FAQ

Notice on the Implementation of Position Limits to Support More Stable Trading
Published on: 2023/09/19 10:24Last Update: 2026/01/06 12:21

Dear Valued Users,

Greetings!

In line with our service philosophy of “Users First, Safety Above All,” and to help you manage trading risks more effectively while safeguarding your assets, the platform will soon introduce a position limit management system based on user risk levels.

We firmly believe that successful trading is not only about identifying opportunities, but also about maintaining a clear understanding of risk and managing it prudently. This adjustment is designed to build a more intelligent and considerate layer of risk protection, working alongside you toward a healthier and more sustainable trading journey.

 

I. Core Principle: Tailored Protection Based on Individual Risk Profiles

We recognize that users with different trading habits and risk preferences have varying risk management needs. To provide more targeted protection, the platform will introduce a User Risk Level Assessment System (L1–L5).

This system evaluates your risk profile by analyzing recent trading behavior, including but not limited to:

-Leverage usage

-Position concentration

-Account volatility

Based on this analysis, users are categorized from conservative to extremely aggressive risk profiles.

This is not a judgment—it is an understanding.
Our goal is to better understand your trading style so we can provide guidance and protective measures that are more suitable for you.

Risk Levels Overview

 

Risk Level

Profile Name

Composite Risk Score Range

L1

Conservative

1.0 – 1.5

L2

Steady

1.5 – 2.5

L3

Balanced

2.5 – 3.5

L4

Aggressive

3.5 – 4.5

L5

Extremely Aggressive

4.5 – 5.0

 

II. Risk Level Assessment: Your Trading Behavior Profile

Your risk level is dynamically assessed based on multiple dimensions, primarily including:

1. Definition and Calculation of Core Risk Indicators

a. Average Leverage
The average leverage used across all position openings over the past 30 days.

b. Position Utilization Rate
Average position value ÷ total account equity.
(This value may exceed 100%.)

c. Account Risk Ratio
(Position margin + frozen margin) ÷ total equity.

d. Historical Maximum Drawdown
(Peak equity − trough equity) ÷ peak equity.

e. Trading Frequency / Turnover Rate
Total trading volume ÷ average account equity.

 

2. Composite Risk Score Calculation: Thresholds, Scoring, and Weighting

a. Composite Risk Score Formula
Current indicator score × corresponding weight, summed across all indicators.

b. Dynamic Weight Adjustment
The platform may periodically adjust indicator weights based on overall futures trading behavior across all users.

Indicator Scoring Table



Indicator

1 Point

2 Points

3 Points

4 Points

5 Points

Average Leverage

<5×

5×–10×

10×–15×

15×–20×

>20×

Position Utilization Rate

<50%

50%–100%

100%–150%

150%–200%

>200%

Account Risk Ratio

<0.3

0.3–0.5

0.5–0.7

0.7–0.9

>0.9

Max Historical Drawdown

<10%

10%–20%

20%–40%

40%–60%

>60%

Trading Frequency (Turnover)

<10×

10×–30×

30×–50×

50×–100×

>100×

 

Absolute Position Size

Excessively large position sizes may expose users to elevated trading risk. To support safer trading behavior, the platform will impose maximum position size limits based on each user’s risk level.

Together, these indicators form a comprehensive picture of your current risk exposure.
Higher risk levels (e.g., L4 or L5) typically indicate greater potential risk, and the platform will apply more proactive monitoring and position management accordingly.

You will be informed of your risk status through in-platform pop-ups, risk notifications, and other alerts to ensure full transparency.

 

III. Our Shared Objectives

By implementing position limit management, we aim to achieve the following together:

1.Reduce Irrational Risk-Taking
Discourage emotion-driven or overly speculative “gambler-style” trading and promote rational decision-making.

2.Encourage a Long-Term Perspective
Support trading strategies grounded in analysis and risk management rather than short-term speculation.

3.Preserve Account Viability
Minimize the risk of catastrophic losses from a single trade and help protect your trading capital.

4.Foster a Healthy Trading Ecosystem
Create a more stable, responsible, and sustainable trading environment for all users.

We firmly believe that protecting your assets is the foundation of our shared trust.
Thank you for your continued confidence and support. We will continue enhancing our risk control systems and services, standing by your side as a calm and reliable partner on your trading journey—moving forward steadily, together.

CoinW

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Notice on the Implementation of Position Limits to Support More Stable Trading
Published on: 2023/09/19 10:24Last Update: 2026/01/06 12:21

Dear Valued Users,

Greetings!

In line with our service philosophy of “Users First, Safety Above All,” and to help you manage trading risks more effectively while safeguarding your assets, the platform will soon introduce a position limit management system based on user risk levels.

We firmly believe that successful trading is not only about identifying opportunities, but also about maintaining a clear understanding of risk and managing it prudently. This adjustment is designed to build a more intelligent and considerate layer of risk protection, working alongside you toward a healthier and more sustainable trading journey.

 

I. Core Principle: Tailored Protection Based on Individual Risk Profiles

We recognize that users with different trading habits and risk preferences have varying risk management needs. To provide more targeted protection, the platform will introduce a User Risk Level Assessment System (L1–L5).

This system evaluates your risk profile by analyzing recent trading behavior, including but not limited to:

-Leverage usage

-Position concentration

-Account volatility

Based on this analysis, users are categorized from conservative to extremely aggressive risk profiles.

This is not a judgment—it is an understanding.
Our goal is to better understand your trading style so we can provide guidance and protective measures that are more suitable for you.

Risk Levels Overview

 

Risk Level

Profile Name

Composite Risk Score Range

L1

Conservative

1.0 – 1.5

L2

Steady

1.5 – 2.5

L3

Balanced

2.5 – 3.5

L4

Aggressive

3.5 – 4.5

L5

Extremely Aggressive

4.5 – 5.0

 

II. Risk Level Assessment: Your Trading Behavior Profile

Your risk level is dynamically assessed based on multiple dimensions, primarily including:

1. Definition and Calculation of Core Risk Indicators

a. Average Leverage
The average leverage used across all position openings over the past 30 days.

b. Position Utilization Rate
Average position value ÷ total account equity.
(This value may exceed 100%.)

c. Account Risk Ratio
(Position margin + frozen margin) ÷ total equity.

d. Historical Maximum Drawdown
(Peak equity − trough equity) ÷ peak equity.

e. Trading Frequency / Turnover Rate
Total trading volume ÷ average account equity.

 

2. Composite Risk Score Calculation: Thresholds, Scoring, and Weighting

a. Composite Risk Score Formula
Current indicator score × corresponding weight, summed across all indicators.

b. Dynamic Weight Adjustment
The platform may periodically adjust indicator weights based on overall futures trading behavior across all users.

Indicator Scoring Table



Indicator

1 Point

2 Points

3 Points

4 Points

5 Points

Average Leverage

<5×

5×–10×

10×–15×

15×–20×

>20×

Position Utilization Rate

<50%

50%–100%

100%–150%

150%–200%

>200%

Account Risk Ratio

<0.3

0.3–0.5

0.5–0.7

0.7–0.9

>0.9

Max Historical Drawdown

<10%

10%–20%

20%–40%

40%–60%

>60%

Trading Frequency (Turnover)

<10×

10×–30×

30×–50×

50×–100×

>100×

 

Absolute Position Size

Excessively large position sizes may expose users to elevated trading risk. To support safer trading behavior, the platform will impose maximum position size limits based on each user’s risk level.

Together, these indicators form a comprehensive picture of your current risk exposure.
Higher risk levels (e.g., L4 or L5) typically indicate greater potential risk, and the platform will apply more proactive monitoring and position management accordingly.

You will be informed of your risk status through in-platform pop-ups, risk notifications, and other alerts to ensure full transparency.

 

III. Our Shared Objectives

By implementing position limit management, we aim to achieve the following together:

1.Reduce Irrational Risk-Taking
Discourage emotion-driven or overly speculative “gambler-style” trading and promote rational decision-making.

2.Encourage a Long-Term Perspective
Support trading strategies grounded in analysis and risk management rather than short-term speculation.

3.Preserve Account Viability
Minimize the risk of catastrophic losses from a single trade and help protect your trading capital.

4.Foster a Healthy Trading Ecosystem
Create a more stable, responsible, and sustainable trading environment for all users.

We firmly believe that protecting your assets is the foundation of our shared trust.
Thank you for your continued confidence and support. We will continue enhancing our risk control systems and services, standing by your side as a calm and reliable partner on your trading journey—moving forward steadily, together.

CoinW

Was this article helpful?
0 out of 0 found this helpful
Limited-Time New User Offer!
Sign up now to claim your exclusive 12000 USDT gift pack!
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Popular Articles