Automatic Deleveraging
During investors' trading activities, in the unfortunate event of triggering a forced liquidation, the KCEX perpetual futures platform will automatically take over any remaining open positions. If the market is unable to fill the liquidated positions in a timely manner and the market price approaches the bankruptcy price, our Automatic Deleveraging System (ADL) will automatically initiate appropriate deleveraging measures for investors holding profiting opposing positions. The priority of deleveraging will be adjusted based on factors such as leverage ratios and profit-to-loss ratios.
Operation of the Deleveraging Mechanism
When the forced liquidation price of an investor is close to the bankruptcy price, and the insurance fund is insufficient, the Automatic Deleveraging strategy will be triggered automatically.
Based on the counterparty traders' profit-to-loss ratios and actual leverage, the system calculates the effective leverage and profit-to-loss rankings. Traders who exhibit superior profitability and more aggressive trading strategies are given priority and subjected to ADL deleveraging.
We are committed to providing you with a secure and transparent digital currency trading environment. If you have any questions, please feel free to contact our customer service team.
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Enjoy trading on KCEX,
The KCEX Team