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A haircut is the discount applied to your collateral’s market value when calculating your credited margin. Haircuts and collateral caps apply to collateral allocated to the user’s Perps balance. Assets allocated to the user’s Spot balance are not subject to a haircut. Example: A 10% haircut on a $1,000 SPY-equivalent balance means the exchange credits you with $900 of margin. The haircut does not reduce the underlying token quantity. Withdrawal availability remains subject to margin requirements and other applicable restrictions; the haircut affects only how much of the displayed value counts toward margin, absorbing price volatility and the cost of converting collateral to USDC if Auto-Exchange or liquidation is ever triggered. Key details:
  • Collateral ratio equals 1 minus the haircut (10% haircut = 0.90 collateral ratio).
For details on accepted collateral see Funding Ondo Perps.

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How Margin Is Calculated

Perps margin health is represented by a single number called margin balance:
Where:
  • Non-USDC Margin Value: the total post-haircut value of eligible tokenized stocks allocated to the user’s Perps balance, subject to each asset’s cap. For a reference price quoted per equivalent unit, the calculation uses the displayed equivalent quantity × reference price × (1 − haircut). The displayed equivalent quantity is calculated from the underlying token quantity and applied S value.
  • USDC balance: The user’s Perps USDC balance, which can be negative because of losses or fees.
  • Unrealized PnL: Profit or loss on open perpetual positions.
  • Funding: Accumulated perpetual funding payments.
Your margin balance captures everything that affects Perps margin health in one number. It moves when asset prices change, when your positions gain or lose value, when you pay fees, and when funding payments accrue.