Margin Offset

What is Margin Offset?

Margin Offset allows for the reduction of total margin required for a portfolio of perpetual future positions on Coinbase International Exchange. It provides greater capital efficiency and flexibility by considering the correlation or risk offset between positions. 

How does Margin Offset work?

Margin Offset calculates the credit towards portfolio initial margin and pre-trade margin requirements for specific opposite-sided positions. The offset notional value is priced using the position volume-weighted average price (VWAP) and is updated on every mark to market, successful order entry, and fill for the associated portfolio.

Each portfolio will calculate the margin offsets based on our risk calculation.  Positions in one portfolio will not offset directly against positions in another portfolio. At the User's Business Organization (UBO) level, the offset calculation will be a notional weighted average of the portfolio-level offsets of the underlying portfolios and applied to the account level margin requirements.  

How to manage risk for closing positions with Margin Offsets

When closing positions participating in Margin Offsets, ensure the Portfolio Current Margin Notional exceeds the Portfolio Initial Margin without offsets. The margin relief due to effective offsets is the Position Offset Notional. This is critical, as the margin offset credit will be removed once the position no longer qualifies, directly affecting your margin requirements.

Additionally, if account equity falls below the initial margin but remains above the maintenance margin, users are restricted to risk-reducing trades. For positions with margin offsets, such as basis trading offsets that materially lower margin requirements, closing offsetting positions with equity at or below the initial margin can increase risk. To prevent this, users should deposit collateral to maintain equity above the initial margin before closing positions.

Example of margin offsets for perpetual futures:

Example of margin offsets across perpetual futures and spot positions:

What Positions are Eligible and What are the Offset Weights?

Please refer to the below table on the list of perpetual futures available for offset. The priority ordering in the table is the sequence in which pair-wise offsets will be calculated. 

Margin Offset Table (As of 28 February 2025)

Note: The margin offset table are based on current market conditions and are subject to change

To view the Notional Amount your Initial Margin has been offset within a portfolio please refer to position_offset_notional in the Portfolio Summary endpoint. 

How to Opt-in to Margin Offset Mode?

To enable Margin Offset mode, users can opt in on a per-portfolio basis via the API or the user interface by navigating to "Portfolio Settings" under the "Portfolios" tab.