A risk limit is a risk management mechanism used to limit the risk of a trader's position. In a trading environment with large price fluctuations, a single trader who uses high leverage to hold a large position may bring huge losses through the position. This system uses the concept of dynamic leverage, that is, the maximum leverage that can be used when trading will change according to the value of the position held by the trader: the greater the value of the position held, the lower the maximum leverage that can be used. At the same time, the larger the leverage is, the smaller the position that can be opened.
Notional value of holdings (BTC)
Notional value of holdings (ETH)