To mitigate market liquidity impact and significant over-loss risks from large position liquidations, our platform employs a tiered position reduction mechanism.
Key Features:
- Each tier has distinct Maintenance Margin Ratio requirements
- When the system detects insufficient margin for the current tier:
✓ Automatically reduces position size
✓ Adjusts to the next tier's corresponding level
Mechanism Advantages:
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Gradual position reduction prevents market shocks
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Maintains orderly liquidation processes
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Protects both traders and exchange ecosystem
Note: Triggering occurs when: Margin Balance < Tier Maintenance Requirement