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collateralratio

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The crypto market is becoming a collateral market: why it’s now important to look not just at the asset price?Let’s imagine a simple situation. You have an asset worth: $10 000. Its price per day didn’t change. The portfolio was still $10 000 and remained $10 000. But Binance changes its collateral ratio from 60% to 30%. And suddenly, for the margin system, your $10 000 — is no longer $6 000 in collateral. Only: $3 000. You didn’t lose a single dollar as the price moved.

The crypto market is becoming a collateral market: why it’s now important to look not just at the asset price?

Let’s imagine a simple situation.
You have an asset worth:
$10 000.
Its price per day didn’t change.
The portfolio was still $10 000 and remained $10 000.
But Binance changes its collateral ratio from 60% to 30%.
And suddenly, for the margin system, your $10 000 — is no longer $6 000 in collateral.
Only:
$3 000.
You didn’t lose a single dollar as the price moved.
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