Risk Management Mechanism

JuCoin implements a series of risk management measures to ensure stable platform operations in highly volatile markets.

Leverage Limits and Liquidation Mechanism

• Dynamic Leverage Adjustment: Adjust the leverage limits based on the volatility of memecoins.

• Liquidation Protection: Implement a tiered liquidation mechanism to reduce market impact caused by liquidations.

Security Funds and Risk Reserves

• Security Fund: Serves as compensation for unforeseen incidents.

• Risk Reserves: A portion of transaction fees is allocated to a risk reserve to cover losses during extreme market conditions.