What is a Risk Limit?
A risk limit is a crucial risk management tool designed to reduce potential risks from market fluctuations by setting a maximum position size for the user. In contract trading, the risk limit helps prevent significant market price volatility caused by large-scale forced liquidations.
Explanation of Risk Limit Parameters
Risk limits comprise several key parameters with distinct risk management functions:
Base Risk Limit: The initial maximum position size allowed per contract market. Once this limit is exceeded, both maintenance margin ratios and initial margin rates increase.
Maintenance Margin Rate: The platform's minimum margin requirement for forced liquidation. Lower rates make liquidation harder to execute, particularly during low market liquidity.
Initial Margin Rate: The minimum margin required when opening positions. This rate rises as risk limits increase.
Role of the Risk Limit
The main function of the risk limit is to protect market liquidity and prevent market volatility caused by large forced liquidations.
In extreme market conditions, large positions can lead to significant losses, which may negatively impact the entire market. By setting risk limits, the system can adjust the user's margin requirements promptly, reducing potential risks.
How to Adjust the Risk Limit?
Users can increase the risk limit based on their needs, but they should be aware that raising the risk limit will directly affect the increase in the maintenance margin rate and the initial margin rate, leading to a reduction in the maximum leverage ratio.
The risk limits are as follows:
Contracts | Level | Risk limit | Maximum leverage ratio available | Maintenance margin rate |
BTCUSDT | 1 | 20.0001 | 100 | 0.005 |
BTCUSDT | 2 | 50.0001 | 50 | 0.01 |
BTCUSDT | 3 | 100.0001 | 30 | 0.0167 |
BTCUSDT | 4 | 250.0001 | 20 | 0.025 |
BTCUSDT | 5 | 500.0001 | 15 | 0.0333 |
BTCUSDT | 6 | 1,000.0001 | 10 | 0.05 |
BTCUSDT | 7 | 1,500.0001 | 8 | 0.0625 |
BTCUSDT | 8 | 2,000.0001 | 5 | 0.1 |
BTCUSDT | 9 | 2,500.0001 | 3 | 0.1667 |
ETHUSDT | 1 | 200.0001 | 100 | 0.005 |
ETHUSDT | 2 | 500.0001 | 50 | 0.01 |
ETHUSDT | 3 | 1,000.0001 | 30 | 0.0167 |
ETHUSDT | 4 | 2,500.0001 | 20 | 0.025 |
ETHUSDT | 5 | 5,000.0001 | 15 | 0.0333 |
ETHUSDT | 6 | 10,000.0001 | 10 | 0.05 |
ETHUSDT | 7 | 15,000.0001 | 8 | 0.0625 |
ETHUSDT | 8 | 20,000.0001 | 5 | 0.1 |
ETHUSDT | 9 | 25,000.0001 | 3 | 0.1667 |
TRUMPUSDT | 1 | 10,000.0001 | 50 | 0.01 |
TRUMPUSDT | 2 | 20,000.0001 | 20 | 0.025 |
TRUMPUSDT | 3 | 50,000.0001 | 15 | 0.033 |
TRUMPUSDT | 4 | 100,000.0001 | 10 | 0.05 |
TRUMPUSDT | 5 | 200,000.0001 | 5 | 0.1 |
MELANIAUSDT | 1 | 100,000.0001 | 50 | 0.01 |
MELANIAUSDT | 2 | 200,000.0001 | 20 | 0.025 |
MELANIAUSDT | 3 | 500,000.0001 | 15 | 0.033 |
MELANIAUSDT | 4 | 1,000,000.0001 | 10 | 0.05 |
MELANIAUSDT | 5 | 2,000,000.0001 | 5 | 0.1 |
LTCUSDT | 1 | 5,000.0001 | 50 | 0.01 |
LTCUSDT | 2 | 10,000.0001 | 20 | 0.025 |
LTCUSDT | 3 | 20,000.0001 | 15 | 0.033 |
LTCUSDT | 4 | 50,000.0001 | 10 | 0.05 |
LTCUSDT | 5 | 100,000.0001 | 5 | 0.1 |
ETCUSDT | 1 | 10,000.0001 | 50 | 0.01 |
ETCUSDT | 2 | 20,000.0001 | 20 | 0.025 |
ETCUSDT | 3 | 50,000.0001 | 15 | 0.033 |
ETCUSDT | 4 | 100,000.0001 | 10 | 0.05 |
ETCUSDT | 5 | 200,000.0001 | 5 | 0.1 |
DOTUSDT | 1 | 20,000.0001 | 50 | 0.01 |
DOTUSDT | 2 | 50,000.0001 | 20 | 0.025 |
DOTUSDT | 3 | 100,000.0001 | 15 | 0.033 |
DOTUSDT | 4 | 200,000.0001 | 10 | 0.05 |
DOTUSDT | 5 | 500,000.0001 | 5 | 0.1 |
SOLUSDT | 1 | 5,000.0001 | 50 | 0.01 |
SOLUSDT | 2 | 10,000.0001 | 20 | 0.025 |
SOLUSDT | 3 | 20,000.0001 | 15 | 0.033 |
SOLUSDT | 4 | 50,000.0001 | 10 | 0.05 |
SOLUSDT | 5 | 100,000.0001 | 5 | 0.1 |
BCHUSDT | 1 | 500.0001 | 50 | 0.01 |
BCHUSDT | 2 | 1,000.0001 | 20 | 0.025 |
BCHUSDT | 3 | 2,000.0001 | 15 | 0.033 |
BCHUSDT | 4 | 5,000.0001 | 10 | 0.05 |
BCHUSDT | 5 | 10,000.0001 | 5 | 0.1 |
XRPUSDT | 1 | 500,000.0001 | 50 | 0.01 |
XRPUSDT | 2 | 1,000,000.0001 | 20 | 0.025 |
XRPUSDT | 3 | 2,000,000.0001 | 15 | 0.033 |
XRPUSDT | 4 | 5,000,000.0001 | 10 | 0.05 |
XRPUSDT | 5 | 10,000,000.0001 | 5 | 0.1 |
PEPEUSDT | 1 | 20,000,000,000.0001 | 50 | 0.01 |
PEPEUSDT | 2 | 50,000,000,000.0001 | 20 | 0.025 |
PEPEUSDT | 3 | 100,000,000,000.0001 | 15 | 0.033 |
PEPEUSDT | 4 | 200,000,000,000.0001 | 10 | 0.05 |
PEPEUSDT | 5 | 500,000,000,000.0001 | 5 | 0.1 |
SUIUSDT | 1 | 100,000.0001 | 50 | 0.01 |
SUIUSDT | 2 | 200,000.0001 | 20 | 0.025 |
SUIUSDT | 3 | 500,000.0001 | 15 | 0.033 |
SUIUSDT | 4 | 1,000,000.0001 | 10 | 0.05 |
SUIUSDT | 5 | 2,000,000.0001 | 5 | 0.1 |
ADAUSDT | 1 | 500,000.0001 | 50 | 0.01 |
ADAUSDT | 2 | 1,000,000.0001 | 20 | 0.025 |
ADAUSDT | 3 | 2,000,000.0001 | 15 | 0.033 |
ADAUSDT | 4 | 5,000,000.0001 | 10 | 0.05 |
ADAUSDT | 5 | 10,000,000.0001 | 5 | 0.1 |
AVAXUSDT | 1 | 10,000.0001 | 50 | 0.01 |
AVAXUSDT | 2 | 20,000.0001 | 20 | 0.025 |
AVAXUSDT | 3 | 50,000.0001 | 15 | 0.033 |
AVAXUSDT | 4 | 100,000.0001 | 10 | 0.05 |
AVAXUSDT | 5 | 200,000.0001 | 5 | 0.1 |
TONUSDT | 1 | 50,000.0001 | 50 | 0.01 |
TONUSDT | 2 | 100,000.0001 | 20 | 0.025 |
TONUSDT | 3 | 200,000.0001 | 15 | 0.033 |
TONUSDT | 4 | 500,000.0001 | 10 | 0.05 |
TONUSDT | 5 | 1,000,000.0001 | 5 | 0.1 |
DOGEUSDT | 1 | 2,000,000.0001 | 50 | 0.01 |
DOGEUSDT | 2 | 5,000,000.0001 | 20 | 0.025 |
DOGEUSDT | 3 | 10,000,000.0001 | 15 | 0.033 |
DOGEUSDT | 4 | 20,000,000.0001 | 10 | 0.05 |
DOGEUSDT | 5 | 50,000,000.0001 | 5 | 0.1 |
1000SHIBUSDT | 1 | 20,000,000.0001 | 50 | 0.01 |
1000SHIBUSDT | 2 | 50,000,000.0001 | 20 | 0.025 |
1000SHIBUSDT | 3 | 100,000,000.0001 | 15 | 0.033 |
1000SHIBUSDT | 4 | 200,000,000.0001 | 10 | 0.05 |
1000SHIBUSDT | 5 | 500,000,000.0001 | 5 | 0.1 |
XLMUSDT | 1 | 500,000.0001 | 50 | 0.01 |
XLMUSDT | 2 | 1,000,000.0001 | 20 | 0.025 |
XLMUSDT | 3 | 2,000,000.0001 | 15 | 0.033 |
XLMUSDT | 4 | 5,000,000.0001 | 10 | 0.05 |
XLMUSDT | 5 | 10,000,000.0001 | 5 | 0.1 |
UNIUSDT | 1 | 20,000.0001 | 50 | 0.01 |
UNIUSDT | 2 | 50,000.0001 | 20 | 0.025 |
UNIUSDT | 3 | 100,000.0001 | 15 | 0.033 |
UNIUSDT | 4 | 200,000.0001 | 10 | 0.05 |
UNIUSDT | 5 | 500,000.0001 | 5 | 0.1 |
SANDUSDT | 1 | 1,000,000.0001 | 50 | 0.01 |
SANDUSDT | 2 | 2,000,000.0001 | 20 | 0.025 |
SANDUSDT | 3 | 5,000,000.0001 | 15 | 0.033 |
SANDUSDT | 4 | 10,000,000.0001 | 10 | 0.05 |
SANDUSDT | 5 | 20,000,000.0001 | 5 | 0.1 |
OPUSDT | 1 | 100,000.0001 | 50 | 0.01 |
OPUSDT | 2 | 200,000.0001 | 20 | 0.025 |
OPUSDT | 3 | 500,000.0001 | 15 | 0.033 |
OPUSDT | 4 | 1,000,000.0001 | 10 | 0.05 |
OPUSDT | 5 | 2,000,000.0001 | 5 | 0.1 |
CRVUSDT | 1 | 100,000.0001 | 50 | 0.01 |
CRVUSDT | 2 | 200,000.0001 | 20 | 0.025 |
CRVUSDT | 3 | 500,000.0001 | 15 | 0.033 |
CRVUSDT | 4 | 1,000,000.0001 | 10 | 0.05 |
CRVUSDT | 5 | 2,000,000.0001 | 5 | 0.1 |
XTZUSDT | 1 | 100,000.0001 | 50 | 0.01 |
XTZUSDT | 2 | 200,000.0001 | 20 | 0.025 |
XTZUSDT | 3 | 500,000.0001 | 15 | 0.033 |
XTZUSDT | 4 | 1,000,000.0001 | 10 | 0.05 |
XTZUSDT | 5 | 2,000,000.0001 | 5 | 0.1 |
DYDXUSDT | 1 | 100,000.0001 | 50 | 0.01 |
DYDXUSDT | 2 | 200,000.0001 | 20 | 0.025 |
DYDXUSDT | 3 | 500,000.0001 | 15 | 0.033 |
DYDXUSDT | 4 | 1,000,000.0001 | 10 | 0.05 |
DYDXUSDT | 5 | 2,000,000.0001 | 5 | 0.1 |