What is Unified Margin Mode?
Unified Margin Mode is a sophisticated feature on Binance that expands the types of margin available for USDⓈ-M futures contracts. It enables traders to use multiple margin assets cross-functionally within their USDⓈ-M futures trading activities.
This mode specifically allows users to share margin collateral between USDT and BUSD contracts. All margin assets within this system are valued in USD, meaning both USDT and BUSD holdings in your USDⓈ-M account can serve as combined collateral. This integration allows for trading across different margin assets, where profits and losses between USDT and BUSD positions can offset each other, ultimately leading to significantly improved capital efficiency.
It is crucial to note that this functionality currently operates exclusively in Cross Margin mode. You cannot enable or disable Unified Margin if you have open positions or existing orders.
For traders who prefer to use a single type of collateral for their transactions, the Single-Asset Margin mode remains available. This single-asset mode supports both Cross Margin and Isolated Margin strategies.
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How to Switch Between Single-Asset and Unified Margin Modes
Navigating the margin mode settings on Binance is a straightforward process.
- On the Binance USDⓈ-M Futures trading interface, locate and click on the "Preferences" or settings icon, typically found in the top-right corner of the screen.
- Within the menu that appears, select "Margin Mode."
- You will be presented with two options: "Single-Asset Margin Mode" and "Unified Margin Mode."
The platform defaults to "Single-Asset Margin Mode," meaning you can only use a specific asset (like USDT) as collateral for its corresponding contract (like a USDT-matured contract).
A critical automated feature within Unified Margin is the auto-conversion mechanism. If your balance in one margin asset falls below the system's required threshold, Binance will automatically convert other assets from your USDⓈ-M account into the needed collateral. It is essential to review the official auto-conversion rules to understand this process fully.
Important Pre-Switch Checks:
- You cannot change your account mode if you have any open positions or active orders in your USDⓈ-M Futures account. Any mode adjustment applies to all USDⓈ-M contracts universally.
- If you are running a Grid Trading bot, you will be unable to enable Unified Margin and will receive a pop-up notification stating this.
- If any of your USDⓈ-M contracts are in Isolated Margin mode, a pop-up will list these contracts and provide a quick switch button. You must manually switch all contracts to Cross Margin mode before activating Unified Margin.
While Unified Margin dramatically enhances capital utilization, it also proportionally amplifies your trading risk. Binance provides a guidance pop-up during activation—carefully read and understand these warnings before proceeding.
How to Check Your Current Margin Mode
Once you have successfully activated Unified Margin, confirming your status is simple. On the margin risk ratio display, typically located in the top-right section of the trading interface, a clear label will indicate "Unified Margin," signifying the mode is active.
In this mode, your entire margin balance is shared across all open positions. This makes it imperative to monitor your Margin Ratio closely to avoid liquidation. If your account's Margin Ratio reaches 100%, all positions within the Unified Margin account will be liquidated.
The formula for calculating your Margin Ratio in Unified Margin Mode is:
Account Margin Ratio = Account Maintenance Margin / Account Equity
- Account Maintenance Margin: The sum of the maintenance margin requirements for all Cross Margin positions in your USDⓈ-M account, valued in USD.
- Account Equity: The total value of all margin assets in your USDⓈ-M account, valued in USD.
How to View Your Asset Balances
Monitoring your assets is key to effective risk management. On the trading interface, next to the "Funds" or "Balance" section, you will find an "Assets" tab. This tab provides a comprehensive overview, listing all assets eligible for use as Unified Margin collateral. It displays each asset's:
- Total Balance
- Unrealized PnL
- Available Balance (for new orders)
- Margin Usage Rate
Calculating Margin Ratio in Unified Margin Mode: A Practical Example
Understanding the calculation is easier with an example. Assume the following market prices and conversion rates for USDT and BUSD:
| Trading Pair | Asset Price | Bid Markdown Premium | Ask Markup Premium | Bid Rate | Ask Rate |
|---|---|---|---|---|---|
| USDT/USD | 0.99 | 0.01 | 0.005 | 0.9801 | 0.99495 |
| BUSD/USD | 1 | 0 | 0 | 1 | 1 |
A trader holds 200 USDT and 220 BUSD and opens two positions:
- A 100x leveraged long position on BTCUSDT perpetual (0.5 qty, entry at 20,000 USDT).
- A 50x leveraged long position on ETHBUSD quarterly (20 qty, entry at 600 BUSD).
The maintenance margin rates are 0.8% and 1.0%, respectively.
Scenario 1: No Open Positions
- Account Equity: (200 USDT 0.9801) + (220 BUSD 1) = 416.02 USD
- Available for Orders: 416.02 USD
- Maintenance Margin: 0 USD
- Margin Ratio: 0%
Scenario 2: Positions Open, No Unrealized PnL (Mark Price = Entry Price)
- Maintenance Margin: (0.5 20,000 0.008 0.99495) + (20 600 0.01 1) = 199.596 USD
- Account Equity: 416.02 USD (wallet balance, as PnL is zero)
- Margin Ratio: 199.596 / 416.02 ≈ 47.98%
Scenario 3: Positions Open, With Unrealized PnL (Mark Price: BTC=19,000, ETH=620)
- Unrealized PnL: BTC: -500 USDT; ETH: +400 BUSD
- Asset Equity: USDT: 200 - 500 = -300; BUSD: 220 + 400 = 620
- Account Equity: (-300 0.99495) + (620 1) = 321.515 USD
- Maintenance Margin: (0.5 19,000 0.008 0.99495) + (20 620 0.01 1) = 199.61 USD
- Margin Ratio: 199.61 / 321.515 ≈ 62.08%
This example shows how falling prices on a highly leveraged position can rapidly consume equity and increase the margin ratio, even if another position is profitable.
Understanding the Auto-Conversion Mechanism
The Unified Margin system includes a vital auto-conversion feature to help manage collateral requirements. If the balance of one margin asset falls below a predefined threshold, the system will periodically convert a portion of your other USDⓈ-M wallet assets into the deficient asset. This process is automated and handled by the exchange's matching engine at fixed intervals.
The system calculates the deficit and uses the surplus from other assets to perform the conversion, ensuring your margin requirements are continuously met without requiring manual intervention from the trader.
Calculating Maximum Withdrawable Amount
The calculation for the maximum amount you can withdraw depends on your margin status.
- No Margin Used: If you have no margin allocated to positions (∑(assetCrossInitialMargin * askRate) = 0), the calculation is simpler, based on your total wallet balance minus any obligations like maintenance margin, initial margin for orders, borrowed funds, and vouchers.
Unified Margin Active: Once margin is in use, the calculation becomes more complex to account for shared collateral. The system determines a virtual maximum withdrawable amount in USD, considering:
- Your wallet balance minus the total maintenance margin and borrowed amounts.
- Your available balance for orders minus borrowed amounts.
- Your wallet balance minus maintenance margin, borrowed amounts, vouchers, and any negative realized PnL.
This USD value is then converted back into the specific margin asset's quantity using the prevailing exchange rate, and the final amount is the smaller of this calculated figure and the asset's actual available wallet balance.
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Frequently Asked Questions
What is the main advantage of using Unified Margin Mode?
The primary benefit is significantly enhanced capital efficiency. By allowing USDT and BUSD balances to be combined and for profits in one position to offset losses in another, traders can free up more capital for new positions without needing to add additional funds to their account.
Can I use Isolated Margin with Unified Margin?
No, Unified Margin Mode requires all positions in your USDⓈ-M Futures account to be in Cross Margin mode. If you have any contracts using Isolated Margin, you must manually switch them to Cross Margin before you can enable Unified Margin.
Does enabling Unified Margin increase my risk?
Yes, it amplifies risk alongside potential returns. Because your entire collateral pool backs all positions, a significant loss on one trade can impact the margin supporting your other positions, increasing the risk of liquidation across your entire portfolio. Always monitor your overall Margin Ratio closely.
How often does the auto-conversion happen?
The auto-conversion process is performed by the system at regular, fixed intervals. The exact frequency is determined by the exchange's internal engine to ensure stability and is not publicly specified. It is not triggered instantly upon a deficit but rather in periodic batches.
Why can't I change my margin mode?
You cannot switch between Single-Asset and Unified Margin modes if you have any open positions, active orders, or running trading bots (like Grid Trading). The system requires a "flat" state with no active trading obligations to change this fundamental account setting.
Where can I see my real-time Margin Ratio?
Your Account Margin Ratio is displayed prominently on the USDⓈ-M Futures trading interface, usually in the top-right corner near your balance information. This is the most critical metric to watch when using Unified Margin.