Isolated Margin Trading Rules

1. General Provisions

1.1 These rules are formulated to ensure fairness, openness, and impartiality in margin trading and loans of digital assets. They aim to maintain market order and protect users' rights.

1.2 They serve as supplementary provisions to the Margin Trading Service Agreement.

1.3 These rules apply to margin loans and isolated margin trading on Websea. For matters not covered, the User Agreement and other relevant provisions of Websea apply.

2. Margin

2.1 Users must provide separate margin for each trading pair they engage in with isolated margin trading.

2.2 Upon requesting a margin loan, the system creates an Isolated Margin Account for each trading pair, with net assets in these accounts serving as the margin.

3. Margin Loan

3.1 The maximum amount a user can borrow is determined by the platform’s total allowable margin loan amount and its risk control rules. The formula is: Maximum Margin Loan Amount = Net assets in an Isolated Margin Account * (maximum margin multiples - 1) - outstanding Margin Loan.

3.2 Interest accrues immediately after the borrowed assets are delivered to the user's Isolated Margin Account. These assets can be used for isolated margin trading.

4. Interest

4.1 The single interest rate is based on the daily rate, calculated from the actual borrowing time. Interest is auto-calculated daily at 0:00 (GMT+8).

4.2 Users can repay debts early, with interest calculated based on actual borrowing days, once daily at 0:00 (GMT+8). Interest is prioritized over principal during repayment.

4.3 Outstanding loan interest is factored into the Risk Ratio calculation. Unpaid interest can reduce the Risk Ratio, potentially leading to forced liquidation. Regular interest payment or sufficient balance deposit is advised.

5. Repayment/Candy and Airdrop

5.1 Users can select which Margin Loan order to repay. Repayment is considered as interest first, then principal. Once fully paid, no further interest is calculated.

5.2 Airdrops from underlying digital assets of any Margin Loan are not permitted for users.

6. Risk Control

6.1 Only net assets in the Isolated Margin Accounts can be used as margin; assets in other accounts are excluded.

6.2 The platform monitors the Risk Ratio in real-time and takes measures accordingly. The Risk Ratio formula includes market value conversion and total liabilities.

6.3 At a 150% Risk Ratio (Warning Line), users receive a warning to adjust their position.

6.4 At a 110% Risk Ratio (Liquidation Line), forced liquidation is triggered, with proceeds used to repay Margin Loans. In case of insufficiency (Wearing), the platform has the right to recourse.

6.5 Users should be mindful of margin trading risks and adjust their positions to avoid forced liquidation. Losses from forced liquidation are the user's responsibility.

6.6 The platform manages the total market value of Margin Loans, suspending new loans if the pre-set maximum is reached.

6.7 Adjustments to the maximum total amount of Margin Loans and Margin Conversion Ratio are based on market conditions and risks.

6.8 After forced liquidation (Wearing), the platform may restrict transfers and withdrawals until outstanding debts are cleared.

6.9 Transfers out of an Isolated Margin Account are only allowed if the Risk Ratio exceeds 200%, and the ratio must remain above this threshold after the transfer.