USDT Now Available as Cross Collateral for Derivatives Trading

We’re thrilled to announce the immediate availability of USDT as collateral when trading derivatives using Gemini’s cross collateral feature.

In addition to the recent announcement of ETH as collateral, Gemini’s perpetual contracts—denominated in Gemini Dollars (GUSD)—now offer even greater flexibility with cross-collateral support. Customers can now use USDT, ETH, BTC, and GUSD as collateral to trade perpetual contracts, providing a wider range of funding options and enhancing trading flexibility.

What is Cross Collateral?

When trading derivatives, you are required to deposit funds, known as collateral, in order to open and maintain derivatives positions. The collateral required to open a position is your Initial Margin. The collateral required to keep your position open is known as Margin maintenance limit, and the total amount of collateral available for trading is your Margin Assets Value.

To learn more about margin, check out our article: Gemini Foundation Academy: Understanding Margin and Leverage.

Collateral serves as a buffer to cover potential losses in the event that your derivatives position moves against you. You are required to hold sufficient collateral to meet margin requirements, and keep in mind that collateral assets are at risk of liquidation when margin requirements are not met. Please note that even with sufficient margin, your collateral assets may still be at risk of liquidation if a negative balance occurs and the ‘Negative Balance’ setting is turned off, or if your negative balance exceeds the allowable thresholds.

To learn more about negative balances on your derivatives account, check out our article: What are negative balances and negative balance fees in cross collateral trading?

Even if you don't have cross collateral enabled, you can still easily fund your derivatives account on Gemini. Simply transfer SGD, USD, or USDC into your derivatives account, and the funds will automatically be converted to GUSD - offering you flexible funding options to suit your needs.

How to Open a Derivatives Account

If you have yet to create a Gemini account and reside in a derivatives-enabled jurisdiction, sign up for an account here to receive both a spot and derivatives trading account.

For current Gemini spot users in derivatives-enabled jurisdictions, follow the steps below to activate your derivatives account today.

1. Log on via desktop or mobile web browser
2. Select the Account drop-down list at the top left of your screen
3. Select “Activate Now” next to the Derivatives Account option to begin the activation process
4. Read and accept the derivatives-specific terms and conditions
5. Transfer GUSD,BTC, or ETH to your derivatives account
6. Start trading!

Stay tuned for more updates and features to elevate your derivatives trading experience.

Onward and Upward,

The Gemini Foundation Team