Interdax provides an innovative instant settlement system, where the balance of each cryptocurrency (asset) instantly reflects PnL from any derivatives positions, balance transfers, and withdrawal/deposits (once they are confirmed).
For example, if one enters 1 BTC worth long of a derivative position and the price grows by 50%, that gained 0.5 BTC will be immediately reflected in the balance and available for withdrawals, transfers, or used as collateral for trading other derivatives. In addition to sub-account systems, traders are provided with great flexibility and can enter complex portfolios while tailoring their risk exposure at any time.
Balances of each cryptocurrency are isolated from other cryptocurrencies. For example, with derivatives settled in BTC the margin will be calculated independently from derivatives settled in ETH or USDT, thus the liquidation of BTC-settled positions leaves all other cryptocurrency balances intact.
Correspondingly, ETH or USDT balances will not be used as collateral for BTC-settled derivatives (i.e., BTC-PERP), BTC or USDT balances will not be used as collateral for ETH-settled derivatives (i.e., ETH-PERP), and BTC or ETH balances will not be used as collateral for USDT-settled derivatives (e.g., LINK-PERP-USDT).
Interdax allows the exchange of one asset into another using regular spot instruments (such as BTC-USDT and ETH-USDT). When 1 BTC is purchased for 10,000 USDT, the USDT balance will decrease by 10,000 USDT and the BTC balance will increase by 1 BTC correspondingly.
Note that spot trades will not create a position in the positions panel, since it represents an immediately settled exchange of one balance with another. Only derivative trades can create positions.
Before the order is placed, its limitPrice*quantity is placed on hold for buy orders for corresponding asset and quantity for sell orders for corresponding asset as well. There should be enough available funds to be placed on hold in order for the order to go through.
For example, with a buy order of 2 BTC with limit price of 10,000 USDT, 20,000 USDT will be placed on hold and correspondingly cannot be used for anything else and is subtracted from the balance available for trading. When a sell order for 2 BTC is placed, 2 BTC are placed on hold.
Holds are released when either; the order gets filled or cancelled.
If available balance is not sufficient for margin requirements of maintaining derivatives position, all corresponding spot orders will be cancelled to release holds to prevent premature liquidations.