To enhance risk control across its platform, the exchange has established a Total Borrowing Limit for each staked asset (referred to as the "Platform Total Limit"). This limit is determined based on a comprehensive evaluation of asset liquidity, market depth, overall platform staking volume, and borrowing demand within the trading account system.
Scenarios Unaffected by the Limit
When the total borrowed amount of a specific asset across the platform reaches its Total Limit, the following situations remain unaffected:
- If your trading account does not hold that particular asset, your activities are not impacted.
If your account does hold the asset, the following operations and transfers proceed as normal:
- Spot Mode (Borrowing Not Enabled): Deposits, withdrawals, and trading.
- Spot Mode (Borrowing Enabled): Deposits and spot trading, provided no borrowed funds are currently using the asset as margin.
- Futures Mode: Deposits, withdrawals, and trading in spot, delivery futures, perpetual swaps, and options.
- Advanced Modes (Cross-Margin and Portfolio Margin): Deposits and spot trading, provided no margin is currently occupied by derivative positions or outstanding loans.
*For details on each asset's discount rate, please refer to the official help documentation.
Scenarios Affected by the Limit
When a specific asset's total borrowed amount hits its Platform Total Limit and your account holds that asset, the following operations will be affected:
Spot Mode (Borrowing Enabled):
- The asset will not count toward your Available Balance for margin if you have an active loan. If your available balance is insufficient after placing an order, the trade will not execute.
- You cannot use the asset as margin to borrow more funds for spot trading.
- For withdrawals, the asset is excluded from your Available Balance. This reduces your maximum withdrawable amount.
- The asset still counts toward your Effective Equity and will not impact your Maintenance Margin Ratio or trigger liquidation solely due to the platform limit being reached.
Futures Mode Leveraged Trading (Cross/Isolated Margin):
- You cannot open new positions in leveraged trading pairs that involve the affected asset. Existing positions will continue to calculate P&L and Maintenance Margin normally but can only be reduced using "Close-Only" orders.
- Trading pairs unrelated to the affected asset can be traded normally.
Advanced Modes (Cross-Margin and Portfolio Margin):
- If your account has margin occupied by derivatives or loans, the asset is excluded from your Available Balance for spot trading. Trades will fail if they cause insufficient available balance.
- The asset cannot be used as margin to open new leveraged, futures, perpetual, or options positions (cross or isolated).
- For isolated margin leveraged trading: You cannot open new positions in pairs related to the affected asset. Existing positions can only be reduced with "Close-Only" orders. Pairs unrelated to the asset trade normally.
- For withdrawals, the asset is excluded from your Available Balance, reducing your maximum withdrawable amount.
- The asset still counts toward your Effective Equity and will not impact your Maintenance Margin Ratio or trigger liquidation due to the platform limit.
Early Warnings Before the Limit is Reached
When the total borrowed amount for an asset is approaching its Platform Total Limit, the system will proactively send an "Automatic Asset Conversion Imminent" notification. This alert is sent via email and internal message to users who have staked that asset and have a relatively large borrowing volume.
Automatic Asset Conversion Upon Exceeding the Limit
If the total borrowed amount for an asset exceeds the Platform Total Limit by a certain threshold, the platform will initiate automatic asset conversion for users with large borrowings staked in that asset to mitigate risk. Measures may include:
- Ranking users based on their borrowed amount of the asset and processing from the largest borrower downward.
- Canceling any open orders that are using the affected asset as margin.
- Selling the affected asset from the user's account.
- Liquidating leveraged positions associated with the affected asset.
- Canceling all open orders related to the positions being liquidated.
The specific actions vary depending on the user's account mode. To minimize market impact, the system will execute sales in batches and reserves the right to adjust batch sizes based on market conditions.
Users will receive an "Automatic Asset Conversion Executed" notification via email and internal message once the process begins. This automatic conversion process will terminate immediately if the total borrowed amount for the asset falls back below the Platform Total Limit.
For a deeper understanding of how these mechanisms protect your portfolio and the wider market, you can explore advanced risk management strategies.
Frequently Asked Questions
What is the Platform Total Borrowing Limit?
It is a risk management mechanism that sets a maximum cap on the total amount of a specific asset that can be borrowed across the entire exchange platform. This limit is based on factors like liquidity and overall staking volume to ensure system stability.
Will I be notified before my assets are automatically converted?
Yes. The system sends an "Automatic Asset Conversion Imminent" warning via email and internal message to affected users whose staked asset is nearing the platform-wide borrowing limit, giving you time to potentially manage your positions.
Does hitting the platform limit mean my existing positions will be liquidated?
Not necessarily. The asset still counts toward your Effective Equity for maintenance margin. Liquidation only occurs if your margin ratio itself becomes critical. However, you may be unable to open new positions that require that asset as margin, and automatic conversion could eventually lead to the selling of assets or position liquidation if the limit is exceeded.
Can I still withdraw the affected asset?
Yes, but the maximum amount you can withdraw may be reduced. This is because the asset is excluded from your Available Balance calculation for margin purposes when the platform limit is reached, which in turn affects your withdrawable balance.
How does automatic conversion work?
The system processes users from largest to smallest borrower. It may cancel orders, sell the staked asset, and liquidate related leveraged positions in batches to reduce the total borrowed amount back below the cap, all while sending notifications to the user.