> For the complete documentation index, see [llms.txt](https://docs.extended.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.extended.exchange/extended-resources/trading/unified-margin-and-balances.md). # 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% |

1 USDC contributes:

| | XVS ([Extended Vault Shares](/extended-resources/vault.md)) | 90% | 90% |

Each 1 USD of XVS contributes:

| | wBTC | 90% | 80% (to be increased to 90% shortly after launch) |

1 USD of wBTC contributes:

| | ETH | 90% | 80% (to be increased to 90% shortly after launch) |

1 USD of ETH contributes:

| | USDT | 95% | 90% (to be increased to 95% shortly after launch) |

1 USD of USDT contributes:

| 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 + Net Transfers - 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 Perps = Equity - Margin Reserved for Perps - Margin Reserved for Spot Buy Orders**, where: * Margin Reserved a given perpetual market = max(|Position Value + Buy Order Value|, |Position Value + Sell Order Value|) ÷ Leverage * Margin Reserved for Spot Buy Orders = Σ(Order Size × Order Price) across all open spot buy orders * Initial margin for conditional orders on both perpetual and spot markets is not reserved until the trigger price is reached and the order is placed on the order book * If Available Balance for Trading Perps becomes negative, all non-reduce-only orders are cancelled and only position-reducing orders may be placed **Available Balance for Spot (in USDC) = Equity − Spot Equity − Margin Reserved for Perps − Margin Reserved for Spot Buy Orders**, where: * Equity, Spot Equity, Margin Reserved for Perps and Margin Reserved for Spot Buy Orders are defined above * By subtracting Spot Equity in the formula, users are prevented from engaging in leveraged spot trading. **Available Balance for Spot Sell (in Asset) = Asset Balance − Balance Reserved for Spot Sell Orders,** where: * Asset Balance = Current balance of the asset in the account * Balance Reserved for Spot Sell Orders = Σ(Order Size) across all open spot sell orders for the given asset * Reserved balances for conditional spot sell orders are not deducted until the trigger price is reached and the order is placed on the order book. **Available Balance for Withdrawals = max(0, min(Net Asset Balance, Max Withdrawal Balance)),** where: * Net Asset Balance = Deposits + Net Transfers − Withdrawals + Realised PnL (USDC only) − Balance Reserved for Spot Sell Orders * Max Withdrawal Balance = (USDC Balance + min(0, Unrealised PnL) + Spot Equity − Reserved Margin) ÷ (Contribution Factor × Asset Index Price) * Reserved Margin = Margin Reserved for Perps + Margin Reserved for Spot Buy Orders * For USDC: Index Price = 1, Contribution Factor = 1 The withdrawal formula prevents withdrawing unrealised PnL and using one asset as collateral to withdraw another. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.extended.exchange/extended-resources/trading/unified-margin-and-balances.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.