To maintain a robust trading environment, significant updates have been implemented for the Futures market. These changes are designed to enhance market stability, improve fairness for all participants, and minimize systemic risk. This guide explains the key adjustments to liquidation modes and fee structures, helping you navigate these updates effectively.
Summary of Key Updates
Starting immediately, traders can now switch from the old (Full Liquidation) mode to the new (Partial Liquidation) mode, even with open positions, provided no open orders exist. Furthermore, the maximum position limits for the old mode have been reduced.
Beginning June 17, 2019, trading fees for the old (Full Liquidation) mode will be increased. These measures collectively encourage adoption of the more efficient Partial Liquidation system.
Why These Changes Were Implemented
These adjustments were introduced to minimize risk for both individual traders and the overall market. The new Partial Liquidation mode has proven highly effective in achieving this goal. Since its launch, it has contributed to a perfect record of zero clawbacks in the Perpetual Swap market, enhancing stability and fairness for everyone. The changes ensure a more resilient trading ecosystem.
Detailed Breakdown of Maximum Position Limits
The maximum position limits for the old (Full Liquidation) mode have been updated across different margin and leverage settings.
Cross-Margin Mode – 10x Leverage
Your maximum allowable position size fluctuates based on your margin ratio. Specific tiered limits are now in place to manage risk more effectively.
Cross-Margin Mode – 20x Leverage
Similar to the 10x leverage tier, the 20x leverage tier under cross-margin also operates with a revised tiered limit structure, correlating directly with your margin ratio.
Example: In cross-margin mode with 10x leverage, if your margin ratio fluctuates between 100-200%, the maximum number of BTC contracts you can open is 100,000. This quantity includes all open weekly, bi-weekly, and quarterly contracts on the books. If your margin ratio is 800% or higher, the maximum limit increases to 1,000,000 contracts.
Fixed-Margin Mode – 10x Leverage
This mode features a simplified, fixed maximum position limit, independent of fluctuating margin ratios.
Fixed-Margin Mode – 20x Leverage
The fixed-margin mode with 20x leverage also operates with a set maximum cap on position size.
Example: In fixed-margin mode, if you select 10x leverage, the maximum number of BTC contracts you can open is a fixed amount of 100,000.
Increased Trading Fees for Old Liquidation Mode
A new fee schedule for the old (Full Liquidation) mode will take effect on June 17, 2019, at 06:00 (CEST, UTC +2).
Generally, if you choose to trade futures contracts using the old liquidation mode, your trading fee will see an immediate increase of 20%, as outlined in the updated fee table.
Furthermore, starting from June 17, fees for the old liquidation mode will incrementally increase by an additional 20% each week. This scheduled rise will continue until the fees for the old mode are exactly double those of the new Partial Liquidation mode.
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Recommendations for Traders
We strongly advise all traders to switch to the new Partial Liquidation mode for a superior trading experience. This mode offers significant advantages:
- Reduced Liquidation Risk: Partial liquidations help preserve more of your capital during volatile market moves.
- Lower Trading Fees: Avoid the scheduled weekly fee increases associated with the old mode.
- Enhanced Market Stability: Contribute to a healthier overall trading environment with a proven record of preventing clawbacks.
This transition is designed to better protect the interests of every trader on the platform. We are committed to providing you with the best possible service at all times.
Frequently Asked Questions
What is the main difference between Full and Partial Liquidation modes?
Full Liquidation closes your entire position once a liquidation event is triggered, which can lead to a total loss of the margin for that position. Partial Liquidation only closes the minimal necessary portion of your position to bring your margin ratio back to a safe level, helping to preserve your remaining capital.
Can I switch between liquidation modes at any time?
You can switch from the old Full Liquidation mode to the new Partial Liquidation mode at any time, provided you do not have any open orders. The switch can be made even if you have open positions.
Why are fees increasing for the old liquidation mode?
The fee increase is an incentive for traders to migrate to the more advanced and safer Partial Liquidation system. This helps improve overall market health and stability by reducing collective risk.
Will my existing positions be affected if I don’t switch modes?
Your existing positions will not be automatically liquidated. However, they will remain subject to the rules of your current liquidation mode. This means if you stay in the old mode, you will face the new, lower position limits and the progressively higher trading fees on any new trades.
How do I change my liquidation mode setting?
The process is typically handled within your account's risk settings or futures trading dashboard on the exchange's platform. Look for a "Liquidation Mode" or similar section to select your preference.
Is the Partial Liquidation mode available for all futures contracts?
The availability of the Partial Liquidation mode is generally standard for perpetual and dated futures contracts, but it is always best to confirm within the platform for any specific contract you wish to trade.