For tokens launched through IEO, the price might be volatile at the beginning and it takes time for the market reach a consensus of the token value. For the derivative contracts with leverage, the volatility would be even hundred times bigger compared to that of its underlying asset. To prevent market manipulation, BXB adopts Dynamic Risk Control, Position Limits Mechanism and Restriction on Trading API for the benefits of retail investors.
Dynamic Risk Control
The Dynamic Risk Control System monitors a series of risk indicators to recognize investors’ malicious behaviors. BXB will take measures including Risk Warning Emails, Temporary Prohibition on opening new position and Account Freeze on accounts with risk indicators over thresholds, as follows:
1. Frequent Order Cancellation: When investor’s number of submitted orders of the investor is bigger or equal to 300 in 10 minutes while his/her Order Cancellation Ratio is larger than 90%, Where
2. Unusual Execution Ratio: When investor’s number of submitted orders is bigger or equal to 100 in 10 minutes while his/her Execution Ratio is smaller than 10%, where
3. Unusual Volume Ratio: When investor’s Volume Ratio is larger than 50% in 10 minutes while the corresponding market Price Range Ratio is larger than 10%, where
Position Limits Mechanism
BXB adopts the “Dynamic Position Limits Mechanism” based on market liquidity. The Position Limits of an option/futures contract for an individual account will adjust based on market daily turnover of the contract.
|Market Daily Turnover/USDT||Position Limits for Single Account|
|Less than 100 Million||1000|
|Between 100 Million and 500 Million||5000|
|More than 500 Million||25000|
The completed Position Limits would be announced before the contract launch.
Restriction on Trading API
In order to protect retail investors and prevent market manipulation, BXB currently does NOT provide the Trading API to public.