Total Assets: The total sum of tokens in your Leverage Account, including available balance and balance blocked.
Transferred Assets: The amount of tokens transferred from other accounts to your Leverage Account.
Loaned Assets: Total Loaned amount of tokens by using your available asset in Leverage Account as margin.
Available Assets: The total amount of tokens available for trading in Leverage Account.
Assets Blocked: The amount of tokens which is unavailable for placing orders.
Loaning limit: Maximum quantity of token available to loan of the corresponding token pairs. There is 3 times current maximum amount.
Maximum leverage formula: Max leverage = (Total assets - outstanding loan - interest payable) * (max leverage multiplier - 1) - outstanding loan
Risk ratio and Forced liquidation
Risk ratio: The indicator for evaluating leverage account's possibility of triggering forced liquidation. When risk ratio ≥150%, the surplus balance can be transferred out to leverage account. When risk ratio ≤130%, it indicates a high-risk status, system will notify the user automatically via SMS and E-mail. When risk ratio ≤110%, forced liquidation will be triggered and a Short Message and an E-mail will be sent to notify the user.
Risk Ratio Formula: Risk Ratio = [(Total Assets (In Base Currency) – Interests Payable (In Base Currency) ) / Last Trade Price + (Total Assets (In Trading Currency) – Interests Payable (In Trading Currency)]/(Borrowed Assets (In Base Currency) / Last Trade Price + Borrowed Assets (In Trading Currency) ) * 100%
Forced liquidation: When risk ratio ≤110%, forced liquidation will be triggered. All positions will be taken over by the platform and force closed in the market.
Liquidation Risk Ratio: 110%, Wearing Risk Ratio: 100%
Liquidation Price: A certain amount of margin is required for leverage trading in DragonEx. When unfavorable changes occur in the market, such as a reverse trend of market direction which contradicts the direction opened, the account balance may shrink below the perimeter, and system will force liquidate all holding positions at best bid /offer to pay off the debt.
Formula (Liquidation Price): Liquidation Price = (Loaned Assets (In Base Currency) * Risk Ratio + Interests Payable (In Base Currency) – Total Assets (In Base Currency) / (Total Assets (In Trading Currency) – Interests Payable (In Trading Currency) – Loaned Asset (In Trading Currency) * Liquidation Risk Ratio)
Formula (Wearing Price): Wearing Price = (Loaned Assets (In Base Currency) * Risk Ratio + Interests Payable (In Base Currency) – Total Assets (In Base Currency) / (Total Assets (In Trading Currency) – Interests Payable (In Trading Currency) – Loaned Asset (In Trading Currency) * Wearing Risk Ratio)
Interests and Repayment
About Interest: Interest would be computed and incurred per each loaning instruction. Interests would then be incurred once after the loaned order is accepted and accrued per 24-hour intervals.
About Repayment: Repayments will be used to cover the earliest loan orders, and pay off interest before principal. The repayment status will change to completed once all the debts have been paid off, then further interest will not be applied for the order.