Reduce-Only Trading Protection for Perpetual Futures

To maintain orderly futures market operations, Hotcoin may temporarily apply trading protection measures to certain futures contracts based on market conditions. This article outlines when these measures may be activated, how they affect trading, and the associated risks.

1. When May Reduce-Only Mode Be Activated?

During periods of significant short-term market volatility or changes in trading conditions, affected futures contracts may temporarily enter Reduce-Only mode or be subject to other protective restrictions. The specific measures applied will depend on actual conditions. Users should check the trading page for relevant notices.

2. How Does Reduce-Only Mode Affect Trading?

During the protection period, affected contracts may temporarily allow only the reduction or closing of existing positions. The placement, maintenance, or execution of certain orders may also be affected. The actual trading restrictions and order status are subject to the information displayed on the trading page. Users should adjust their trading activities as needed.

Position closing, order cancellation, and take-profit/stop-loss orders remain subject to their respective trading rules. The ability to close a position does not guarantee immediate execution or execution at the expected price.

Reduce-Only mode does not automatically close existing positions or suspend the liquidation mechanism. Users should continue to monitor their positions and margin levels.

Reduce-Only Mode on the Trading Interface:

Web:

App:

3. When Will Normal Trading Resume?

Affected contracts may automatically resume normal trading once the protection period ends. In some cases, trading may resume only when market conditions, market data, and other risk factors meet the requirements for resumption.

The protection period may be extended if abnormal conditions persist or recur, or if other trading restrictions remain in effect. Hotcoin does not guarantee that all trading functions will resume within a specified timeframe. The actual trading status and resumption arrangements are subject to the information displayed on the trading page and relevant announcements.

4. Risk Warning

These protective measures may affect order placement, execution, and trading opportunities. Users may miss trading opportunities due to restrictions on opening positions, canceled orders, or conditional orders that fail to execute. Market volatility or insufficient liquidity may also result in adverse price movements and losses on open positions.

Trading protection measures are part of Hotcoin's routine risk management practices and are intended to help manage risk. However, they cannot eliminate all risks associated with market volatility. Users should continue to monitor their orders, positions, and margin levels and adjust their trading activities accordingly.