BKEX Global Will Have A Downtime Update Of Contract Risk Limit Mechanism (Important)

Dear Users: 

In order to apply the internationally accepted tiered margin mode, BKEX will update the original contract risk limit mechanism. The new mechanism adopts the tiered margin mode for risk control. The maximum available leverage is determined by the position value in the same currency. The greater the position value is, the lower the maximum available leverage is. Users can adjust the leverage ratio by themselves, and all position values are calculated based on the nominal value of the contract. The initial margin ratio is determined according to the leverage multiple adjusted by users.

1. Changes, Impact And Effective Time Of This Update

Contract system will have a downtime upgrade at 15:00 on February 9, 2022 (UTC+8), which is expected to be completed within three hours. After this upgrade, the original risk limit mechanism will be cancelled, and the impact is as follows:

• The downtime update is expected to be completed within three hours. During the upgrade period, all contract functions will be suspended, all open orders will be cancelled, and the take-profit and stop-losssettings will become invalid. It needs to be reset after the update. The positions will not be affected. Please do a good job in position risk management in advance to ensure the safety of assets, Thank you for your understanding and support!
• Users who open their positions before the update of the new mechanism will still follow the original old risk limit mechanism. After the new mechanism takes effect, if users have positions under the old risk limit mechanism, they cannot open new positions. Users need to close the positions under the old mechanism before they can open new positions.
• The positions opened by users after the update of the new mechanism will be implemented according to the new mechanism.

2. Position Value, Maximum Available Leverage And Initial Margin Ratio

• The position value calculated for each tier includes the sum of long and short position values in the same currency.
• When the margin is insufficient, we will send position early warning and liquidation notice to users through e-mail and on-site letter. As a risk prompt, this function cannot guarantee timely sending and delivery. In the process of using this service, BKEXreserves the right not to be obliged to send a notice because users may be unable or delayed to receive email reminders due to network reasons. To avoid missing messages, please make sure to add BKEXmessages to the mailbox white list.
• The position value of each tier corresponds to the maximum available leverage. The greater the position valueis, the lower the available leverage is. When the leverageyou set is higher than the maximum available leverage, the system will remind you whether to confirm to place an order with the maximum available lever.
• When adding to positions, the system will remind you of the number you can add to positions under the current leverage.
• The initial margin ratio is related to the leverage you set. BKEXstipulates that the initial margin ratio is 1/leverage.

3. Maintenance Margin Ratio

The maintenance margin ratio has nothing to do with leverage, but is calculated according to the user’s position value. The higher the position value is, the higher the corresponding maintenance margin ratio is .

In other contract platforms, the maintenance margin ratio is usually half of the initial margin ratio. According to the maintenance margin ratio rules of BKEX Contract, BKEX's maintenance margin ratio is lower and more beneficial to users.

Tiered position closing mechanism of BKEX remains unchanged, that is, the positions are liquidated from large to small according to the position profit (the positions with high margin ratio are liquidated first), and only one position is liquidated at a time, so as to ensure that the user's position liquidation are reduced to the greatest extent.

Maintenance margin ratio will directly affect the liquidation price. Therefore, we recommend that users close their positions before the account margin is reduced to the maintenance margin level to avoid automatic liquidation.

BKEX Global

01/27/2022

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