Backpack Exchange uses a cross-margin system by default which means that all eligible assets in your account are automatically used as collateral. Our margin markets enable you to Borrow assets by providing collateral which allows you to trade larger positions than your capital alone would permit, all without selling your assets.
There are three methods for utilizing Borrow on Backpack:
- Spot Margin (Spot dashboard)
- Manual Borrow (Lend dashboard)
- Margin Withdrawal (Withdrawal menu)
Spot Margin (Spot Dashboard)
1) Navigate to the Spot dashboard.
2) Tick the Margin box in the order form (below the Buy button) to access Borrowed funds for your trades.
3) View available equity and margin. Place your Spot Margin order.
Manual Borrow (Lend dashboard)
1) Navigate to the Lend dashboard and open the Borrow tab to initiate a manual Borrow.
Auto Lend must be disabled for this functionality. The option is located in the Margin Overview menu.
2) Assess the position details in Account Overview.
- Initial Margin is the minimum amount of collateral that a trader must deposit to open a leveraged position.
- This acts as a safety buffer for the lender (and Exchange) ensuring that the borrower has enough capital at stake to cover potential losses.
- This acts as a safety buffer for the lender (and Exchange) ensuring that the borrower has enough capital at stake to cover potential losses.
- Maintenance Margin is the minimum amount of equity (or collateral) that a borrower must maintain in their account to avoid liquidation.
- If the value of the borrower’s assets falls below this threshold, the Exchange can liquidate part or all of the position to recover the borrowed assets and minimize the risk of a bad loan.
- This acts as a safeguard for lenders.
- If the value of the borrower’s assets falls below this threshold, the Exchange can liquidate part or all of the position to recover the borrowed assets and minimize the risk of a bad loan.
3) Choose the Max Account Leverage.
4) Enter the amount of USDC you want to borrow from a Lending pool.
- The Available to borrow amount is calculated with all the assets in your balance that are eligible for collateral, as well as all the open positions and unrealized PnL.
5) Select the Borrow button to transfer funds to your Portfolio.
- Instantly view the updated available funds in both Portfolio and trade menus.
Margin Withdrawal (Withdrawal menu)
You can Borrow against collateral in order to withdrawal assets to your wallet.
1) Open the Withdrawal menu. Tick the Margin box at the bottom of the menu.
2) Select the crypto you wish to Borrow and view margin details.
3) Press the Continue button to initiate Withdrawal process.
Do you have questions or require further information?
Click the red Live Chat button in the lower right of your screen or contact us via email at: support@backpack.exchange
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