Risk Rules
1. Risk Ratio
Definition: Risk Ratio = Loan Principal & Interest / Position Value (converted to USDT) x 100%
Risk Ratio < 75%: The position is considered safe.
Risk Ratio > 75%: The position is at higher risk, triggering a system warning alert.
Risk Ratio > 85%: This will initiate forced liquidation by the system.
Upon forced liquidation, the system will deduct 2% of the liquidation proceeds as a risk fund. Details can be found under "Record Inquiry" -> "Forced Liquidation History" on the app's homepage.
2. Take Profit and Stop Loss
I. Order Type Selection
Market Take-Profit/Stop-Loss
Execution Logic: Triggers and executes immediately at the latest market price.
Applicable Scenario: Fast position exit, prioritizing execution speed.
Limit Take-Profit/Stop-Loss
Execution Logic: Triggers and places an order at the specified limit price.
Applicable Scenario: Precise price control, avoiding slippage.
II. Parameter Configuration Guide
Trigger Price
The system continuously monitors the Mark Price.
The order is activated immediately when the trigger price is reached.
Order Price (Limit Orders Only)
Must comply with the trading channel’s limit price rules (prompts will appear on the app page).
Position Ratio
Supports closing 1%-100% of the position.
After partial reduction, the remaining position stays open.
3. Position Management
During the holding period, please manage your position prudently according to the risk ratio.
At any time after opening a position, you can add funds to the position to reduce both the leverage ratio and the risk ratio.
When the risk ratio is within the safety threshold, you can add to your position. The system will automatically borrow funds and convert them to your held asset to increase the position.
Additionally, you can withdraw a portion of the position to your leverage trading account.
4. Forced Liquidation
I. Forced Liquidation Trigger Mechanism
When your account’s risk level reaches the forced liquidation threshold, the system will automatically execute the following process:
Order Cancellation Phase
The system will first cancel all your pending orders (including limit orders, take-profit/stop-loss orders, etc.).
This ensures a smooth liquidation process.
Partial Liquidation Phase
The system calculates the optimal liquidation amount based on real-time market prices.
A batch liquidation strategy is used to gradually reduce the risk level to a safe range.
After each liquidation, the system automatically repays a portion of the debt.
Full Liquidation Phase
If the remaining position value falls below the system’s minimum liquidation threshold (typically equivalent to 100U),
The system will liquidate the entire remaining position in a single execution.
II. Important Notes
⚠️ Market Order Execution Characteristics
Forced liquidation is executed via market orders.
During high volatility, slippage may occur, affecting the actual execution price.
In extreme market conditions, slippage may be significantly amplified.
⚠️ Risk Reserve Deduction
After each forced liquidation,
The system will deduct a fixed percentage from the liquidation proceeds as a risk reserve fund.
Liquidation Fee Rate
BTC, ETH
1%
SOL, DOGE, BNB, BCH and others
2%
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