At KCEX, we are committed to providing our users with the best trading experience and financial security. To this end, we have specially introduced the Automatic Margin Addition feature, aimed at helping traders manage risk and prevent unnecessary forced liquidations.
Feature Overview:
The Automatic Margin Addition feature allows traders to automatically add margin to their futures positions, thus avoiding forced liquidation due to insufficient margin. Once this feature is enabled, when the risk of a position approaches the forced liquidation standard, the system will automatically transfer available margin from the trader's account to the position margin, maintaining the open status of the position.
Automatic Margin Addition Calculation Method:
The amount of margin automatically added is calculated as: Opening Average Price × Position Quantity(Tokens) × Maintenance Margin Rate.
Practical Operation Example:
Example (using the ETH_USDT long futures as an example): A trader opens a 2000 long position at an ETH_USDT price of 3500 USDT using 5x leverage. Assume the estimated forced liquidation price for this position is 3300 USDT. The user's remaining available margin is 80 USDT.
When the market's mark price falls to 3300 USDT, reaching the estimated forced liquidation price, the automatic margin addition feature will be activated, using the user's remaining available margin to prevent the position from being liquidated. According to the automatic margin addition formula, the system calculates that 40 USDT needs to be added; after addition, the forced liquidation price will adjust to 3250 USDT, providing a greater buffer and thus avoiding the risk of the user's position being forcibly liquidated.
If the price of ETH_USDT continues to fall, reaching the new estimated forced liquidation price of 3250 USDT, the automatic margin addition feature will be activated again. Since the user's remaining available margin is 40 USDT (considering the previously added 40 USDT), the system will add all of this margin, thereby recalculating the new estimated forced liquidation price.
Important Reminders:
When the automatic margin addition feature is enabled, it may first cancel all of the position's unexecuted open orders to release more margin for addition. This feature is only available in isolated position mode and is not applicable in cross position mode. By introducing the automatic margin addition feature, KCEX enhances traders' ability to manage risk, making the trading process safer and smoother. We encourage all users to understand and make reasonable use of this feature to maximize the protection of their investments.
This announcement is intended to increase user awareness of the automatic margin addition feature and is not a legal document. KCEX reserves the right to adjust the content of this announcement.
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KCEX Team