Cryptocurrencies are classified into 4 groups each with 4 tiers with varying margin percentages. Depending on the cryptocurrency a client trades in, they will be assigned to a corresponding cryptocurrency group, and based on the notional value of their trades they will be assigned to a corresponding tier within the crypto-currency group.

Our major cryptocurrencies are assigned to Group 1 e.g BTCUSD.lv , where the margin percentage on Tier 1 is 10%, Tier 2 is 20%, Tier 3 is 50% and Tier 4 is 100%.

Group 2 cryptocurrencies e.g XRPUSD.lv, Tier 1 margin is 20%, Tier 2 is 40%, Tier 3 is 75% and Tier 4 is 100%.

Group 3 cryptocurrencies e.g SHIBUSD.lv, Tier 1 is 40%, Tier 2 is 60%, Tier 3 is 100% and Tier 4 is 100%.

Group 4 cryptocurrencies e.g SOLUSD.lv, Tier 1 is 100%, Tier 2 is 100%, Tier 3 is 100% and Tier 4 is 100%.

Calculation: Notional Value * margin rate as a decimal = margin required

**BTCUSD.lv Example 1:**

A client buys 4 contracts of BTCUSD.lv at a price of USD 21,450.

**Notional Value Calculation**

Notional value for margin = 21,450 (price) * 1 (contract size) * 4 (volume) = USD

85,800

**Margin Calculation**

BTCUSD.lv is a ‘Group 1’ CFD coin, so the first USD 50,000 the margin rate is 10%.

Margin requirement = 50,000 * 10% = USD 5,000.

For the remaining USD 35,800 the margin rate is 20%.

Margin requirement = 35,800 * 20% = USD 7,160.

The TOTAL margin required for this position is USD 5,000 + USD 7,160 = USD 12,160.

The same client now buys another 10 contracts of BTCUSD.lv at a price of USD

22,100.

Notional Value Calculation

Notional value for margin of the first trade is USD 85,800. Notional value for the second trade =

22,100 (price) * 1 (contract size) * 10 (volume) = USD 221,000.

Total notional value for margin on BTCUSD.lv = 85,800 + 221,000 = USD 306,800.

Margin Calculation

BTCUSD.lv is a ‘Group 1’ CFD coin. For the first USD 50,000 margin rate is 10%. Margin requirement

= 50,000 * 10% = USD 5,000.

For the next USD 200,000 the margin rate is 20%. Margin requirement = 200,000 * 20% = USD

40,000.

For the remaining USD 56,800 the margin rate is 50%. Margin requirement = USD 28,400.

The TOTAL margin required becomes USD 5,000 + USD 40,000 + USD 28,400 =

USD 73,400.

**XRPUSD.lv Example 2**

A client buys 40,000 lots of XRPUSD.lv, a Group 2 crypto-currency, at a price of 0.377700

The total notional value for this trade will be: Lots (40,000) * Market Price (0.377700) * Standard Contract Size (1) = 15,108 USD.

The Tier 1 margin for XRPUSD.lv ranges from a notional value of 0 to 50,000 and has a required margin of 20%.

For this trade, the entire 15,108USD notional value will fall in Tier 1. This will translate to a required margin of 15,108 * 20% = **USD** **3,021.60**

**SHIBUSD.lv Example 3**

A client buys 1300 lots of SHIBUSD.lv, a Group 3 crypto-currency, at a price of 0.00000970

The total notional value for this trade will be: Lots (1,300) * Market Price (0.00000970) * Standard Contract Size (1,000,000) = 12,610USD.

The Tier 1 margin for SHIBUSD.lv ranges from a notional value of 0 to 50,000 and has a required margin of 40%.

For this trade, the entire 12,610USD notional value will fall in Tier 1. This will translate to a required margin of 12,610 * 40% = **USD****5,044**

**SOLUSD.lv Example 4**

A client buys 200 lots of SOLUSD.lv, a Group 4 crypto-currency, at a price of 18.5000

The total notional value for this trade will be: Lots (200) * Market Price (18.5000) * Standard Contract Size (1) = 3,700USD.

The Tier 1 margin for SOLUSD.lv ranges from a notional value of 0 to 50,000 and has a required margin of 100%.

For this trade, the entire 3,700USD notional value will fall in Tier 1. This will translate to a required margin of 12,610 * 100% = **USD3,700**