Understanding Margin Ratios and Auto-Borrow/Repay
Master margin ratio calculations, configure auto-borrow for seamless trading, and set up auto-repay to manage costs.
The margin ratio compares what you owe against what you have posted, and it is the number that decides whether a position survives. Auto-borrow and auto-repay automate the edges of that — convenient, and worth understanding before enabling, because automation borrows on your behalf without asking again.
Before you start
- An open margin position or a plan to open one.
- A ratio level at which you will act, decided in advance.
What Is the Margin Ratio
The margin ratio is calculated as (Total Asset Value / Total Borrowed + Interest) expressed as a percentage. A ratio of 200% means your assets are worth twice your obligations. Midas requires a minimum maintenance ratio (typically around 110-120%) to avoid liquidation.
Monitor Your Risk Level
Navigate to Margin Account > Dashboard to see your current margin ratio, risk level indicator (Safe, Warning, Danger), and a projection of how much the market would need to move against you before reaching liquidation. The dashboard also shows a breakdown of all collateral assets and outstanding loans.
Enable Auto-Borrow
Go to Margin Account > Settings and toggle on Auto-Borrow. When enabled, the system automatically borrows the necessary amount when you place a margin order that exceeds your available balance. This allows seamless trading without manually borrowing before each trade.
Enable Auto-Repay
Toggle on Auto-Repay in the same settings panel. When enabled, incoming funds (from selling assets or receiving transfers) are automatically used to repay outstanding loans. This helps minimize interest costs and keeps your margin ratio healthier.
Best Practices for Margin Management
Keep your margin ratio well above the minimum by not over-borrowing. Monitor your ratio after placing trades and during periods of high volatility. Margin alerts are sent automatically as your ratio falls towards danger levels, so there is nothing to set up. Consider using isolated margin for individual risky trades.
If something goes wrong
- A loan appeared that you did not request.
- Auto-borrow filled a shortfall to complete an order. That is its purpose; turn it off if you would rather the order failed instead.
- The ratio moves even when you do not trade.
- Collateral prices move and interest accrues. Both change the ratio continuously.
- Auto-repay took a balance you were about to trade with.
- It clears debt whenever balance becomes available, which is its purpose. Turn it off if you would rather choose the timing yourself.
Frequently asked questions
- What ratio is safe?
- Further from the liquidation threshold than one day's ordinary volatility on your collateral. There is no universal number.
- Should I enable auto-repay?
- It reduces interest by clearing debt as balance becomes available, and it has fewer surprises than auto-borrow.
- Where do I see the ratio?
- On the margin account summary and beside each position, with the liquidation level shown alongside.
- Can I set an alert on the ratio?
- You do not need to. Midas sends margin alerts automatically as the ratio deteriorates, at thresholds it sets for you: in the app, and by push if the mobile app is allowed to notify you.
- Does the ratio account for unrealised profit?
- Yes — which is why it moves continuously with the market and why a ratio checked yesterday is not the ratio today.