Perpetual/Quick Contracts: Cross Margin Mode Guide

Cross Margin Mode means that all funds in your account are used as margin for positions. To control risk, it is recommended that users enter positions with stop-loss orders.

Account Fund Indicators and Calculation Formulas

Available Margin = Account Balance − Used Margin + Unrealized P&L − Fees − Overnight Fee

• Available Margin: Margin that can still be used to open new positions

• Used Margin: Total margin used for currently open positions

• Unrealized P&L: Floating profit or loss not yet realized

Note: Unrealized P&L directly affects Available Margin. When unrealized P&L increases, Available Margin increases; when unrealized P&L decreases, Available Margin decreases.

Risk Rate = (Account Balance + (Unrealized P&L − Fees − Overnight Fee)) ÷ Used Margin × 100%

Note: Higher risk rate means lower risk; lower risk rate means higher risk. For more details, refer to Forced Liquidation Explanation.

• Account Balance: Current balance, including initial deposit, realized profits/losses, and trading costs

• Net Equity = Account Balance + (Unrealized P&L − Fees − Overnight Fee)

  • Represents the current available equity in the account

Forced Liquidation Explanation

In Cross Margin Mode, floating losses (due to high market volatility) can exceed the initial margin used to open positions. When margin is insufficient, the system uses the Risk Rate as the trigger for forced liquidation.

• Risk Rate is a key indicator of account risk.

• When Risk Rate falls below 10%, the system will forcibly close all positions.

• Account funds may lose more than the margin used for positions; users must manage risk and maintain reasonable position sizes.

Forced liquidation occurs at the latest market price at the time of triggering. Any surplus from liquidation will be added to the Risk Reserve Fund, which offsets negative balances. Maximum loss under forced liquidation in Cross Margin Mode is 100% of contract account funds.

Risk Reserve Fund

The Risk Reserve Fund is established by the exchange to ensure smooth operation of contract trading and to cover potential losses caused by unforeseen platform risks.

Switching Between Cross Margin and Isolated Margin

1. Scenario 1: When no positions are held, users can freely switch between Cross Margin and Isolated Margin modes.

2. Scenario 2: When holding positions in Cross Margin Mode, users cannot switch to Isolated Margin Mode until all Cross Margin positions are closed.

3. Scenario 3: When holding positions in Isolated Margin Mode, users cannot switch to Cross Margin Mode until all Isolated Margin positions are closed.

Conditional Orders in Cross Margin Mode

1. In Cross Margin Mode, placing a conditional order does not freeze account balance in advance. Margin is only frozen when the conditional order is triggered, reducing available margin. This allows greater capital efficiency and flexibility for pre-deploying multiple strategies.

2. If available margin is insufficient when a conditional order is triggered, the order will not execute. The system will automatically cancel it and display “Insufficient Margin, Order Cancelled”. Other untriggered conditional orders remain unaffected.

Note: Users cannot switch margin modes while holding conditional orders in Isolated Margin Mode, and vice versa.