Most futures exchanges require traders to convert their holdings into a single collateral currency — typically USDT or USD — before opening a position. LMEX takes a different approach. Its multi-asset collateral system allows you to use a broad range of cryptocurrencies and fiat-denominated balances directly as margin for futures trading, without converting them first.
What Multi-Asset Collateral Means in Practice
Consider a common scenario: you hold BTC and do not wish to sell it. On a standard exchange, you would convert that BTC to USDT, fund your futures position, then potentially buy BTC back later — incurring conversion fees and losing spot exposure in the interim.
On LMEX, you transfer your BTC from your spot wallet to your futures wallet and use it directly as margin. The BTC is valued at the current index price, adjusted by a small haircut to account for price volatility and liquidity risk. You retain your BTC exposure while simultaneously using it to back a futures position.
Supported Collateral Assets
LMEX accepts a wide range of assets as futures margin. These include major cryptocurrencies, leading stablecoins, and a comprehensive list of fiat currencies. The current collateral list — including each asset, its applicable haircut rates, and the conditions under which haircuts escalate — is maintained at lmex.io/en/trading-rules/collateral.
Always refer to that page before making collateral decisions. The list evolves as LMEX adds or adjusts supported assets.
How Haircuts Work
Every non-USD asset carries a haircut — a percentage reduction applied to its market value when calculating your available margin. The purpose is risk management: if your BTC collateral is worth $10,000 and carries a 0.85% haircut, LMEX calculates your available margin as $9,915 rather than the full $10,000.
Haircuts exist to protect the exchange from rapid adverse price moves in the collateral asset. Stablecoins pegged directly to USD carry the lowest haircuts. More volatile assets carry higher ones. Haircuts also escalate at larger position sizes — the larger the dollar value of a single asset used as collateral, the higher the haircut applied to that excess. This reflects the diminishing ease of liquidating large positions in less liquid assets cleanly.
The full haircut schedule for each supported asset is published at lmex.io/en/trading-rules/collateral.
Settlement Currencies
When you close a futures position at a profit, you choose the currency in which you receive settlement. LMEX currently supports the following settlement options:
Crypto: USD, USDT, USDC, BTC, ETH, SOL, XRP
Fiat: AED, AUD, CAD, CHF, EUR, GBP, HKD, INR, JPY, MYR, NZD, SGD
If you settle a profit in a cryptocurrency, your payout in units is slightly smaller than the raw USD equivalent would suggest, because the haircut rate for that asset is applied at the point of settlement.
Loss Deduction Order
When a futures position closes at a loss, LMEX deducts from your futures wallet in a defined priority order:
- USD (fiat)
- Non-USD fiat currencies
- Stablecoins
- Cryptocurrencies — highest-valued asset drawn upon first
This sequence protects your more volatile crypto holdings from being consumed first when losses are small and stablecoins or fiat are available.
How to Transfer Collateral to Your Futures Wallet
- Log in to LMEX and go to your Wallets page.
- Click the Transfer button in the upper right corner.
- Select the asset and amount you wish to transfer.
- Set the destination as your Futures Wallet.
- Confirm.
The asset will appear in your futures wallet and is automatically included in your margin calculation. No additional activation step is required.
Frequently Asked Questions
Can I use multiple assets as collateral at the same time? Yes. LMEX calculates your total margin balance across all eligible assets in your futures wallet, producing a single USD-equivalent margin figure used for position management.
What happens to my crypto collateral if I am liquidated? Losses are deducted in priority order: USD first, then non-USD fiat, then stablecoins, then crypto (highest-value first). Your volatile crypto holdings are the last to be drawn upon.
Does the value of my crypto collateral change my available margin over time? Yes. Because collateral is valued dynamically at current index prices (minus haircuts), a rise in your BTC price increases your available margin. A decline reduces it — which is why it is worth monitoring your margin ratio in volatile markets.
Where can I find the current full collateral list? Always use the live page at lmex.io/en/trading-rules/collateral — it is the authoritative and up-to-date source.
