Grid Trading Product Information Announcement

Dear users:
 

To help you understand how SUNX grid trading works, its parameter settings, and the associated risks, we provide the following product information. Please read it carefully before creating a strategy and set the strategy parameters reasonably based on your own market assessment, trading experience, and risk tolerance.

I. What Is Futures Grid Trading?

Grid trading is a trading strategy that automatically submits futures buy and sell orders according to a preset price range and grid rules.

After users set parameters such as the price range, number of grids, margin amount, and leverage, the system divides the range into grids according to the strategy rules and submits corresponding orders when conditions are met, seeking to capture price differences from price fluctuations within the range.

Futures grid trading can reduce the need to place repeated orders manually, but it cannot eliminate market risk. Whether a strategy is profitable depends on actual price movements, order execution, unrealised profit and loss on positions, and related trading costs.

The supported trading pairs, strategy types, and available features are subject to the actual display on the SUNX grid trading page.

II. Grid Strategy Types and Applicable Scenarios

Futures grid trading is primarily used to address range-bound market conditions within a certain price range. Grids in different directions have different position biases. Users should select a strategy type supported on the page based on their own assessment.

1. Long Grid

This strategy primarily uses opening long and closing long trades. It buys to open long positions at lower grid prices and sells to close long positions at corresponding higher grid prices.

It is suitable when users believe that the market may fluctuate upwards. If the price continues to fall, long positions may incur substantial unrealised losses and may even trigger forced liquidation.

2. Short Grid

This strategy primarily uses opening short and closing short trades. It sells to open short positions at higher grid prices and buys to close short positions at corresponding lower grid prices.

It is suitable when users believe that the market may fluctuate downwards. If the price continues to rise, short positions may incur substantial unrealised losses and may even trigger forced liquidation.

3. Neutral Grid

Based on the strategy's initial price and boundary rules, this strategy arranges short trades at higher prices and long trades at lower prices, seeking to capture price differences from fluctuations in both directions.

It is suitable when users believe that the market may fluctuate in both directions within a certain range. A neutral grid does not mean that there is no directional risk. If the price continues to move in a single direction, losses or forced liquidation may still occur.

III. Strategy Creation and Management Process

1. Access the Grid Trading Page

Log in to your SUNX account, access the strategy trading or grid trading entry provided by the platform, and select the futures trading pair for which you want to run the strategy.

Before creating a strategy, review the contract parameters, fee schedule, and strategy rules for the relevant trading pair.

2. Set Strategy Parameters

Set parameters such as the grid direction, price range, number of grids, grid mode, and margin amount according to the options provided on the trading page.

If the page supports features such as trigger prices and take-profit or stop-loss settings, you may configure them according to your trading plan.
 
3. Verify the Information and Create the Strategy

Before submitting, verify the trading pair, strategy direction, upper and lower price limits, leverage, amount invested, and risk disclosures. Create the strategy after confirming the information.

The transfer of funds, margin usage, and initial position-opening method at the time of creation are subject to the page prompts and the relevant strategy rules.

4. View and Manage the Strategy

After creating a strategy, you can view its running status, current orders, positions, returns, and margin information on the relevant strategy management page.
 

IV. Key Parameter Information

1. Minimum and Maximum Prices

These determine the operating range of the grid strategy.

Once the market price moves outside the range, whether the strategy pauses the placement of new orders and how existing orders and positions are handled are subject to the relevant strategy rules. Moving outside the range does not mean that existing positions will be closed automatically.

2. Number of Grids

This indicates the number of smaller intervals into which the price range is divided.

For example, if the minimum price is 1,600 USDT, the maximum price is 1,800 USDT, and the range is divided into 5 grids using the arithmetic mode, the price difference for each grid is:

(1,800 − 1,600) ÷ 5 = 40 USDT

The corresponding grid prices are:

1,600, 1,640, 1,680, 1,720, 1,760, and 1,800 USDT.

The greater the number of grids, the smaller the price difference for each grid is generally. Please consider trading fees, minimum order requirements, and the amount invested when selecting an appropriate number of grids.

3. Arithmetic and Geometric Grids

• Arithmetic grid: The difference between the prices of each pair of adjacent grid levels is equal.
• Geometric grid: The ratio between the prices of each pair of adjacent grid levels is equal.

The specific available modes are subject to the trading page.

4. Leverage Multiple

This indicates the leverage used when the strategy conducts futures trading.

Leverage magnifies both profits and losses. The available leverage range and actual limits are subject to the relevant trading pair and strategy page.

5. Margin Amount

This indicates the margin allocated by the user to the strategy. The margin amount invested does not equal the actual position value. The specific order size also depends on leverage, the number of grids, and the system's allocation rules.

Please reserve a reasonable amount of funds to avoid insufficient margin caused by fee deductions or position losses.

6. Trigger Price

If this feature is supported, the trigger price is used to set the strategy activation condition. Once the condition is met, the system activates the strategy according to the relevant rules.

A trigger does not mean that all orders will be executed immediately. Subsequent execution remains subject to factors such as margin, trading restrictions, and market liquidity.

7. Take-Profit and Stop-Loss Prices

If this feature is supported, it can be used to set conditions for exiting the strategy. Once the conditions are met, the system stops the strategy and handles the relevant orders and positions according to the applicable rules.

Please verify the trigger basis and execution method. Take-profit and stop-loss settings cannot guarantee execution at the set price or completely prevent losses.

8. Estimated Liquidation Price

This is used as a reference for the liquidation risk of the strategy under specific position and margin conditions.

The estimate may change based on actual executions, position changes, margin adjustments, and fee deductions. It should not be regarded as a fixed and unchanging risk boundary.

V. Strategy Operation Example

The following example is provided solely to explain the logic of grid trading. It does not constitute investment advice or represent actual returns.

Example Parameters

Trading pair: ETH/USDT futures
Price range: 1,600–1,800 USDT
Number of grids: 5
Grid mode: Arithmetic
Leverage: 2x
Margin amount: 5,000 USDT
Price when the strategy is created: 1,672 USDT

The corresponding grid prices are 1,600, 1,640, 1,680, 1,720, 1,760, and 1,800 USDT. The specific initial order distribution, position-opening quantity, and fund allocation are subject to the strategy rules.

1. Long Grid Example

Assume that the strategy's buy-to-open-long order at 1,640 USDT is executed. The system then places a sell-to-close-long order at the corresponding price above it, 1,680 USDT, according to the rules.

If the close-long order is subsequently executed, one buy-to-open-long and sell-to-close-long transaction is completed. The actual result must be calculated after deducting trading fees and applicable funding fees and other costs.

2. Short Grid Example

Assume that the strategy's sell-to-open-short order at 1,720 USDT is executed. The system then places a buy-to-close-short order at the corresponding price below it, 1,680 USDT, according to the rules.

If the close-short order is subsequently executed, one sell-to-open-short and buy-to-close-short transaction is completed. The actual result must likewise take relevant costs into account.

3. Neutral Grid Example

Based on the initial price and boundary rules, the strategy arranges long trades at lower prices and short trades at higher prices, and places subsequent orders according to the relevant grid logic after execution.

The specific boundary position and order arrangement are subject to the actual display of the strategy.

VI. Returns and Fees

The price-difference returns generated by completed grid trades do not equal the strategy's overall profit.

When evaluating strategy performance, you should review realised profit and loss, unrealised profit and loss, trading fees, funding fees, and other applicable costs together, and note whether the metrics displayed on the page already include the relevant fees.

Even if grid returns are shown as positive, existing positions may still incur unrealised losses, causing the strategy to incur an overall loss. If withdrawing returns reduces the strategy's available margin, it may also increase position risk. Please confirm this before proceeding.

VII. Risk Disclosures and Precautions

1. Risk of One-Way Market Movements

A grid strategy cannot guarantee profits under all market conditions. When the price continues to rise or fall in one direction, the strategy may accumulate unfavourable positions, resulting in unrealised losses or forced liquidation.

2. Risk of Moving Outside the Range

Once the market price moves outside the preset range, the strategy may be unable to continue operating according to the original plan, while existing positions may still be exposed to risk. Please continue to monitor the price, positions, and margin status.

3. Execution and Liquidity Risks

The price reaching a grid level does not mean that an order will necessarily be executed. Factors such as market liquidity, matching order, and order restrictions may result in partial execution, non-execution, or slippage.

4. Parameter and Trading Cost Risks

When grids are set too close together, the price difference per trade may be insufficient to cover trading costs. When grids are set too far apart, execution frequency may decrease. Please configure the parameters reasonably based on market conditions, capital size, and fees.

5. Risk of Insufficient Margin

Position losses or fee deductions may result in insufficient strategy margin, affecting subsequent order placement and potentially triggering strategy suspension or forced liquidation. Adding margin also cannot guarantee the avoidance of losses.

6. Handling After Stopping the Strategy

Stopping a strategy does not necessarily mean that positions have been closed. Before proceeding, confirm whether the stopping method includes order cancellation, position closing, or retaining positions. After proceeding, verify the actual order and position status.

7. Risks from Exceptional Events

Events such as futures delisting, trading suspension, network abnormalities, or system failures may affect strategy operation. The relevant handling is subject to platform announcements and the applicable rules.

This announcement is intended to introduce the general mechanism of futures grid trading and does not constitute investment advice or a promise of returns. Specific features, supported trading pairs, parameter limits, and execution rules are subject to the actual SUNX trading page, relevant agreements, and official rules.

Please fully understand the strategy mechanism, reasonably control leverage and the amount invested, continuously monitor the operating status, and participate in trading prudently.
 

Thank you for your support and trust in SUNX.

SUNX Global Operations Team