Crypto.com will be making certain identified and necessary improvements on the Smart Cross Margin within the Crypto.com Exchange. The modifications will become effective on October 30, 2023.
Some of the factors included in the improvements include increased capital effectiveness. Through this, the negative USD balances will not come with initial margin or maintenance margin needs. This will help in improving capital effectiveness in the USD experience. Interest rates will be charged on negative USD balances.
There will be greater liquidity buffers by delivering a minimum haircut rate. This will take the place of the present maximum collateral weight count. The haircut rate will not be taken away from the margin balance. Instead, it will be added to the margin needed. This will help in offering further buffers.
In addition, there will be maximum margin requirements. The maximum account facility does not affect the required margin or maintenance margin. The risk factor will be used to assess liquidations. This will facilitate control over account utilities without imposing unwelcome margin requirements. As per our Crypto.com review, this exchange offers traders an excellent trading experience, and such improvements will benefit users with improved trading exposure.
Crypto.com’s Smart Cross Margin (SCM) is a new-age trading system that allows traders to do away with margin needs for positioning in opposing directions. It also applies to multiple product sorts, like Margin, Futures, Perpetual Futures, and Spot. Smart Cross Margin introduces capital effectiveness and lessens margin needs. Traders stand at an advantage with more liquidity and workability.