# Spot Collateral

*Added as part of the unified margin rollout.*

Each eligible spot asset contributes collateral to a cross-margin account according to four per-asset parameters. The contribution is bounded by a per-user USD cap on market value and may be boosted for the portion of the balance hedged by an opposing cross-margin short.

### Parameters

| Parameter                    | Description                                                                                                                  |
| ---------------------------- | ---------------------------------------------------------------------------------------------------------------------------- |
| `collateral_enabled`         | If false, the asset contributes zero collateral regardless of balance or settings.                                           |
| `ltv_ratio`                  | Loan-to-value ratio, between 0 and 1. Typical values: 0.90 (BTC, ETH), 0.80 (majors).                                        |
| `spread_divisor`             | Hedging bonus multiplier applied to the hedged portion of a balance. Optional. Bonus applies only when `spread_divisor > 1`. |
| `collateral_value_limit_usd` | Per-(user, asset) cap on the asset's gross market value that is eligible for collateral. Default 10,000 USD.                 |

Parameter values are published via `GET /api/v1/spot_assets`. The per-user cap can be raised by admin override.

### Collateral curve

For spot balance `B`, oracle price `P`, and hedged size `H` (the portion of `B` offset by a cross-margin short perpetual in the same underlying; isolated shorts do not count):

```
base_rate    = ltv_ratio * P
bonus_rate   = P * (1 - ltv_ratio) * (1 - 1 / spread_divisor)   (when spread_divisor > 1, else 0)
hedged_rate  = base_rate + bonus_rate
capped_units = collateral_value_limit_usd / P
hedged_units = min(H, B, capped_units)
base_units   = min(B, capped_units) - hedged_units

spot_collateral_value = hedged_rate * hedged_units + base_rate * base_units
```

Units beyond `capped_units` contribute no additional collateral; they remain in the account and are fully tradeable. Because `capped_units` is defined in terms of market value, the maximum collateral a single (user, asset) pair can contribute to cross margin is `ltv_ratio * collateral_value_limit_usd` (e.g. 9,000 USD at `ltv_ratio = 0.9` and the 10,000 USD default cap).

### Hedging bonus example

SOL with `ltv_ratio = 0.80`, `spread_divisor = 1.05`, `P = 150`. Account holds 100 SOL spot and a 50 SOL cross-margin short perpetual. Assume the balance is below the per-user cap.

```
base_rate    = 0.80 * 150                                  = 120
bonus_rate   = 150 * (1 - 0.80) * (1 - 1/1.05)             ≈ 1.4286
hedged_rate  = 120 + 1.4286                                ≈ 121.4286
hedged_units = 50
base_units   = 50

spot_collateral_value ≈ 121.4286 * 50 + 120 * 50           ≈ 12,071.4
```

Without the hedge, the same 100 SOL would contribute `120 * 100 = 12,000`. The hedge adds roughly 71.4 USD of additional collateral.

### Spot sell orders

Placing a spot sell order locks the base asset against the order. Locked units are excluded from `spot_collateral_value` until the order fills or is cancelled. See [Spot Trading](/docs/trading-on-pacifica/spot-trading.md#balance-locks).

### Excluding an asset from unified margin

Setting `unified_margin_excluded = true` on a (user, asset) pair removes its collateral contribution. The balance remains in the account and can be bought, sold, withdrawn, or transferred normally.


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