Margin trading is a type of investing where a little sum of money can be utilized to make investments worth many times the principal. To maximize the use of their cash, users leverage a little quantity of cryptocurrency, borrow a particular amount of cryptocurrency, and then go long (buy) or short (sell).

1. General Rules

1.1 These regulations were developed in line with the concepts of justice, openness, and impartiality in order to standardize leveraged transactions and leveraged loans of cryptocurrency assets, preserve market order, and defend the legitimate rights and interests of investors.

1.2 These guidelines serve as the standard for all margin trading activities carried out by users on MaskEX.

2. Collateral

2.1 Only the underlying currency and the currency in which the trading pair is denominated can be accepted. Currently, all trading pairs are denominated in USDT.

2.2 Single opening principal ranges from 50 - 50,000 USDT

3. Borrowing Rules

3.1 The maximum leverage in margin trading varies up to 125x depending on the trading pair. The maximum borrowable asset, using 10x leverage as an example, is 9x the entire assets in the particular margin account. In an ETH/USDT margin account, a person holding 10 USDT may borrow up to 90 USDT, bringing their total accessible money to 100 USDT.

4. Interest

4.1 No interest on borrowing currency, no funding rate, no overnight fee for holding positions, etc.

5. Fees

5.1 Fee for opening position: Principal * leverage * rate of opening position, calculated to position P&L.

Fee for closing position: Principal * leverage * rate of closing position, calculated to position P&L.

6. Risk Control

6.1 The user's margin level can be monitored by MaskEX in real time, and the exchange can take appropriate action in response to changes in the margin level.

6.2 When the risk protection fund cannot take over the position of the user who entered the position, the counterparty liquidation will occur. MaskEX will try to avoid this situation as much as possible, for example, through the method of Fill and Kill, to minimize the impact of the counterparty's liquidation. Due to the high volatility of the digital currency market and the high leverage of super leverage, this situation may still occur. In order to provide the best user experience, we do our best to reduce the possibility of this happening.

6.3 When the counterparty closes the position, we will immediately notify the affected users. At this time, the user's position will be closed at the bankruptcy price. After the counterparty closes the position, the user can reopen the position at any time.

6.4 It should be noted that the bankruptcy price may not be within the market transaction price range;

6.5 The user's position in the priority ranking is calculated based on the user's profit and leverage. Generally, the more profitable the trader with the higher leverage will be liquidated first. Specifically, users will be ranked based on their margin ratio and the percentage of unrealized profit and loss as collateral. This ranking is called ‘LeveragePnl’ and is calculated as: unrealized profit and loss/margin * margin ratio. For specific formulas, see the end for details.

Under this calculation, users will be sorted according to leveraged returns. When the counterparty closes the position, the user will be notified of the closing amount and closing price. Users can re-enter immediately after being automatically reduced positions.

• Profit and loss ratio = Max (0, unrealized profit and loss) / Max (1, account balance)

• If (account balance + unrealized profit and loss) ≤ 0, the margin rate = 0

• If (account balance + unrealized profit and loss)> 0, then the margin rate = maintenance margin / (account balance + unrealized profit and loss)

• Leveraged income = margin rate * percentage of profit and loss

• Leveraged income ranking interval = ranking (user leveraged income) / total number of users