Cryptocurrency exchange MEXC has announced the launch of a new tool – Multi-Asset Margin Mode – in order to improve user outcomes when trading futures contracts. This is according to a release provided by Incrypted.
The company cited CoinMarketCap data showing that the volume of open-ended futures trading in the crypto market reached $831.87 billion. However, despite the boom in activity, traders still face challenges: low capital efficiency and frequent liquidations, the organization said.
MEXC’s new multi-asset pooled margin mechanism significantly improves capital efficiency and trading flexibility, helping users more easily cope with high market volatility, the release emphasized.
Multi-Asset Margin Mode is a risk management mechanism that utilizes a common multi-asset margin pool. It enables users to pool supported tokens into a single collateral to open futures positions, the MEXC team explained.
The new mode from MEXC supports a wide list of tokens, offers high collateral ratios and features simplified functionality. Its benefits include higher capital efficiency, as cryptocurrencies such as bitcoin and Ethereum can be used directly as collateral without conversion to settlement currency, eliminating spread and commission losses and increasing the efficiency of free funds.
Risk protection is also enhanced: profits and losses on positions are automatically offset, increasing the account’s resistance to volatility and reducing the risk of liquidation due to a single position.
In addition, the system automatically adjusts collateral without the need to manually add margin. If the price of one asset falls sharply, funds are reallocated from the common pool, saving users time, reducing liquidation risk and allowing for faster market response.
The mode currently supports 14 tokens, including ETH, BTC, SOL, USDT, USDC and DOGE, and the list will be expanded in the future. At this stage, the feature is only available for Cross Margin in USDT- and USDC-margin futures.
Additionally, MEXC has implemented a tiered collateral ratio system to maximize asset value. USDT and USDC stablecoins have a collateral ratio of 100%, maximizing efficiency.
For assets such as bitcoin and Ethereum, the ratios are volume-dependent: small amounts have higher ratios, gradually decreasing as volume increases, balancing efficiency and risk.
For example, the first bitcoins are secured at a 97.5% rate, then the rate drops to 97% for 1-5 BTC, 96.5% for 5-10 BTC, 96% for 10-50 BTC and 85% for 50-100 BTC. A similar principle is applied to Ethereum and other popular assets depending on liquidity and market dynamics.
This mechanism prevents one large asset from dominating the margin pool, increases the overall stability of the system and encourages diversification, while keeping widely used tokens like BTC, ETH, USDT and USDC maximized as collateral.
“With Multi-Asset Margin mode, we directly respond to user needs by providing greater efficiency and security. In a highly volatile and risky environment, this solution gives traders a more flexible and sustainable position management tool,” said MEXC Chief Operating Officer Tracy Jean.
The new Multi-Asset Margin mode is already available to all users.