# Unified Margin and Balances

### Collateral Assets

All Extended perpetual markets are settled in USDC (i.e., PnL is paid in USDC). In addition to USDC, Extended supports the following assets as collateral. Each asset contributes to account equity and available balance at a defined contribution factor.

| Asset                                                       | Contribution Factor to Equity | Contribution Factor to Available Balance          | Example                                                                                                               |
| ----------------------------------------------------------- | ----------------------------- | ------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------- |
| USDC                                                        | 100%                          | 100%                                              | <p>1 USDC contributes:</p><ul><li>1 USD to account equity</li><li>1 USD to available balance</li></ul>                |
| XVS ([Extended Vault Shares](/extended-resources/vault.md)) | 90%                           | 90%                                               | <p>Each 1 USD of XVS contributes:</p><ul><li>0.9 USD to account equity</li><li>0.9 USD to available balance</li></ul> |
| wBTC                                                        | 90%                           | 80% (to be increased to 90% shortly after launch) | <p>1 USD of wBTC contributes:</p><ul><li>0.9 USD to account equity</li><li>0.8 USD to available balance</li></ul>     |
| ETH                                                         | 90%                           | 80% (to be increased to 90% shortly after launch) | <p>1 USD of ETH contributes:</p><ul><li>0.9 USD to account equity</li><li>0.8 USD to available balance</li></ul>      |
| EURC *(Coming Soon)*                                        | 90%                           | 90%                                               | <p>1 USD of EURC contributes:</p><ul><li>0.9 USD to account equity</li><li>0.9 USD to available balance</li></ul>     |
| USDT *(Coming Soon)*                                        | 95%                           | 95%                                               | <p>1 USD of USDT contributes:</p><ul><li>0.95 USD to account equity</li><li>0.95 USD to available balance</li></ul>   |

Contribution factors may be reviewed and adjusted over time.

### Unified Margin Mechanics

Extended’s multi-asset collateral margin is powered by a native money market.

In practice:

* If a user has a negative USDC balance that is offset by positive balances in non-stablecoin assets (excluding XVS), the user is considered to be borrowing USDC and pays interest on that amount.
* If a negative USDC balance is offset by an XVS balance, no interest is charged. XVS represents a claim on the vault’s equity and can be converted into USDC under healthy conditions.
* Interest on negative USDC balances is charged approximately every 15 minutes.

For details on Extended’s native money market and interest payment mechanics, refer to the relevant section [here](/extended-resources/money-market.md#interest-rate-model).

### Account Balances

Every trading account has the following balances:

**Equity = USDC Balance + Spot Equity + Unrealised PnL**, where:

* USDC Balance = Deposits - Withdrawals + Realised PnL
* Spot Equity = Spot Balance 1 × Index Price 1 × Contribution Factor 1 + ... + Spot Balance N × Index Price N × Contribution Factor N
* Unrealised PnL = Perpetual Position Size × (Mark Price - Entry Price)

**Available Balance for Trading = Equity - Initial Margin Requirement**, where:

* Initial Margin Requirement for a given perpetual market = max( |Position Value + Buy Order Value|, |Position Value + Sell Order Value| ) ÷ Leverage
* Initial margin for conditional orders is not deducted until the trigger price is reached and the order is placed in the order book
* If the Available Balance for Trading falls below 0, all non reduce-only orders are canceled, and only position-reducing orders can be placed.

**Available Balance for Withdrawals = min(Asset Balance, Max Withdrawable Balance),** where:

* Asset Balance = Deposits - Withdrawals + Realised PnL
* Max Withdrawable Balance = (USDC Balance + min(0, Unrealised PnL) + Spot Equity − Initial Margin Requirements) ÷ (Contribution Factor × Asset Index Price)
* For USDC: Index Price = 1, Contribution Factor = 1

The withdrawal formula prevents withdrawing unrealised PnL and using one asset as collateral to withdraw another.


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