest term as margin to provide flexibility when you choose to redeem them. The Wealth assets that are available to use as margin and individual limits are subject to the latest platform rules.
Example: Assume that you hold 1,000 USDT in a flexible-term Wealth product and 2,000 USDT in a 30-day fixed-term Wealth product. If you apply to use 2,800 USDT as Futures margin, the platform will allocate 2,000 USDT from the 30-day fixed-term Wealth product and 800 USDT from the flexible-term Wealth product for margin usage. The 2,800 USDT will be frozen and unredeemable. If you would like to redeem it, you need to return the 2,800 first to Wealth Account and it will be unfrozen after returning. The 200 USDT that have not been used as Futures margin in the flexible-term product can be redeemed at any time.
What are the interest and redemption rules for Wealth assets used as margin?
As long as there is no liquidation, the Wealth assets used as margin will continue to accrue interest. The accrued interest can be redeemed as usual. However, the Wealth assets used as margin can only be redeemed once it's returned to the Wealth account.
What happens when the fixed-term Wealth product whose assets are used as margin matures?
When the fixed-term Wealth product matures, the assets that have been used as margin will remain in your Perpetual Futures account. Its redemption won't pose any risk to the margin, and the generated interest will be automatically credited to your Fund Account.
Example: Suppose you utilize the principal of 1,000 USDT in a 30-day fixed-term Wealth product with a 6% APR as margin to trade and make a profit of 50 USDT in Perpetual Futures. After the 30-day term ends, your Perpetual Futures account holds the initial 1,000 USDT and the earned profit of 50 USDT, totaling 1,050 USDT. During the 30 days, approximately 4.93150685 USDT are generated as interest from the matured product and will automatically be paid out to your Fund Account.
Will there be interest if Wealth assets used as margin undergo liquidation during Futures trading?
If liquidation occurs, the platform will forcibly redeem the corresponding Wealth assets to cover the losses incurred. Only the interest accrued prior to the liquidation will be calculated and can be redeemed normally.
Example: Assume that you invested 1,000 USDT in a flexible-term Wealth product and 2,000 USDT in a 30-day fixed-term Wealth product. You successfully applied to use 2,800 USDT as Futures margin which unfortunately ended up being liquidated later in Perpetual Futures. In this case, you'll lose 2,000 USDT from the 30-day fixed-term Wealth product and 800 USDT from the flexible-term Wealth product. However, the interest accrued from the 2,800 USDT before the liquidation will still be paid out normally. The remaining 200 USDT from the flexible-term Wealth product not used as margin remains unaffected by the forced liquidation and continues to yield interest and is available for redemption at any time.
How do I return the Futures margin?
Visit the Wealth Account, click "Return Margin" button and enter the amount you would like to return. The system will transfer the margin from your Perpetual Futures account back to your Wealth Account. After returning, the corresponding Wealth assets can be redeemed as usual. The platform will prioritize returning the Wealth assets with the shortest maturity to provide flexibility during redemption.
Example: Assume that you invest 1,000 USDT in a flexible-term Wealth product and 2,000 USDT in a 30-day fixed-term Wealth product. If you apply to use 2,800 USDT as Futures margin, the platform will allocate 2,000 USDT from the 30-day fixed-term Wealth product and 800 USDT from the flexible-term Wealth product for margin usage.
If you request to return 700 USDT Futures margin to Wealth Account, the platform will return it to the flexible-term Wealth product first. The 700 USDT will be able to be redeemed normally once returned, while the remaining 100 USDT will still be frozen as margin and cannot be redeemed until returned.