Contract Trading · How Can BKEX Be Responsible To Traders When Faced With The Rapidly Changing Cryptocurrency Market?
BKEX is a global digital asset financial service platform, focusing on the mining and absorption of high-quality assets, an innovative international station of digital assets for global users, providing trading and investment services among various digital assets.
BKEX forced liquidation mechanism refers to when a trader’s margin is insufficient and not replenished within the specified time, or when a trader’s position exceeds the specified limit, the margin cannot meet the requirements for maintenance margin of the position, BKEX liquidates the trader’s corresponding position in order to prevent further expansion of the risk.
Different from many platforms, BKEX adopts the hierarchical forced liquidation mechanism. When the user’s position reaches the liquidation line, it will not lose all the funds of the position because of the liquidation. BKEX gradually closes the positions of users, so as to control risks and protect the interests of users as much as possible. In addition, compared with the one-time liquidation mechanism, BKEX hierarchical liquidation mechanism can also effectively prevent the impact of the liquidation of large positions on the market and lead to wearing loss.
Example of BKEX hierarchical liquidation mechanism:
Take the BTC contract as an example: the current BTC price is 10,000 USDT, John opens a BTC contract with 100 times leverage, the opening margin is 100 USDT, and the maintenance margin ratio is 0.5%.
On most platforms:
When the maintenance margin of John’s position is less than 50U, all positions will be liquidated, and the trader will lose all funds in the position.
On BKEX platform:
When the maintenance margin of John’s position is less than 50U, the number of the contract will be reduced to 0.5 BTC. If the position is liquidated again, the number of the contract will be reduced to 0.25 BTC. When the number of positions is less than BTC minimum liquidation number, the position will be completely liquidated. Therefore, BKEX hierarchical liquidation mechanism greatly reduce losses and improve the trading experience for users.
In order to further protect the user’s asset security and trading experience, BKEX established BKEX Sunshine Fund earlier, which is specially used to protect the user’s asset security fund. BKEX Sunshine Fund is supervised by a third-party authority settled in BKEX. If there are major abnormalities on the platform, the platform can apply to the settled third-party authority for investigation. After verifying the situation, users will be compensated, thus creating a green ecosystem in the cryptocurrency market.
For contract trading, in order to bring a better trading experience and more secure and reliable trading guarantee to users, BKEX officially launched the “abnormal price protection plan”, which is mainly a compensation plan for users who trade at abnormal price due to extreme market. The loss of price difference caused by abnormal price will be compensated by BKEX platform.
The index price of BKEX platform adopts the spot index of Huobi, OKEx and Binance as the index price of the platform. The index price of BKEX is the overall price level of the market and will not be affected by the price fluctuation of a single exchange. Due to the influence of extreme market, the price difference between the last price of BKEX and the index price is greater than 2%, which is an abnormal price. If there is an abnormal price on BKEX and users trade at an abnormal price, BKEX will compensate for the loss of the price difference caused by the abnormal price.
