Margin Trading

KuCoin Spot Margin Collateral Haircuts Explainations

Last updated: 10/23/2025
To determine the collateral capacity for borrowing and transfers, KuCoin has introduced the concept of “Collateral Value”. This metric is used to calculate the maximum borrowable and transferable amounts of assets under the Tiered Collateral Haircuts mechanism.
When the notional value of an asset held by a user exceeds certain tier limits, its collateral value—used for Margin borrowing and transfers—will be restricted. The actual collateral value is primarily determined by both the tier limits and the corresponding collateral ratios.
What is “Collateral Value”?
“Collateral Value” refers to the discounted value of an asset, based on its allocation across different tiers and their respective collateral ratios. The total collateral value in a cross Margin account will be calculated by summing up the discounted values of all supported assets in the user's account. The resulting value will be denominated in USDT.
It should also be noted that the collateral value determined by tier limits and collateral ratios only affects a user’s maximum borrowable and transferable amounts. It does not impact the calculation of forced liquidation or the debt ratio.
Example: How “Collateral Value” Is Calculated
  1. The user holds 260,000 ABC tokens.
  2. The tier limits and collateral ratios for token ABC are as follows:
Tier
USDT Value Range
Collateral Ratio
1
(0, 50,000]
100.00%
2
(50,000, 100,000]
80.00%
3
(100,000, 200,000]
70.00%
4
(200,000, 500,000]
50.00%
5
(500,000, 2,000,000,000]
0.00%
  1. Tier limits are denominated in USDT. Assuming the mark price of ABC is 1 ABC = 1 USDT, the notional value of the user's holding is: 260,000 ABC × 1 USDT = 260,000 USDT, which falls into Tier 4.
  2. The collateral value of the user's ABC holding is calculated as follows:
(50,000-0)*100.00%+(100,000-50,000)*80.00%+(200,000-100,000)*70.00%+(260,000-200,000)*50.00% = 50,000+40,000+70,000+30,000= 190,000 USDT
  1. Under 5x leverage, the maximum borrowable amount becomes:
Collateral Value × (Leverage - 1) = 190,000 × (5 - 1) = 760,000 USDT
  1. Summary:
  • Notional Value of ABC: 260,000 USDT
  • Collateral Value of ABC: 190,000 USDT
Frequently Asked Questions (FAQ)
  1. Does the Tiered Collateral Ratio affect my Margin account's liquidation or debt ratio?
No. The Tiered Collateral Ratio only affects the maximum borrowable amount and maximum transferable amount. It does not affect your debt ratio or forced liquidation calculations.
Debt Ratio = Total debt (USDT) / Total Assets Value (USDT)
→ Used to determine Margin account liquidation.
  • → Assets Value = Token Quantity × Index Price × Margin Coefficient
Collateral Ratio = Total Liabilities / Total Collateral Value
→ Used to calculate maximum borrowable amount and maximum transferable amount.
  • → Collateral Value = Sum of tiered values calculated as:
Collateral Value
= (Tier 1 Max - Tier 1 Min) × Tier 1 Collateral Ratio + (Tier 2 Max - Tier 2 Min) × Tier 2 Collateral Ratio + … + (Notional Value - Tier N Min) × Tier N Collateral Ratio
Tier N is the tier where the asset's notional value currently falls.
  1. Where can I view my maximum borrowable and transferable amounts?
You can view the maximum borrowable amount and maximum transferable amount via:
  • App & Web → Borrowing pages, Transfer pages
  • API → Related endpoints for Margin trading
  1. Does the Tiered Collateral Ratio apply to both Cross and Isolated Margin modes?
Yes. The tiered collateral ratio applies to both Cross Margin and Isolated Margin accounts.
  1. How are the tier limits and collateral ratios adjusted?
Due to varying liquidity levels of different assets, KuCoin may adjust the tier limits and collateral ratios dynamically based on real-time market conditions without prior notice.
You can check the latest values at: Margin Tiered Collateral Ratios
  1. Are there App version requirements?
Yes. Both iOS and Android users are required to upgrade to version 4.0.0 or above.