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Risk Rate
The risk rate is the numeric representation of the safety of your deposited assets against the borrowed assets and their underlying value. The higher the value is, the safer the state of your funds are against a liquidation scenario. If the risk rate reaches 100%, the liquidation of your deposits will be triggered. The risk rate depends on the liquidation threshold of your collateral against the value of your borrowed funds.
Risk rate of cross margin account = total value of assets / (total value of liabilities + unpaid service fee)
Wherein, the conversion of market value is denominated in USDT;
When RR=<100%, the loan is undercollateralized, it may be liquidated to maintain solvency.
Total value of assets = Current total market value of each asset position.
Total liabilities = Current total market value of all asset loans outstanding
Platform service fee = Amount of each loan * duration of the loan at the time of calculation * hourly service rate - offset/paid service fee.
Total fees = Due interest rates+ platform service fee
When the risk rate of the cross margin account reaches 120% (“warning line”), the system will send a message to the user via his/her contact information, notifying the trading risk. Upon receipt of the message, the user shall repay the loan or transfer the full amount of the margin from the exchange account in a timely manner to ensure that the conversion rate of the margin remains above the warning line.
When the risk rate of the cross margin account reaches 100% (the “forced liquidation line”), the system will automatically trigger the forced liquidation, liquidating the positions in the cross margin account held by the user, and automatically repaying all leveraged loans of the user. If the user has more than one leveraged loan, the repayment will be made in chronological order as the loan occurs, and the loan that occurs first will be repaid first. If all the assets in the user’s cross margin account are insufficient to repay all loans (“worn-out position”), the Platform shall have the right to continue to recover debts from the user.
Purchase amount available = max (position limit – holding of tokens, 0) +max [(risk rate of the cross leveraged account - threshold of the buying quota risk rate) * (total value of liabilities + unpaid service fee)/ latest trading price for USDT paired trading, 0]
Wherein, the conversion of market value is denominated in USDT and the current position limit is ∞
When the utilization rate of an asset on Lever is close to 100%, leveraged short selling cannot be carried out until there is a new deposit in the asset.
Last modified 5mo ago
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