Dear BitMax.io Users,
To further enhance margin trading experience, BitMax.io will update the liquidation mechanism for Margin Trading with introduction of BLP (Backstop Liquidity Provider) program on June 9th, 10:00 a.m. EDT. Updated liquidation mechanism will operate as follows:
- When Cushion Rate of the Margin Account drops to 1.0, the system will start the liquidation with transferring orders to secondary market for forced liquidation.
- When Cushion Rate drops to 0.7 during the liquidation process, or when the Cushion Rate still does not exceed 1.0 after the liquidation, the remaining positions will be sold to BLP.
- After the remaining positions are sold to BLP and executed, all the functions affected earlier will be automatically re-enabled for user's Margin Account.
The updated liquidation mechanism with introduction of BLP program is designed to minimize market impact, and therefore mitigate risk associated with price capitulation caused by the liquidation under extreme market volatility.
Once the new mechanism goes live, the distressed positions of accounts that have been "beyond bankrupt" (net account value ≤ $0) will be sold to BLP, and all the functions affected earlier will be automatically re-enabled for the Margin Account.
We truly appreciate your continued support.
The BitMax.io Team
June 5, 2020
English Telegram Group：https://t.me/BitMaxioEnglishOfficial
India Telegram Group：https://t.me/BitMaxIndiaOfficial
Russian Telegram Group: https://t.me/BitMaxioRussian
Korean Telegram Group：https://t.me/BitMaxioBTMXioKoreanCommunity
Turkish Telegram Group: https://t.me/BitMaxBTMXTurkishOfficial
Vietnamese Telegram Group: https://t.me/BitMaxVietnameseOfficial
Italian Telegram Group: http://t.me/BitMaxOfficialItalianCommunity
Japanese Telegram Group: https://t.me/BitMaxioJapaneseOfficial
Arabic Telegram Group：https://t.me/BitMaxioArabicOfficial
Spanish Telegram Group：https://t.me/bitmax_spain