Dear Users：
In order to further improve the risk control system for perpetual contracts and enhance the overall risk protection capabilities of the platform, ASTX Exchange hereby announces the details of the "Forced Liquidation" Rules for perpetual contracts. Please carefully read the following details:
1. Forced Liquidation Explanation
When the risk rate of your contract account reaches the forced liquidation threshold set by the system, the system will automatically execute a forced liquidation of the relevant positions. After the liquidation occurs, the position will be closed, and the associated funds will enter the liquidation process.
2. Forced Liquidation Rules for Cross Margin Mode
In Cross Margin Mode, the forced liquidation process works as follows:
- The system will forcibly close all positions in the contract account.
- During the liquidation process, the system will first settle any losses incurred by the orders and the associated trading fees.
- After deducting the losses and fees, any remaining contract balance in the account will be liquidated. Once the liquidation is complete, the account will no longer hold any contract margin balance.
3. Forced Liquidation Rules for Isolated Margin Mode
In Isolated Margin Mode, the forced liquidation process works as follows:
- The system will only forcefully close the position corresponding to the isolated margin.
- During the liquidation process, the system will first use the margin of the specific position to settle any losses and trading fees.
- After deducting the losses and fees, the remaining margin for that position will be liquidated and will not be returned to the contract account balance. This liquidation action will only affect that specific position and will not impact other funds in the contract account.
4. Liquidation Funds and Risk Guarantee Fund Pool Explanation
All funds generated from forced liquidation will be allocated to the platform's risk guarantee fund pool, which will be used for the following purposes:
- In case of extreme market conditions, such as severe volatility or insufficient liquidity, where the liquidation price cannot fully cover the losses of a position and results in a "liquidation deficit" (i.e., the position is "wiped out");
- The platform will use the funds from the risk guarantee fund pool to cover the deficit, ensuring that users do not incur additional liabilities due to liquidation;
- This mechanism ensures that users will not face additional debt in the event of a deficit while maintaining the overall risk stability of the platform.
5. Risk Warning
Please manage your leverage carefully and monitor your account's risk rate in real-time to avoid forced liquidation and the risk of funds being liquidated due to market fluctuations. The platform may make dynamic adjustments to the relevant mechanisms based on market conditions.
We appreciate your continued support and understanding of ASTX Exchange. If you have any questions, please do not hesitate to contact our online customer service.