Skip to content

Haircut

A haircut is a reduction applied to the value of an asset when determining how much of that value will be recognized for collateral or risk purposes.

Why it matters to you

If $10,000 of an asset receives a 10% haircut, only $9,000 may be recognized for the relevant collateral calculation. Haircuts help account for risks such as volatility, liquidity and potential changes in asset value.

See the perpetuals front

The tools, the live market and the course.