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.
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. Set up notification alerts for margin ratio thresholds so you are warned before reaching danger levels. Consider using isolated margin for individual risky trades.