Risk Limits and Risk Tiers

In futures trading, larger positions generally carry higher risk. To manage large-position exposure, the system uses a Risk Tier and Risk Limit mechanism to dynamically adjust margin requirements and leverage limits based on position size.

• Risk Tier: A risk level determined by position size. Higher tiers require higher margin and support lower maximum leverage.
• Risk Limit: The maximum position size allowed under the current risk tier. Once the limit is exceeded, the system will generally move the position to a higher risk tier automatically.

1. Tier Overview: Larger Positions Require Higher Risk Controls

Using the BTC/USDT Perpetual Futures contract as an example, the contract includes multiple risk tiers. As the risk tier increases, the maximum available leverage gradually decreases, while the initial margin requirement increases accordingly.

Only the first 8 tiers are shown above for reference. For complete tier details and rules for other contracts, please refer to the trading interface.

2. How Do Risk Tiers Change?

The system adjusts risk tiers dynamically based on position size without requiring manual action.

Tier Upgrade

When the position size exceeds the current tier limit, the system will generally move the position into a higher risk tier automatically and simultaneously:

• Increase the initial margin requirement
• Increase the maintenance margin requirement
• Reduce the maximum available leverage

If the account balance is insufficient to meet the new margin requirements, the position may face liquidation risk.

Tier Downgrade

When a user reduces their position and the position size falls back within a lower tier range, the system will generally adjust the position back to the corresponding lower risk tier, reducing margin requirements and restoring access to higher leverage.

Tier Change Illustration

3. How to View Current Tier Information

You can view the complete tier rules for a contract by navigating to:

“Contract Information” → “Position Tier”

Risk tier rules may vary across trading pairs. Please refer to the real-time information displayed on the trading interface.

Risk Warning

Large positions and high leverage can significantly increase liquidation risk. During extreme market conditions, rapid price fluctuations may cause margin ratios to change quickly. Please manage your positions and leverage responsibly based on your own risk tolerance.