What are the rules for forced liquidation of stocks?

The condition for triggering forced liquidation is that the net assets of the account are less than the Maintenance Margin requirement of the position. The rules for mandatory position squaring are as follows:

1.Priority position squaring order:

• Prioritize closing positions with lower Maintenance Margin ratios (i.e. higher leverage).
• Prioritize selling stocks with lower yields when the leverage is the same.

2.Position squaring ratio:

• If the margin/total assets ratio of the position squaring variety is ≤ 25%, the entire position will be liquidated.
• If 25% < position squaring variety margin/total assets ≤ 50%, 1/2 of the positioning will be offset.
• 50% < position squaring variety margin/total assets ≤ 75%, then 1/3 of the positioning will be cancelled.
• If the margin of the squaring variety is less than 75% and the total assets are less than or equal to 100%, then 1/4 of the
  positioning will be cancelled.

3.Check after position squaring:

• After each position squaring, the system will check the remaining liquidity of the account. If the liquidity is greater than 0, it will not continue to liquidate; if it is not greater than 0, it will continue to liquidate.

4.Special case handling:

• If there is a hedging order during normal times, the hedging order will be cancelled first, and then forced liquidation will be carried out.
• If the forced liquidation occurs before or after the market, and it is impossible to place an order at the market price, the forced liquidation will be carried out according to the latest price adjustment of 1%. After the transaction is completed, the uncompleted orders will be cancelled and the account liquidity will be checked again.

Through the above rules, the system will ensure that the impact on the account is minimized when forcing position squaring, while ensuring that the Maintenance Margin requirements are met.