Explanation of Isolated Margin Mode and Liquidation Rules for Perpetual Contracts

Dear SUNX Users,

To help you understand how Isolated Margin mode works for perpetual contracts and the applicable liquidation rules, please review the following information.

1. Overview of Isolated Margin Mode

In Isolated Margin mode, margin and profit or loss are calculated independently for each order. When an individual order’s loss reaches the liquidation threshold, the system will liquidate the corresponding position.

The maximum loss on an individual order is limited to the margin allocated to that order and does not affect the margin of other orders.

2. Liquidation Rules

When a position’s loss reaches 90% of its margin, including trading fees and funding fees, the liquidation engine will take over the position and liquidate it.

The bankruptcy price is the price at which the position’s margin is fully depleted. If liquidation is executed at a price more favorable than the bankruptcy price and generates a surplus, that surplus will be transferred to the Insurance Fund to cover losses exceeding account collateral.

In Isolated Margin mode, the maximum loss from liquidation is 100% of the margin allocated to the position.

3. Insurance Fund

The Insurance Fund is established by SUNX to provide financial support for the normal operation of futures trading and to cover losses exceeding account collateral, as well as losses arising from unforeseen risks.

4. Risk Warning

Perpetual contract trading involves significant risk, and leverage can amplify both profits and losses. Please ensure that you understand Isolated Margin mode and the liquidation rules, manage your position sizes and leverage carefully, set a stop-loss when opening a position, and monitor your position risk closely.

Thank you for your support of SUNX!

SUNX Global Operations Team