Huobi contract takes the lead in supporting the three-stage ladder level protection mechanism to further reduce the level risk

On March 10, the vice president of Huobi Group stated in a live broadcast that the Huobi contract has been continuously exploring and innovating in reducing the risk of user's leveling and user protection. In addition to the platform's recently-launched leveling mechanism, the ladder adjustment coefficient mechanism, and the 2 + 1 investor protection fund advanced compensation mechanism, it also takes the lead in supporting the three-stage leveling protection mechanism. The three-stage stepwise close protection mechanism means that when a user's position triggers a strong close, all current entrusted orders for this symbol contract are first cancelled; then, if the margin rate is still less than 0, long and short positions in the same period contract are self-traded; finally, if Margin rate is still less than 0, then triggering a ladder close, forcibly reducing the position to the upper limit of the net position of a certain position. This mechanism will further help users reduce the risk of leveling, and thus reduce unnecessary losses.