Margin Account Risk and Liquidation

HTX monitors the risk of user accounts all the time and implements risk management corresponding to the users’ risk levels. Please refer to the following formulas to obtain account risk and risk management information.

● Maintenance margin for a token = Net debt of the token * Maintenance margin rate of the token * USDT price of the token

● Account risk rate = (Total value of margin - Total value of net debt) / Total maintenance margin

HTX sets the following risk indicators for users, and the table below explains the available operations under different risk rates:

● If a user's account risk rate falls below a certain requirement, they will not be able to initiate a withdrawal request. This rule applies both before and after the withdrawal has been processed.

● During a forced liquidation initiated by the system, users cannot perform any account operations. The collateral in the account will be used to repay interest and debts. When the value of the collateral falls below zero, the account will be marked as having negative equity and HTX reserves the right to claim the debt from the user.