Dear User,
To better protect your trading safety during market closures or low liquidity periods in traditional financial markets (stocks, forex, commodities, indices, etc.), we have introduced a Low Liquidity Hours risk control mechanism for relevant trading pairs. This guide will help you quickly understand the trading hour definitions, on-screen indicators, and various trading restrictions under this mechanism.
Why Low Liquidity Hours Exist
Some contracts on our platform (e.g., stocks, forex, commodities, indices) have prices pegged to traditional financial markets. When these underlying assets are in pre-market, after-hours, closed, or holiday periods, market liquidity may drop and price fluctuations may be limited. Therefore, we activate additional risk controls during these times to reduce the risk of extreme market movements.
How to Check Trading Hours for Different Assets
The regular trading hours and low liquidity hours (including closed, pre-market, and after-hours) for each trading pair are determined by the traditional financial markets. You can view the current status on the trading page interface.
When a trading pair is in Low Liquidity Hours, you will see the following on the front end:
- Label indicator: A "Low Liquidity Hours" label will appear next to the trading pair.
Risk Control Restrictions During Low Liquidity Hours
During Low Liquidity Hours, the system will apply the following additional risk control rules to the relevant trading pairs (all parameters are configurable and may be adjusted based on market conditions; default settings are shown below):
Reduced Maximum Position Value
- The maximum position value that can be opened is reduced to half of the normal level (e.g., if the normal maximum is 5,000 USDT, it becomes 2,500 USDT during Low Liquidity Hours).
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Existing positions:
- If your current position already exceeds the Low Liquidity Hours limit, your existing position is unaffected, but you cannot open more positions. You must reduce your leverage before opening any new positions.
- If any existing open orders cause the limit to be exceeded, the system will cancel the most recent orders in order of placement time.
Reduced Price Deviation for Market Orders
- The allowed price deviation between the executed price of a market order and the index price is reduced from the normal 5% to 2.5%.
- If an existing order results in a trade that exceeds the new deviation limit, it will be canceled by the system.
Mark Price Bounding
- The mark price cannot deviate from the index price by more than ±5%. If it exceeds this bound, the boundary value will be used for calculation.
Reduced Maximum Leverage
- For users opening new positions, the maximum leverage during Low Liquidity Hours is half of the normal maximum (e.g., 20x normally → 10x during Low Liquidity Hours).
- Users with existing high-leverage positions are unaffected and may continue to hold them, but users cannot open more positions using the original leverage. To open more positions, you must first reduce leverage to the level permitted during this period.
API Trading Frequency Limit
- For each TradFi trading pair, the API order placement frequency will be reduced during Low Liquidity Hours.
Important Reminders
- The risk control parameters during Low Liquidity Hours (e.g., position reduction ratio, price deviation threshold, leverage reduction ratio, etc.) are default values. The platform may adjust them from time to time based on market conditions, and further announcements will be made in such cases.
- Please pay close attention to the "Low Liquidity Hours" label and countdown on the trading page, and plan your order timing and positions accordingly.
- If you have any questions, please refer to our Help Center or contact customer support.
Thank you for your understanding and support. Wishing you smooth trading!
