Risk assessment 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 includes a detailed account risk description and disposal advice.

2, under what circumstances will face the risk of forced position squaring

With your leverage

• 1. When the remaining liquidity in your stock account is equal to 0;
• 2. When the remaining liquidity in your stock account is equal to 0;

3. How to avoid forced position squaring

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

4. If forced to position squaring, will only part of the position be closed?

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.
Rule of forced liquidation:

• In order of forced liquidation,
• positions with high leverage and low Maintenance Margin ratio are given priority for position squaring.
• If the leverage is the same, stocks with low yield are given priority for position squaring.
• If the margin/total assets of the product is ≤ 25%, the entire position will be closed.
• If the margin/total assets of the product are ≤ 50%, half of the position will be closed.
• If the margin/total assets of the product are ≤ 75%, half of the position will be closed.
• If the margin/total assets of the product are ≤ 100%, 1/4 of the position will be closed.
• After each position squaring, the remaining liquidity of the account will be checked. If it is greater than 0 If it is not strong, it will not be liquidated. If it is not greater than, it will continue to be liquidated.

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

• If there is a hedging order during normal times, cancel the order with it and then liquidate.
• If the liquidation occurs before or after the market, and orders cannot be placed at the market price, sell at a price that is 1% lower than the latest price or buy at a price that is 1% higher than the latest price to liquidate. After the transaction, cancel the unexecuted orders, check the remaining liquidity of the account, and if it is greater than 0, it will not be liquidated. If it is not greater than, it will continue to liquidate.