Will I be in debt if the perpetual contract handling fee is too high and my position is liquidated? Will further trading be prohibited?

Arrears will appear after the perpetual contract is liquidated. Arrears can be dealt with through active margin calls, platform margin calls, forced liquidation and legal recovery. It is recommended to take measures to avoid arrears, including controlling positions, setting stop loss and profit points, and preparing sufficient margin.

Will there be any arrears after the perpetual contract liquidation?

Yes.

The perpetual contract adopts a margin trading model. When a position is liquidated, if the margin in the account is insufficient to cover the loss, additional margin will be required. If the additional margin cannot be paid in time, arrears will arise.

Will I be banned from continuing to trade after my position is liquidated?

No.

After the liquidation, the trading platform will not prohibit users from continuing to trade. Users only need to make up the outstanding balance to regain their trading qualifications. However, it should be noted that after a liquidation, the user's account often has no funds and needs to make a deposit before continuing to trade.

Procedure for handling arrears:

• Active margin call: After the user realizes that the position has been liquidated, the user should promptly add margin to cover the arrears. payment.
• Platform margin call: If the user fails to add margin in time, the platform will automatically withdraw funds from the user's other trading accounts to add additional funds, which is called "liquidation margin call".
• Forced liquidation: After the platform calls for margin, if the funds in the account are still insufficient to cover the debt, the platform will forcefully liquidate the currently held contracts to obtain funds.
• Legal recovery: If the above methods fail to recover the debt, the platform may pursue legal means to recover the debt from the user.

Recommendation:

In order to avoid debt due to perpetual contract liquidation, it is recommended to take the following measures:

• Reasonable Control positions and avoid excessive leverage transactions.
• Set stop loss and profit points, stop losses in time, and control losses.
• Prepare enough margin in advance to cope with market fluctuations.

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