Risk limits

A user engaging in perpetual contract trading is required to set a risk limit. This enables users to effectively mitigate their own position risks, especially in situations where other users' positions are automatically reduced due to the margin call of substantial positions held by individual users. In instances where a high-level user experiences an insufficient maintenance margin rate, liquidation is not triggered immediately; instead, the risk limit level is lowered (accompanied by a reduction in some positions and the maintenance margin rate) to the minimum level.

The higher the risk limit, the greater the proportion of maintenance margin paid, and the proportion of the initial margin. This approach serves to minimize the risks of liquidation for users' positions.

If a user's positions surpass the specified risk limit, the user will be unable to place orders. Users retain the flexibility to adjust the risk limit level at any time; however, adjustments cannot be made if the margin is insufficient.