Risk Limit / Position Limit
Risk limits, known as Position Limit (Notional Value in USDT) in VOOX, are a risk management mechanism used to limit a trader's position risk. In a volatile trading environment, a single trader holding a large position with high leverage can result in significant losses. The system uses the concept of dynamic leverage, i.e. the maximum leverage available for trading will vary depending on the value of the position held by the trader: the greater the value of the position held, the lower the maximum leverage available. At the same time, the larger the leverage selected, the smaller the open position.
Maximum Leverage & Maximum Position
VOOX adheres to a tiered margin model approach for risk management. The maximum leverage is determined based on your position's notional value. To mitigate the potential risks associated with high leverage, the larger your position notional value, the lower the maximum leverage.
Consequently, your chosen leverage will directly affect the required initial margin. You're recommended to decide your desired leverage prior to opening a position. The higher the leverage, the smaller the position (notional value) you can open; the lower the leverage, the higher the position (notional value) you can open.
Risk Limit Mechanism and Inquiry
VOOX implements a “dynamic adjustment” mechanism for the risk limit. You do not need to select a risk limit tier manually. The leverage selected determines the maximum allowable position size. Additionally, position value and open order value affect the range of available leverage. You can only select leverage within the maximum leverage supported by the current risk limit tier. Lower leverage provides a higher risk limit, allowing for a larger position size. Higher leverage results in smaller allowable position size but increases the potential return due to the lower initial margin requirement (i.e., 1/leverage).
During trading, as the position value changes, the system automatically determines the user’s risk limit tier based on the position and open order value. Corresponding maintenance and initial margin requirements adjust accordingly. When there are no positions or orders, the risk limit tier defaults to Tier 1.
Different futures pairs have varying risk limit tiers, with corresponding maintenance margin rates that differ by position bracket. For detailed information, please refer to the official webpages: https://futures.voox.com/en_US/futuresData
Take BTC/USDT as an example, as shown in the following table:
| Pair | Tier | Position Bracket (Notional Value in USDT) | Max Leverage | Tiered MMR |
| BTC/USDT | 1 | 0-200,000 | 150x | 0.30% |
| BTC/USDT | 2 | 200,000-500,000 | 125x | 0.40% |
| BTC/USDT | 3 | 500,000-1,000,000 | 100x | 0.50% |
| BTC/USDT | 4 | 1,000,000-2,000,000 | 75x | 0.65% |
| BTC/USDT | 5 | 2,000,000-4,000,000 | 50x | 1.00% |
| BTC/USDT | 6 | 4,000,000-25,000,000 | 25x | 1.00% |
| BTC/USDT | 7 | 25,000,000-30,000,000 | 20x | 2.50% |
| BTC/USDT | 8 | 30,000,000-70,000,000 | 10x | 5.00% |
| BTC/USDT | 9 | 70,000,000-160,000,000 | 5x | 10.00% |
| BTC/USDT | 10 | 160,000,000-200,000,000 | 4x | 12.50% |
| BTC/USDT | 11 | 200,000,000-300,000,000 | 3x | 15.00% |
| BTC/USDT | 12 | 300,000,000-1,200,000,000 | 2x | 25.00% |
| BTC/USDT | 13 | 1,200,000,000-9,999,999,999 | 1x | 50.00% |
Platform Risk Limit Adjustment Rules
VOOX regularly assesses market liquidity and may adjust the risk limit when significant changes occur. The following parameters may be affected:
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Max Leverage
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Risk Limit
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Tiered MMR
Before adjusting the risk limit, the system will run a simulation on your account. If the resulting risk tier is lower, the new parameters will be applied, and your margin requirements may change.
If the resulting tier is higher, the current risk limit will remain in effect until the system reassesses and confirms that the position is safe.
Risk Disclaimer
Cryptocurrency prices are subject to high market risk and price volatility. You should only invest in products that you are familiar with and where you understand the associated risks. You should carefully consider your investment experience, financial situation, investment objectives and risk tolerance and consult an independent financial adviser prior to making any investment. This material is for reference only and should not be construed as financial advice. Past performance is not a reliable indicator of future performance. The value of your investment can go down as well as up, and you may not get back the amount you invested. You are solely responsible for your investment decisions. VOOX is not responsible for any losses you may incur.
VOOX attaches great importance to compliance and has strictly abided by local regulations. Please obey local laws and regulations in your country or region. VOOX reserves the right in its sole discretion to amend, change, or cancel this announcement at any time and for any reason without prior notice.
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