Borrowing

Your borrowing capacity depends on your remaining available equity—the higher your available equity, the more you can borrow.

This is determined by your subaccount leverage setting, the token’s maximum borrowable leverage under different Notional Borrow Size tiers, and your net margin equity.

No manual calculation is needed—you can easily view the maximum borrowable amount for your sub-account directly under the borrow button on the lending page.

1. On the Futures or Lending page, go to the Order Placement section.

2. Next to “Cross Margin Overview”, you will see the leverage indicator. Click on it to adjust the setting.

3. This leverage setting applies as a global leverage configuration for the subaccount, affecting Lending, Futures, and Spot Margin.

⚠️Note: The selected leverage multiple represents the maximum leverage available to the subaccount. However, in practice, it is also constrained by the maximum leverage allowed for the specific token in different markets.

1. Click “Lending” to enter the Lending page.

2. Under the “Models” tab, click “Margin.”

3. Hover your mouse over the curve chart to view the leverage multiples for the selected token under different Notional Borrow Size tiers.

4. The value shown as “Max Initial Leverage” indicates the maximum multiple of the subaccount’s net equity that can be borrowed for that token.

1. The initial margin ratio has reached 100%, which means you no longer have any available equity to use as collateral for borrowing.You can borrow funds once you've either added more margin or reduced your position size, bringing the initial margin ratio below 100%.

2. When the auto-lend feature is enabled, borrowing can only occur through spot margin or withdrawals. If you wish to initiate a manual borrow,simply click the lightning icon next to the leverage multiplier to disable the auto-lend feature. Once it’s turned off, you’ll be able to proceed with the manual loan.

1. Once a position is opened, an entry fee is immediately charged. This fee is equivalent to a portion of the hourly interest.

For example, if you collateralize 1 BTC and borrow 2,000 USDC at 12:50 AM, and the next interest calculation occurs at 1:00 AM, then the 10 minutes of accrued interest will be your opening fee.

1. An hourly interest charge is applied at every hour on the hour. The hourly interest = (Borrowed Amount × Annual Interest Rate) ÷ 365 days ÷ 24 hours.

To repay your borrowed assets:

1. Go to the Lend section and switch to the Borrow tab.

2. Select the asset you wish to repay, enter the repayment amount, and confirm the transaction.

You can also enable Auto Lend, which will automatically use available balances to repay loans when possible.

Yes, you can withdraw a portion of your collateral, provided that doing so doesn’t lower your margin level below the required thresholds. If withdrawing collateral would put your account at risk of liquidation, the system will prevent the withdrawal.

Always check your margin level before attempting to withdraw.

On Backpack Exchange, your account operates on a cross-margin basis, meaning all eligible assets are used as collateral by default. There is no option to disable or opt out of using specific assets as collateral within the same account.

The only way to prevent an asset from being used as collateral is to move it to a sub-account, isolating it from your main account’s margin positions.

If the value of your collateral decreases significantly, your margin level will also drop. If it falls below the Maintenance Margin Fraction, your positions will be at risk of liquidation.

The system will automatically sell off your collateral to repay the borrowed funds.

To prevent this, monitor your margin level and add more collateral if needed.

If your Maintenance Margin Ratio reaches 100%, the liquidation engine will begin reducing your positions and selling collateral in an orderly manner to cover the borrowed amount. This helps protect both you and the platform.

Yes, you can use borrowed funds for both spot and margin trading. This feature provides extra capital to take advantage of market opportunities.

However, using leverage increases your risk, so it’s important to manage your collateral carefully and monitor your margin level to avoid liquidation.