A risk limit is a risk management mechanism used to limit the risk of a trader's position. In a trading environment with large price fluctuations, a single trader who uses high leverage to hold a large position may bring huge losses through the position. This system uses the concept of dynamic leverage, that is, the maximum leverage that can be used when trading will change according to the value of the position held by the trader: the greater the value of the position held, the lower the maximum leverage that can be used. At the same time, the larger the leverage is, the smaller the position that can be opened.
BTCUSD contract
Notional value of holdings (BTC)
maximum leverage
0~50
125x
50~100
100x
100~150
50x
150~250
20x
250~500
10x
500~1,000
5x
1,000~2,000
4x
2,000~5,000
3x
>5,000
1x
ETHUSD contract
Notional value of holdings (ETH)
maximum leverage
0~500
125x
500~2,500
100x
2,500~5,000
50x
5,000~10,000
20x
10,000~20,000
10x
20,000~30,000
5x
30,000~40,000
4x
40,000~50,000
3x
>50,000
1x