# 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.
