Since the start of 2022, the sharp drop in cryptocurrency prices has led to a continued contraction in crypto market spot trading volumes. Crypto derivatives market volumes grew by 4.58% to $2.74 trillion, accounting for 62.8% of total trading volumes, while the market share of spot trading volumes was only 37.2%. This shows that at a time when the spot market is sluggish, more and more investors are choosing crypto derivatives, such as futures trading, that can be used to hedge and improve capital utilization.
MEME Exchange(MMEX), low liquidation risk exchange is a leading global financial derivatives service platform that provides secure and trusted digital asset trading and asset management services to many users around the world.
With the spread and popularity of blockchain technology, cryptocurrencies have turned from an esoteric and geeky experiment into an approachable investment tool, and more and more people are participating in it both as investors and speculators.
There are also more and more digital currency contract investors. Digital currency contracts use the power of leverage to increase the use of capital and help investors to achieve big returns with a small amount of money.
Capital is the most essential element for investors, and only by being able to better plan, use and control capital they can achieve the right target of risk management and profitability. The degree of capital utilization determines the success or failure of trading, and only with good capital management you can be successful in avoiding risks and reaping benefits.
At present, most digital asset trading platforms will set up an “early liquidation” trigger mechanism in the platform’s contracts to automatically liquidate the position when the user is left with about ten to twenty percent of his margin. When the cryptocurrency fluctuates drastically and instantly, the user’s margin will be eroded. In other words, before the entire user’s margin is used up, the position is already closed. This has caused confusion for many investors. Why should I use 10x leverage and have my position closed when the underlying contract loses 8%-9% instead of 10%?
MEME Exchange(MMEX) has the lowest liquidation rate and the highest capital utilization rate on the web. Forced liquidations only happen when the margin rate is ≤1%, allowing large capital users to freely choose higher leverage multiples, making trading more flexible. This allows users to survive an high volatility and multiply their profits!
The Secured Assets Ratio is an indicator of the risk of the user’s assets. When the Secured Assets Ratio is ≤0%, the user’s position will be forced to close by the system. Therefore, investors should pay close attention to the changes in the Guaranteed Asset Ratio to avoid having their positions forcibly closed.
Secured Asset Ratio = (Account Equity / Secured Assets Employed ) * 100% — Adjustment Factor
Where: Secured Assets Employed = Secured Assets Held + Secured Assets Frozen
The adjustment coefficient of MEME Exchange(MMEX) is 1%, i.e. MEME Exchange(MMEX) will only trigger the mandatory liquidation mechanism after 99% loss of secured assets.
This fully reflects MEME Exchange(MMEX)’s confidence in its own technology and capital strength.
In addition, MEME Exchange(MMEX)’s low liquidation mechanism allows every user trading on MEME Exchange(MMEX) to close their positions at a much lower price than other platforms. In the low liquidation mechanism, our capital utilization rate can reach 99%, with the lowest 1% maintenance margin rate in the network, which can ensure that you can open higher leverage multiples with large capital.
So in this period, when all exchanges are starting to show their skills, it is important for users to choose a professional, safe and stable exchange, and MEME Exchange(MMEX)’s many features and incentive programs perfectly match everything users want in a quality exchange.
In the future, MEME Exchange(MMEX) will have more innovative products to launch and will give you more valuable and practical related products in this field. We welcome all traders to choose MEME exchange（MMEX）- Low liquidation risk exchange and work together to build a better financial world.