About Coin8 Coin-M Futures Leverage and Risk Management

The following text is about Coin8 Coin-M Futures leverage and risk management

 

To avoid market manipulation, Coin8 uses the mark price for liquidation. Leverage and risk will be measured according to the user's total position risk in a certain margin currency.

 

Liquidation in cross margin mode

Cross margin mode account funds (excluding isolated margin and unrealized PnL in isolated margin mode) < maintenance margin (when the margin ratio reaches 100%).

Maintenance margin = maintenance margin rate x position value (for hedge positions, the calculation is based on larger positions).

 

Liquidation in isolated margin mode

Margin in isolated margin mode + unrealized PnL < maintenance margin (when the margin ratio reaches 100%).

In order to minimize losses due to liquidation and protect positions, Coin8 adopts gradual deleveraging for risk management.

 

When a risk treatment occurs, the following actions are performed:

1. Order Cancellation: In isolated margin mode, only opening and closing orders for the current position are canceled. In cross margin mode, all opening and closing orders are canceled (including any in isolated margin mode).

2. Netting: The hedge position orders of all trading pairs (excluding isolated margin mode) are canceled.

3. Deleveraging: According to the position tier, the position is deleveraged two tiers at a time (excluding isolated margin mode).

4. When a position is liquidated, any remaining positions will be placed as flash orders in the market (excluding isolated margin mode).

Note: Once the risk treatment process is triggered, the risk control engine will temporarily take over your position, and the liquidation transaction price will not be reflected in the transaction record or candlestick chart data. During the risk treatment process, other operations are prohibited until the treatment is completed.