Risk Review and Prevention

1. How to know what risks my stock account currently has

Your stock account risk information will be disclosed on the stock account risk details page, which contains a detailed account risk description and disposal recommendations.

||

1. Under what circumstances will you face the risk of mandatory position squaring (completed)

With your leverage

1. When the remaining liquidity in your stock account is equal to 0.
2. When the remaining liquidity ratio of your stock account is equal to 0.
3. How to avoid being forced to position squaring (done)

When your remaining liquidity ratio is less than 20%, BiyaPay will remind you via email message. Please pay attention to market and asset conditions, and try to avoid remaining liquidity below 0 (i.e., your account net assets are lower than Maintenance Margin).

1. If forced to position squaring, will it only close part of the position? (done)

It depends on your account situation. The ultimate goal of mandatory position squaring is to make your account net assets greater than the Maintenance Margin requirement.

Strong flat rule:
The order of strong leveling prioritizes positions with high leverage and low Maintenance Margin ratio for position squaring.
If the leverage is the same, stocks with low returns will be preferred for position squaring

Position squaring variety margin/total assets ≤ 25%, then the full position,
25% < position squaring variety margin/total assets ≤ 50%, then level 1/2 position,
50% < position squaring variety margin/total assets ≤ 75%, then level 1/3 position,
75% < position squaring variety margin/total assets ≤ 100%, then level 1/4 position,
Check the remaining liquidity of the account after each position squaring. If it is greater than 0, it will not be forcibly leveled. If it is not greater than 0, it will continue to be forcibly leveled.

Yield rate = (latest price - cost price)/cost price

If there is a hedging order during normal times, cancel the hedging order with it and then force it to be settled.

If the forced liquidation occurs before or after the market and cannot be placed at the market price, then use the latest price to sell at a price that is 1% lower or the latest price to buy at a price that is 1% higher to force liquidation. After the transaction, cancel the outstanding orders and verify the remaining liquidity of the account. If it is greater than 0, it will not be forced liquidation. If it is not greater than 0, it will continue to be forced liquidation.