Malta-based digital assets exchange OKEx is to implement a comprehensive upgrade of its futures trading platform to improve risk management on digital asset trading market. The changes will be implemented in the second half of May 2019.
A new Tiered Maintenance Margin Ratio System is being adopted to avoid the liquidation of large positions, causing big impact on market liquidity. First introduced on OKEx Perpetual Swap Trading, tiered maintenance margin ratio system has effectively improved the trading experience of our users. Not only does it prevent cascade liquidation, but it also enables users to have a wider choice of leverage levels. The system divides users’ positions into different tiers based on their maintenance margin ratios. The larger the position size one holds, the higher the maintenance margin ratio is required, which means that users must have sufficient margin to support their high leverage level.
With the new tiered maintenance margin ratio system being introduced, higher leverage levels are now made available. The maximum leverage level available for BTC contracts is 100x, for EOS, ETH, LTC, and BCH 50x, for ETC and ERP 30x, and for BSV and TRX 20x.
In addition, instead of fully liquidating all positions when margin call occurs, partial forced liquidation will be exercised in the new upgrade. Therefore, even under a volatile market condition, users will have a much lower risk of losing all their positions.
However, to minimise the impact of the upgrade to our existing customers, our futures trading will support both forced liquidation modes during the transition period. Users are recommended to use the new forced liquidation mode to minimise their positions’ risks.
