How to Calculate Borrowing Limit After Binance Margin Collateral Discount
Binance margin account's borrowing limit equals your "Collateral Value" divided by the "Initial Margin Rate" of the borrowed coin. "Collateral Value" is the amount of your deposited assets after applying the "Collateral Ratio" (i.e., the haircut).
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In simple terms: the assets you deposit as collateral are first discounted, then the discounted value is used to calculate how much you can borrow.
1. Distinguish Two Key Concepts
Collateral Ratio: The percentage of your asset that is recognized as collateral. For example, if BTC has a collateral ratio of 95%, depositing 1 BTC (worth $100,000) means the system counts only $95,000 as collateral value. This "haircut" is what you refer to as the "discount".
Initial Margin Rate: The proportion of collateral you must lock up when borrowing a specific coin. For instance, if the initial margin rate for borrowing BTC is 5.27%, to borrow $100,000 worth of BTC, you need to lock up $5,270 in collateral value.
Borrowing Limit = Collateral Value / Initial Margin Rate
Source: Binance Developer Documentation, 2026-07-23
2. How to Check Collateral Ratios for Different Asset Types
Case A: Cross Margin Account
What to do: Check the collateral ratio for the assets you hold in cross margin.
How to do it:
Visit the "Margin Data" page on the Binance website.
Find the "Cross Margin Collateral Ratio" table and look up the collateral ratio by asset and position size.
The collateral ratio is usually tiered—the larger your position, the lower the collateral ratio for the excess portion. For example, for BTC/USDT the collateral ratio might be: 100% for the 0–1,000,000 USDT portion, 97.5% for the 1,000,000–2,000,000 portion, and so on.
Completion criteria: Confirm the collateral ratio for the asset you want to pledge at your current position size.
Different assets have different collateral ratios. Major coins (BTC, ETH, USDT) tend to have higher collateral ratios, while smaller altcoins may be as low as 60% or even lower.
Case B: Unified Account (Portfolio Margin)
What to do: Check the collateral haircut rules under your unified account.
How to do it:
Refer to the "Unified Account Collateral Ratio" table.
The collateral ratio for a unified account is also calculated in tiers based on asset and position size.
Completion criteria: Confirm the collateral ratio for each asset under the current unified account mode.
Case C: Isolated Margin
What to do: Confirm whether isolated margin is affected by collateral ratios.
How to do it: Isolated margin is NOT subject to the collateral haircut.
Completion criteria: In isolated mode, your borrowing limit is calculated directly at the full value of the asset, with no "discount" applied.
3. Complete Steps to Calculate Borrowing Limit
Calculate Collateral Value:
Collateral Value = Σ (Asset Quantity × Mark Price × Applicable Collateral Ratio) + 100% of positive net position liabilities – 100% of negative net position liabilities
Positive net positions use the lowest mark price; negative net positions use the highest mark price.
Look up the Initial Margin Rate of the borrowed coin:
On the Margin Data page, find the initial margin rate for the coin you want to borrow. This rate is often tiered as well—the more you borrow, the higher the initial margin rate for the excess portion.
Calculate the maximum borrowable amount:
Borrowable Quantity = Available Collateral Value / Initial Margin Rate
If the borrowing amount spans multiple tiers, you need to calculate each tier separately.
Prerequisites
You have deposited assets in your cross margin or unified account.
You have completed identity verification (KYC).
Common Reasons for Failure
Not accounting for "open order loss" that reduces your borrowing limit: If you have unfilled orders in your cross margin account, the system calculates an "Open Order Loss". For example, a limit order to buy an asset with a lower collateral ratio may cause your available collateral value to drop, which in turn reduces your borrowing limit.
Ignoring the tiered collateral ratio mechanism: Many users assume all assets are valued at a single fixed percentage. In reality, the collateral ratio is tiered—the larger your position, the lower the collateral ratio for the excess portion. This can make your actual borrowing limit lower than expected.
Checking collateral ratios under a non-cross margin mode: Isolated margin does not follow collateral ratio rules. If you look at collateral ratios while in isolated margin mode, you will get a wrong understanding.
Risk Warning
Liquidation risk: The collateral haircut directly affects your "Collateral Margin Level". This level determines your maximum borrow amount and maximum transfer-out amount. If collateral value drops due to the haircut or price declines, your account may be liquidated earlier.
Asset price fluctuation risk: The system uses mark prices to calculate collateral value. If the price of your collateral asset falls, your collateral value decreases accordingly, which may shrink your borrowing limit or even trigger a margin call.
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FAQ
Q: Are the collateral ratios for major coins like BTC and ETH always 100%? A: Not exactly. For small BTC positions the collateral ratio may be 100%, but once a certain threshold is exceeded (e.g., above 1,000,000 USDT), the excess portion may drop to 97.5%. Always check the exact values on the Margin Data page.
Q: Is the collateral ratio fixed? A: No. Binance may adjust collateral ratios at any time. Please check the Margin Data page regularly for the latest parameters.
Final verification step:
Open Binance's Margin Data page, find the "Collateral Ratio" for the asset you hold and the "Initial Margin Rate" for the coin you want to borrow. Plug your account's asset quantities into the formula and check whether the borrowing limit displayed by the system matches your calculation. If there is a discrepancy, check whether any open order loss is affecting your available collateral value.
