**How are Risk Rate, Transfer Risk Rate, Risk Alert Rate, Forced Liquidation Rate and Forced Liquidation Price calculated?**1) Risk Rate: It is an index evaluating the risk of liquidation on your margin account.

Risk Rate = [ ( Total Quote Coins - Unpaid Quote Coin Interest )/Index Price + (Total Base Coins - Unpaid Base Coin Interest ]/(Borrowed Quote Coins/ Index Price + Total Borrowed Base Coins)*100%.

2) Transfer Risk Rate: The Transfer Risk Rate of 2X/3X/4X/5X Margin are respectively 200%/150%/135%/125%. If Risk Rate is larger than Alert Risk Rate, your account is rated as Safe and the extra assets can be transferred outside your Margin account.

3) Alert Risk Rate: It is determined by the market depth and trading volume for the specific margin pair. If Risk Rate is less than or equal to Alert Risk Rate, your account is rated as Dangerous and the system will send notifications to you via message and Email.

4) Forced Liquidation Rate: It is determined by the market depth, trading volume, borrowed coin amount etc for the specific margin pair. If Risk Rate is less than or equal to Forced Liquidation Rate, your account is rated as Dangerous and the system will be triggered to forcely liquidate your account before sending notifications to you via message and Email.

5) Liquidation Price Calculation: Liquidation Price = ( Borrowed Quota Coins * Forced Liquidation Rate + Unpaid Quote Coin Interest - Total Quote Coins)/(Total Base Coins - Unpaid Base Coin Interest - Borrowed Base Coins * Forced Liquidation Rate)

**What is Margin Insurance Fund?**30% of the daily interest is added to Insurance Funds (Margin) every day to handle the bankrupt positions. CoinEx reserves the rights for future use of the funds. If the Insurance Fund (Margin) is insufficient to cover the remaining portion of the bankrupt positions, CoinEx will then pay for this portion. Under such circumstances, your CoinEx account is in debt with withdrawal function disabled. To clear your debt, you can either deposit funds to your Margin account or wait for Insurance Fund to be sufficient again which will pay off debts in chronological order.

**What can I do to lower down forced liquidation risk?**1) Reasonably leverage in Margin Trading and adjust your positions

2) Learn when to take profits or cut losses by liquidating your positions.

3) Add margin on your positions in time and make sure the ratio between Total Assets against Leverage is above 110%.

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