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 = marginrequired

**BTCUSD.lv:**

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.