Users are required to choose a risk limit. This measure is used to minimize users’ position risk. When high-tier risk limit user’s margin rate is insufficient, the user will be downgraded to lower tier (close out partial position and lower maintenance margin rate).
As users amass larger positions, they pose a risk to others on the exchange who may experience a deleveraging event if the position cannot be fully liquidated.
If the users position size is higher than the risk limit, then his/her order will fail. User can adjust the risk limit in the trading interface; however, if user’s margin does not meet the requirement for that level, the adjustment will fail.
BHEX’s current risk limit is as follows:
BTC
|
Risk Limit |
Maintenance Margin |
Initial Margin |
Maximum Leverage Allowed |
|
1000000 |
0.5% |
1% |
100 |
|
2000000 |
1% |
2% |
50 |
|
3000000 |
1.5% |
3% |
33.33 |
|
4000000 |
2% |
4% |
25 |
ETH
|
Risk Limit |
Maintenance Margin |
Initial Margin |
Maximum Leverage Allowed |
|
100000 |
1% |
2% |
50 |
|
300000 |
1.5% |
2.5% |
40 |
|
500000 |
2 % |
3% |
33.33 |
|
700000 |
2.5% |
4% |
25 |
EOS
|
Risk Limit |
Maintenance Margin |
Initial Margin |
Maximum Leverage Allowed |
|
100000 |
1% |
2% |
50 |
|
300000 |
1.5% |
2.5% |
40 |
|
500000 |
2 % |
3% |
33.33 |
|
700000 |
2.5% |
4% |
25 |
LTC
|
Risk Limit |
Maintenance Margin |
Initial Margin |
Maximum Leverage Allowed |
|
100000 |
1% |
2% |
50 |
|
300000 |
1.5% |
2.5% |
40 |
|
500000 |
2 % |
3% |
33.33 |
|
700000 |
2.5% |
4% |
25 |
XRP
|
Risk Limit |
Maintenance Margin |
Initial Margin |
Maximum Leverage Allowed |
|
100000 |
1% |
2% |
50 |
|
300000 |
1.5% |
2.5% |
40 |
|
500000 |
2 % |
3% |
33.33 |
|
700000 |
2.5% |
4% |
25 |
BCH
|
Risk Limit |
Maintenance Margin |
Initial Margin |
Maximum Leverage Allowed |
|
100000 |
1% |
2% |
50 |
|
300000 |
1.5% |
2.5% |
40 |
|
500000 |
2 % |
3% |
33.33 |
|
700000 |
2.5% |
4% |
25 |