With multi-asset collateral, customers who have onboarded to trade perpetual futures can collateralize positions using BTC or ETH (in addition to USDC).
To get started, fund your International Exchange (INTX) portfolio with BTC or ETH from your default portfolio.
Collateral weight & collateral value
Collateral weight is the multiplier that determines how much the notional value of a portfolio’s asset holdings contributes to the portfolio’s collateral. For example, if an asset’s collateral weight is 90%, the notional value of the asset is only counted as collateral at a rate of 90%.
Notional Value = $2,000, Collateral Weight = 90%, Collateral Value = $2,000 * 90% = $1,800.
Collateral limits
The Coinbase International Exchange imposes the following limits to reduce risk:
Account-level limits control the amount of collateral an individual trader can use as collateral for a specific currency.
Ecosystem-level limits control the total amount of collateral the exchange will accept for a specific currency.
If limits are exceeded:
All collateral balances below the limit(s) will still count as collateral.
You’ll be alerted that you have collateral balances over the limit(s).
Order fees, funding fees, & PnL settlement
Coinbase collects fees for orders and funding, and also settles unrealized profit and loss (PnL) on open positions. All settlements are made in USDC.
If you’re only using non-USDC currencies as collateral, we’ll liquidate enough of these currencies to cover order and funding fees and/or settlements. To avoid this, please monitor your portfolio regularly and ensure you're holding sufficient USDC in your portfolio to cover upcoming charges.
Liquidations
If your account's current margin falls below your maintenance margin, or your liquidation buffer is 0%, your position will be liquidated.
To de-risk your account, we liquidate your perpetual futures positions at the same time as crypto collateral liquidations. We liquidate crypto collateral using a randomized factor.
Once you deposit acceptable collateral into your portfolio, we automatically enable your portfolio for Cross Collateral.
Isolated margin
Non-USDC currencies can’t be used to open isolated margin positions at the moment. Only cross-margin positions can be collateralized using an accepted non-USDC currency.