Bybit, one of the leading cryptocurrency exchanges in the world, announced the launch of its unified margin account on Monday, July 25th. According to the crypto exchange, the unified margin account is available to eligible users, with a full release to be expected in the near future.
In a press release issued on Monday, Bybit said its unified margin account offers a completely new derivatives trading structure. The users can use all assets under their account as collateral to trade USDT perpetual, USDC perpetual, and USDC options contracts.
Bybit added that at the moment, the the unified margin account supports USDT, USDC, BTC and ETH. However, more assets will be supported after the full release, Bybit added.
Ben Zhou, co-founder and CEO of Bybit, commented that;
“Our new unified margin account affords Bybit users another powerful trading tool to enhance their trading experience and effectively manage portfolio risks,” said “Our trading system allows our users to enjoy maximum profitability even in times of price fluctuations and unexpected market movements with Bybit’s significant market depth and best-in-class liquidity. We are thrilled to add this new feature, which is one of the best capital efficiency features on the market. We are continually listening to feedback from our 6 million-strong user base, and this feature is another example of our pledge to continually improve our offerings.”
The cryptocurrency exchange added that under the unified margin account, the overall risks and assets would be calculated in USD terms. Furthermore, as long as the total maintenance margin (calculated as USD equivalent) under the account meets the requirement, the trader’s positions will remain open.
With the unified margin account, traders have the option to trade USDT perpetual, USDC perpetual, and USDC options contracts simultaneously without transferring assets back and forth across multiple accounts.
The USDT, USDC, BTC and ETH balances of the traders under the unified margin account will also be calculated as USD equivalent, depending on their respective conversion ratios. The assets will then be used collectively as their position margin.
According to Bybit, the profit and loss of all stablecoin (USDT and USDC) perpetual contract positions under the unified margin account will be accumulated and offset against each other.
This implies that the loss recorded by one position would not necessarily trigger liquidation as long as the overall portfolio risk remains below the critical level.
The unified margin account also comes with the auto-borrowing feature. Bybit explained that if the available balance of an asset under the unified margin account falls below zero due to trades and/or market fluctuations, the system will process auto borrowing of the asset.
With this feature, no interest will be incurred if the amount to borrow falls within the interest-free range of the asset.
The Bybit team added that following the full release, its users could manually upgrade to the unified margin account via OpenAPI and the PC trading site.
Bybit is a cryptocurrency exchange established in March 2018 that offers a professional platform where crypto traders can find an ultra-fast matching engine, excellent customer service and multilingual community support.
The low Bybit fees make it one of the fastest-growing cryptocurrency exchanges at the moment. Furthermore, Bybit reviews have generally been positive, as the exchange has provided traders with the necessary tools to trade successfully.