We adopt a progressive liquidation mechanism. For the contract which margin rate ≤ margin standard rate (2.5%),progressive liquidation will be applied.

We adopt the partial liquidation mechanism, this mechanism can decrease the margin automatically to avoid full liquidation. Liquidation engine adopts the followings to reduce the risk limit to decrease the margin for contract trading.

  1. The frozen margin will be unlimited if there is the frozen (for example: cancel the unfilled orders).
  2. If users have the long and short position in a same contract, the position will be filled to free the margin.
  3. The positions adopted by risk control system will be re-ordered on the market and closed by the bankruptcy price.
  4. If the order closed with the price that higher than the bankruptcy price, the fund that generated by this process will be added in to the Securities Investors Protection Fund.
  5. If the order cannot be liquidated fully after adopted by risk control system, the rest positions will be applied by ADL.