The MEXC cryptocurrency exchange has introduced a new multi-asset margin mode — Multi-Asset Margin Mode — to optimize trading of perpetual futures contracts. This innovation allows traders to utilize a combined margin pool from various assets, significantly enhancing capital efficiency and expanding risk management capabilities.
This is reported by Finway
Features and Benefits of Multi-Asset Margin Mode
According to the exchange’s information, the Multi-Asset Margin Mode enables users to combine supported tokens into a common collateral pool for opening futures positions. This means that popular cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) can be used as collateral without the need for conversion, helping to avoid additional costs related to spreads and fees. The system automatically accounts for profits and losses on positions, increasing account resilience to market volatility and reducing the risk of liquidation due to a single position.
Moreover, the new mechanism automatically adjusts the collateral amount: if the price of one of the assets drops sharply, funds are redistributed from the common pool, allowing traders to respond more quickly to changes in market conditions and minimize liquidation risks.
Asset Support and Collateral Ratio System
At launch, the mode supports 14 different tokens, including ETH, BTC, SOL, USDT, USDC, DOGE, and others. In the future, the exchange plans to expand this list. Currently, the feature is only available for Cross Margin in USDT and USDC margin futures.
MEXC has also implemented a multi-tiered collateral ratio system. For stablecoins USDT and USDC, the ratio is set at 100%, ensuring maximum asset utilization efficiency. For Bitcoin and Ethereum, the ratios depend on the volume: the larger the amount, the lower the ratio. For example, the first BTC has a collateral ratio of 97.5%, from 1 to 5 BTC — 97%, from 5 to 10 BTC — 96.5%, from 10 to 50 BTC — 96%, and from 50 to 100 BTC — 85%. A similar system applies to ETH and other liquid assets.
This approach prevents the dominance of large assets in the margin pool, promotes diversification and stability, while the most popular tokens remain maximally efficient for use as collateral.
“With the Multi-Asset Margin Mode, we directly respond to user needs by providing greater efficiency and security. In the face of high volatility and risks, this solution offers traders a more flexible and resilient tool for managing positions,” said MEXC’s Chief Operating Officer Tracy Jin.
Multi-Asset Margin Mode is already available to all exchange clients, and the list of supported assets is continuously expanding.