Here’s the Margin Quiz Key Answer. * = Answer. Binance Margin includes cross margin and isolated margin.

Here’s the Margin Quiz Key Answer. For Binance : * = Answer

1 – Binance Margin includes cross margin and isolated margin. Which one of the following sentences does not describe their difference?
In the isolated margin, borrowing, trading, and risk management functions are included in an independent isolated margin account, while in the cross margin, each user can only open one cross margin account where borrowing, trading, and risk management functions are available.

*They have different interest rates
They have a different maximum leverage ratio
They support different borrowable

2. Margin level is used to evaluate the risk level of your margin account. How is margin level calculated?

1. – *Margin level = total assets value/(total borrowed value + total accrued interest value)
   margin level = total borrowed value/ total accrued interest value
2. Which one of the following events will force you to liquidate?

1. Which one of the following events will force you to liquidate?
   *The margin level has reached the liquidation level
   The current margin level has reached the initial margin level
   The total debt is lower than the total interest

1. How often is margin interest calculated?
   *Hourly, at the time of borrowing
   Daily
   Monthly

1. Do you need to borrow manually before trading?
   Yes
   *No, you can use the “auto borrow” function on the trading page.

1. Which one of the following factors does not affect your maximum borrowing limit?
   *The borrowing period
   The amount of fund in your margin account
   Your VIP level
   The system borrowing limit
   Your individual borrowing limit

1. Which one of the following sentences is correct regarding your borrowing interest rate?
   *The borrowing interest rate will change with the market, and the system will notify you when it changes
   The borrowing interest rate will be determined at the time of borrowing, no changes afterward

1. In the event of liquidation, how to repay your debts?
   *Binance insurance funds will write off your debts
   You are required to repay the debts yourself

1. How to pay the interest fee with BNB in a cross margin
   *Transfer BNB to cross margin account and repay manually
   Repay with the loan

1. When you receive a margin call notification, what should you do?
   Borrow more funds to hedge the risk
   *Reduce your position to repay the debt or add more collateral into the margin account
   Do nothing

11. When trading on Margin, a forced liquidation occurs when the margin risk ratio (total assets/total debts) reaches the liquidation risk ratio. Users are charged a “Liquidation Clearance Fee” in the event of forced liquidation. Which of the following contains the correct description for Liquidation Clearance Fees?

he Liquidation Clearance Fee is a fixed value for each liquidation.

When the position is forcedly liquidated, the user will only be charged with commission fees of liquidation orders and does not need to pay additional “Liquidation Clearance Fees”.

*When the position is forcedly liquidated, a Liquidation Clearance Fee will be charged according to the amount of the assets being liquidated. The system may use all the remaining assets in the margin wallet to complete the liquidation.

12. When the margin risk ratio (total assets/total debts) of your margin wallet reaches liquidation risk ratio, which one of the following best describes what will happen?

When your margin wallet is under liquidation, you will not be able to trade with this wallet.

The system will automatically sell your assets to repay your debts. You will be charged a liquidation

clearance fee according to the amount of assets being liquidated.

*All of the above.