Risk Management Clause
10 days ago · Updated on

In order to prevent the market risk from being excessively concentrated on a small number of traders and risk of market manipulation, Zoomex limits the ratio of the number of the open position of each individual user relative to the open interest of the specific contracts.

Individual or multiple accounts belonging to the same user, the sum of positions of any specific contract with the same direction must not exceed a certain percentage of the contract's open interest. Otherwise, Zoomex  may cancel any orders that may increase the position size.

Method of calculation:

Using inverse contract as an example, the first tier of open interest is $5,000,000. When a particular contract's open interest is on the first tier (0~5,000,000), the maximum position in the same direction (including existing position and active orders) a user can open is limited to 20% of the total open interest. For each increase in the total open interest tier, users can hold more positions according to the corresponding percentage.Based on the open interest in the tiers, the maximum number of open positions that can be held by a single user for each direction is as follows:

 

Inverse contract pairs: BTCUSD/ETHUSD/EOSUSD/XRPUSD

Total open interest tier Maximum percentage of open positions held by each user in the tier New position opened in the tier Maximum limit of open position user can open
< 5,000,000 20% 1,000,000 1,000,000
5,000,000 to 10,000,000 18% 900,000 1,900,000
10,000,000 to 15,000,000 16% 800,000 2,700,000
15,000,000 to 20,000,000 14% 700,000 3,400,000
20,000,000 to 25,000,000 12% 600,000 4,000,000
25,000,000 to 30,000,000 10% 500,000 4,500,000
30,000,000 to 35,000,000 8% 400,000 4,900,000
35,000,000 to 40,000,000 6% 300,000 5,200,000
40,000,000 to 45,000,000 6% 300,000 5,500,000
45,000,000 to 50,000,000 6% 300,000 5,800,000
50,000,000 to 55,000,000 6% 300,000 6,100,000
55,000,000 to 60,000,000 6% 300,000 6,400,000
60,000,000 to 65,000,000 6% 300,000 6,700,000
65,000,000 to 70,000,000 6% 300,000 7,000,000
70,000,000 to 75,000,000 6% 300,000 7,300,000
And so on... 6% 300,000 more than 7,300,000

 

For USDT Contracts

Total open interest tier Maximum percentage of open positions held by each user
Applicable to all tiers (BTC) 5%
Other Perpetual Contracts 10%
 

Note: The maximum percentage of open positions held by each user is only limited to a single particular coin type. For example, a user can hold three positions, ETHUSDT, POLUSDT, SOLUSDT, and the maximum open position size is limited to 10% of their individual open interests.