Quick answers to the most common questions. For deeper background, follow the article links.

Why isn't Spot Margin available by default?

Short selling carries different risks from buying crypto. The knowledge test makes sure you understand those risks before exposing your funds.

What if I fail the knowledge test?

You can retake it. There's no penalty. Re-read the help articles between attempts.

Is Spot Margin available on web?

Not at launch. Spot Margin is available in the Coinmerce mobile app only.

Which assets can I short?

At launch: BTC, ETH, and XRP. The asset list will expand based on demand.

Can I have multiple open positions on the same asset?

Not at launch. Only one position per asset is allowed. You can hold positions on different assets at the same time.

Is there a limit on position size?

Your position size equals the collateral you deposit (because of the 1× structure). Maximum collateral per asset is €10,000.

Can I add collateral to an open position?

No. Once opened, you cannot add or withdraw collateral, or change the position size. You can only close it in full.

Can I partially close a position?

No. Closing closes the full position.

Can I set a stop-loss or automatic close?

Not at launch. You'll need to monitor the position and close it manually. This is something we plan to add later.

Can I close at any time?

Yes. You can close voluntarily 24/7 as long as the market is operational.

What are the fees?

See the full Fee Schedule for current borrowing rates per asset.

When is the borrowing fee deducted?

It accrues every 4 hours while your position is open and is deducted from your collateral when you close (or are liquidated).

Can borrowing rates change while my position is open?

Yes. Rates respond to market conditions and can change during the term of an open position.

What does the Position Risk Indicator mean?

It's a Low / Medium / High signal showing how close your position is to liquidation. High means liquidation is near. Close voluntarily if you don't want to risk a force-close.

Can I lose more than my collateral?

No. The 1× isolated structure caps your loss at the collateral you deposited. You will never owe Coinmerce money.

Will I get a warning before liquidation?

Coinmerce will attempt to send a push notification when your risk level rises, but it's not guaranteed. You're responsible for monitoring your position.

If I'm liquidated, do I get anything back?

Whatever remains after the buyback, the 2.00% liquidation fee, the closing fee, and accrued borrowing fees is returned to your main account. In severe price gaps, this can be zero, but it's never negative.

Is the lending part of Spot Margin regulated under MiCAR?

No. The exchange transactions that open and close your position are regulated, but the lending of crypto from Coinmerce to you is not currently a service regulated under MiCAR. Details are in the Spot Margin T&Cs.

Could I just sell crypto I already own instead of shorting?

Yes, and for many users that's simpler. Spot Margin is most useful when you don't already hold the asset but want exposure to a price drop, or when you want to keep your existing holdings while taking a separate bearish position.

How is this taxed?

Tax depends on your country and personal situation. We provide transaction history you can use for reporting, but we can't give tax advice. Please consult a qualified tax professional.

If your question isn't covered here, contact support. Include your account email and a description of the position or scenario you're asking about.