What Are Futures Risk Limits?
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1. What Are Futures Risk Limits?
Futures risk limits refer to a set of measures established to reduce potential trading risks and losses. In a trading environment with high price volatility, traders who use high leverage to hold large positions may face significant risks of liquidation losses. If the insurance fund is depleted, an automatic deleveraging system may be triggered, posing additional risks to other traders.
Therefore, MEXC employs a risk limit mechanism for all trading accounts, using a tiered margin system for risk control, where the leverage multiplier depends on the size of the position; the larger the position, the lower the available leverage. Users can adjust the leverage multiplier themselves, and the initial margin rate is calculated based on the leverage multiplier adjusted by the user.
2. How to View the Risk Limit Details for Different Futures on MEXC
2.1 Website
On the MEXC official website, click on [Futures] at the top to enter the futures trading page. Then, select [Risk Limit] and click [View all futures risk limits] to access the page detailing futures risk limits.
On the futures risk limit page, select the desired futures token name to view the corresponding risk limit information. The image below shows the risk limit tiers for BTC USDT-M perpetual futures.
2.2 App
1) On the MEXC App's homepage, tap on [Futures].
2) On the futures trading page, tap on the settings icon […] in the upper right corner.
3) Select [Futures Info].
4) Tap on [Risk Limit] and select the desired futures token name to view the corresponding risk limit information. The image below shows the risk limit tiers for BTC USDT perpetual futures.
3. Factors Affecting Risk Limit Tiers
The image below displays the risk limit tiers for ZK USDT perpetual futures:
3.1 Leverage Multiplier Determines the User's Position Limit
The leverage multiplier determines the position limit; the higher the leverage, the smaller the maximum position that can be opened by the user. As shown in the image above, there are five risk limit tiers for ZK USDT perpetual futures, with different leverage multipliers corresponding to different position sizes. When the user adjusts the leverage to 75x, the position limit is approximately 18,262 USDT. When the leverage is adjusted to 30x, the position limit changes to 91,310 USDT.
3.2 Position Size Corresponds to Different Tiers of Maintenance Margin Rates
The maintenance margin rate is calculated based on the size of the user's position, not the leverage multiplier adjusted by the user. This means that the maintenance margin rate is not affected by the leverage multiplier.
As shown in the image of the ZK USDT perpetual futures risk limit tiers, the larger the position size, the higher the maintenance margin rate. If your position size ranges from 0 USDT to 18,262 USDT, the corresponding maintenance margin rate is 0.7%. If your position size increases to fall within the range of 18,262 USDT to 36,524 USDT, the corresponding maintenance margin rate is 1.2%.
Maintenance margin directly affects the forced liquidation price. When the margin balance of a position falls below the maintenance margin, the position will be liquidated or reduced. Therefore, it is strongly recommended that users pay attention to their margin balance level to avoid forced liquidation.
Please note that in cases of abnormal price fluctuations and extreme market conditions, the system will take additional measures to maintain market stability, including but not limited to: adjusting the maximum leverage, adjusting position limits for different tiers, and adjusting the maintenance margin ratios for different tiers.
Disclaimer: This information does not provide advice on investment, taxation, legal, financial, accounting, consultation, or any other related services, nor does it constitute advice to purchase, sell, or hold any assets. MEXC Learn provides information for reference purposes only and does not constitute investment advice. Please ensure you fully understand the risks involved and exercise caution when investing. The platform is not responsible for users' investment decisions.