Risk control for opening positions

Bitget's position opening risk control mechanism is a key safeguard provided by the platform. It is designed to help users manage risk in highly volatile markets and minimize significant losses from high-leverage trading. Here's how the position opening risk control mechanism works.

1. Deviation between the mark price and market price
In cryptocurrency trading, the mark price is calculated based on a weighted average from multiple exchanges and is intended to reflect the true market price. However, during extreme market volatility, the mark price may deviate significantly from the platform's real-time market price. In such cases, users opening positions based on the market price may face significant risk.

2. Risk control for high-leverage trading
In high-leverage trading, even small price fluctuations can cause significant changes in account balances. To reduce users' risk in volatile markets, Bitget prevents users from opening positions in unfavorable directions when the deviation between the market price and mark price is too large.

3. Risk ratio control
Bitget's position opening risk control mechanism prevents the risk ratio from exceeding 90% when opening a position. The risk ratio is an important indicator of an account's risk level and is calculated as:
Risk ratio = maintenance margin ÷ account equity
When the risk ratio exceeds a certain threshold, the platform considers the account to be in a high-risk state, which may trigger liquidation. Therefore, the mechanism ensures that opening a position does not cause the risk ratio to rise too high, reducing the risk of liquidations.

Example

Suppose a user trades BTCUSDT futures on Bitget with 10x leverage. During extreme market volatility, the mark price and market price deviate significantly. If the user attempts to open a position in an unfavorable direction (for example, going long when the market price is far above the mark price), Bitget's risk control mechanism will block the order to ensure that the user's risk ratio remains below 90%.

This mechanism effectively protects users' assets, preventing significant losses from high-leverage trading in volatile markets.