Illustration of Huobi DM Tiered Adjustment Factors

Tiered adjustment factors function  goes live officially after delivery and settlement at 16:00 on July 19,2019(GMT+8). For previous adjustment factor information, please click here>>>

Adjustment factors is designed to prevent users from system's margin call losses. Huobi DM adopts Tiered Adjustment Factors mechanism, in which there are three tier of adjustment factors. As users with higher net position, then he/she will be in higher tier of adjustment factor with higher risk.

Taking BTC contract as an example, the BTC adjustment factors tiers are laid out as below:

①  If a user chooses 10x leverage ratio:
With long positions of 1200 lots and short positions of 2000 lots of BTC weekly contracts;
The net position should be 800 lots ( 1 BTC contract = 100 usd/lot ) ;
Corresponds to adjustment factor of 8%.

②  If a user chooses 20x leverage ratio:
Hold long positions of 1000 lots and short positions of 4000 lots of BTC weekly contracts; long positions of 8000 lots and short positions of 5000 lots of BTC biweekly contracts; long positions of 5000 lots and short positions of 0 lots of BTC quarterly contracts;
The corresponding net position should be: 11000 lots = 3000 + 3000 + 5000
Weekly contracts of 3000 lots = ∣ 1000 - 4000 ∣
Biweekly contracts of 3000 lots = ∣ 8000 - 5000 ∣
Quarterly contracts of 5000 lots = ∣ 5000 - 0 ∣
* ( 1 BTC contract = 100 usd/lot ) ;
Corresponds to adjustment factor of 28%.

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