Risk limit is a mechanism that implements incremental risk limit system to restrain risk exposure to traders. It uses the concept of dynamic leverage. It means that if you hold a large position, you will be allowed to use a lower leverage.
It helps minimize the risk of a liquidation cascade event on leveraged contracts. For example, if a large position with high leverage were to get liquidated in case of a market crash, it would cause other accounts to get liquidated along with it.
In this case, the auto deleveraging (ADL) system will be triggered. To minimize possibility of ADL occurrence, risk limit is implemented to on trading accounts based on the position they hold.
When such users’ maintenance margin rate is insufficient, liquidation will not be triggered immediately. Instead, the user’s risk limit level will be reduced (reducing some positions and reducing the maintenance margin rate at the same time) until it drops to the lowest risk level.
The higher the risk limit, the higher the ratio of the maintenance margin to the actual margin, which will reduce the user’s risk of liquidation. If the user's position is greater than the risk limit, order cannot be placed. User can adjust the risk limit level at any time as long as the margin is sufficient.
Here is the table showing risk limit for:
| Tier 1 | Tier 2 | Tier 3 | |||||||
| Symbol | Quantity | Initial Margin | Maintenance Margin | Quantity | Initial Margin | Maintenance Margin | Quantity | Initial Margin | Maintenance Margin |
| BTCUSDT | 10 | 1.0% | 0.50% | 30 |
2.00% |
1.50% | 250 | 4% | 3.50% |
| ETHUSDT | 200 | 1.0% | 0.50% | 600 |
2.00% |
1.50% |
2100 | 4% | 3.50% |
|
ADAUSDT |
250000 | 2.0% | 1.0% | 2800000 | 4% | 2.50% | - | - | - |
|
XRPUSDT |
200000 | 2.0% | 1.0% | 2300000 | 4% | 2.50% | - | - | - |
| BNBUSDT | 333 | 2.0% | 1.0% | 3000 | 4% | 2.50% | - | - | - |
| DOTUSDT | 16667 | 2.0% | 1.0% | 250000 | 4% | 2.50% | - | - | - |
| SOLUSDT | 3333 | 2.0% | 1.0% | 60000 | 4% | 2.50% | - | - | - |
| NEARUSDT | 25000 | 2.0% | 1.0% | 500000 | 4% | 2.50% | 250000 | 8% | 6.50% |
| FTMUSDT | 500000 | 2.0% | 1.0% | 2200000 | 4% | 2.50% | - | - | - |
| AVAXUSDT | 5000 | 2.0% | 1.0% | 15000 | 4% | 2.50% | 70000 | 8% | 6.50% |
| MATICUSDT | 125000 | 2.0% | 1.0% | 375000 | 4% | 2.50% | 1300000 | 8% | 6.50% |
| TRXUSDT | 1666667 | 2.0% | 1.0% | 5000000 | 4% | 2.50% | 8000000 | 8% | 6.50% |
| LTCUSDT | 2000 | 2.0% | 1.0% | 6000 | 4% | 2.50% | 20000 | 8% | 6.50% |
| XMRUSDT | 1000 | 2.0% | 1.0% | 3000 | 4% | 2.50% | 10000 | 8% | 6.50% |
| ALGOUSDT | 250000 | 2.0% | 1.0% | 750000 | 4% | 2.50% | 6000000 | 8% | 6.50% |
| FILUSDT | 16667 | 2.0% | 1.0% | 50000 | 4% | 2.50% | 166667 | 8% | 6.50% |
| APEUSDT | 20000 | 2.0% | 1.0% | 60000 | 4% | 2.50% | 200000 | 8% | 6.50% |
| MANAUSDT | 142857 | 2.0% | 1.0% | 428571.4286 | 4% | 2.50% | 1428571 | 8% | 6.50% |
| KSMUSDT | 2500 | 2.0% | 1.0% | 7500 | 4% | 2.50% | 40000 | 8% | 6.50% |
| EOSUSDT | 110,000 | 2.0% | 1.0% | 300,000 | 4% | 2.50% | 600,000 | 8% | 6.50% |
| LINKUSDT | 17,000 | 2.0% | 1.0% | 50,000 | 4% | 2.50% | 80,000 | 8% | 6.50% |
| LDOUSDT | 50,000 | 2.0% | 1.0% | 140,000 | 4% | 2.50% | 230,000 | 8% | 6.50% |
| FETUSDT | 150,000 | 2.0% | 1.0% | 750,000 |
4% | 2.50% | 1,500,000 | 8% | 6.50% |
| CRVUSDT | 130,000 | 2.0% | 1.0% | 400,000 | 4% | 2.50% | 700,000 | 8% | 6.50% |
| GALAUSDT | 4,000,000 | 2.0% | 1.0% | 20,000,000 | 4% | 2.50% | 40,000,000 | 8% | 6.50% |
| AAVEUSDT | 2,000 | 2.0% | 1.0% | 6,000 | 4% | 2.50% | 10,000 | 8% | 6.50% |
| INJUSDT | 2,500 | 2.0% | 1.0% | 5,000 | 4% | 2.50% | 25,000 | 8% | 6.50% |
| OPUSDT | 70,000 | 2.0% | 1.0% | 220,000 | 4% | 2.50% | 400,000 | 8% | 6.50% |
| ORDIUSDT | 1,200 | 2.0% | 1.0% | 6,000 | 4% | 2.50% | 12,000 | 8% | 6.50% |
| WLDUSDT | 35,000 | 2.0% | 1.0% | 175,000 | 4% | 2.50% | 350,000 | 8% | 6.50% |
| UNIUSDT | 22,000 | 2.0% | 1.0% | 70,000 | 4% | 2.50% | 110,000 | 8% | 6.50% |
| APTUSDT | 13,000 | 2.0% | 1.0% | 40,000 | 4% | 2.50% | 60,000 | 8% | 6.50% |
| AXDUSDT | 16,000 | 2.0% | 1.0% | 50,000 | 4% | 2.50% | 80,000 | 8% | 6.50% |
| ATOMUSDT | 10,000 | 2.0% | 1.0% | 31,000 | 4% | 2.50% | 50,000 | 8% | 6.50% |
| TIAUSDT | 5,000 | 2.0% | 1.0% | 25,000 | 4% | 2.50% | 50,000 |
8% | 6.50% |
| TRBUSDT | 600 | 2.0% | 1.0% | 30,000 |
4% | 2.50% | 60,000 |
8% | 6.50% |
| GRTUSDT | 900,000 | 2.0% | 1.0% | 2,600,000 |
4% | 2.50% | 4,000,000 |
8% | 6.50% |
| BCHUSDT | 900 | 2.0% | 1.0% | 2,700 |
4% | 2.50% | 4,000 |
8% | 6.50% |
| SEIUSDT | 125,000 | 2.0% | 1.0% | 625,000 | 4% | 2.50% | 1,250,000 |
8% | 6.50% |
| SANDUSDT | 210,000 | 2.0% | 1.0% | 600,000 |
4% | 2.50% | 1,000,000 |
8% | 6.50% |
| ARBUSDT | 500,000 | 2.0% | 1.0% | 2,500,000 |
4% | 2.50% | 5,000,000 |
8% | 6.50% |
How to Change Risk Limit on Coinflare?
Coinflare users can utilize the asset overview trading preference panel to adjust their risk limit. The default setting for risk limit on Coinflare is always set to the lowest value. Each perpetual contract has its own risk limit, which you will need to adjust individually.
Here's how you can change/adjust the risk limit for a perpetual contract.
- Go to our derivatives platform, select the perpetual contract you want to change the risk limit for, go to the Asset Overview Panel and find the section for risk limit.
- Inside the risk limit section, you will see two options for risk limit. First option to adjust risk limit for long order, second option to adjust risk limit for short orders. Click on the "pencil" icon for the type of risk limit (long/short) you want to adjust.
- When you click the "pencil" icon, a popup will appear. From the popup, you will have the option to select from different tiers of risk limit available for that contract pair.
- After selecting your desired risk limit, click the submit button. The update values for risk limit will reflect in the asset overview panel.
Please note that when you adjust the risk limit for a contract, the maximum applicable leverage will also update for that contract.
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