Perpetual Contract Liquidation Mechanism Update Announcement

Dear Users,

To further improve the risk control system for perpetual contracts and enhance overall risk protection, the platform will officially update the perpetual contract forced liquidation mechanism on December 22, 2025, at 14:00 UTC, introducing and clarifying the "Liquidation" rules. The details are as follows:

1. Liquidation Overview

When your contract account’s risk ratio reaches the system’s forced liquidation threshold, the system will perform a liquidation of the relevant positions. Once liquidation occurs, positions will no longer be held, and the corresponding funds will enter the liquidation process.

2. Cross-Margin (Full Account) Liquidation Rules

When forced liquidation occurs under cross-margin mode:

• The system will forcibly close all positions under the contract account;

• During liquidation, losses from orders and related trading fees will be settled first;

• After deducting order losses and fees, the remaining available contract balance will be liquidated. Upon completion, the account will no longer retain any contract margin balance.

3. Isolated Margin (Per-Position) Liquidation Rules

When forced liquidation occurs under isolated margin mode:

• Only the specific isolated position will be forcibly closed;

• During liquidation, the position’s corresponding margin will first cover order losses and trading fees;

• After deducting order losses and fees, any remaining margin of the position will be liquidated, and no margin will return to the contract balance. This liquidation will not affect other funds in the account.

4. Liquidation Funds and Risk Reserve Pool

All funds generated from forced liquidation will be allocated to the platform risk reserve pool for the following purpose:

• In extreme market conditions, such as high volatility or insufficient liquidity, where the liquidation price cannot fully cover position losses and result in negative account balances,

• The platform will use the risk reserve pool to cover users’ negative balances beyond zero;

• This ensures users do not incur additional debt from negative balances while maintaining the platform’s overall risk stability.

5. Risk Reminder

Please manage your leverage responsibly and monitor your account risk ratio regularly to avoid forced liquidation and loss of funds. The platform reserves the right to dynamically adjust relevant mechanisms based on market conditions.

Thank you for your understanding and support. For any questions, please contact our online customer service.