In the ever-volatile world of cryptocurrency futures trading, risk management is a crucial part of long-term success. To help protect users from sudden liquidation events, WEEX Futures Pro has introduced the Automatic Margin Call feature โ a smart risk control mechanism available under Isolated Margin Mode.
This article explains how the feature works, why it matters, and how traders can activate it to manage their exposure more effectively.
What Is the Automatic Margin Call on WEEX?
The Automatic Margin Call is a safeguard for traders who operate in Isolated Margin Mode on the WEEX platform. When enabled, this function automatically transfers available funds from your futures account to support a position that is approaching liquidation. Its purpose is to maintain the original margin ratio set when the position was opened โ thereby reducing the chance of liquidation.
How the Feature Works
Here's a step-by-step explanation of how the automatic margin call operates:
- Manual Activation Required
- You must manually enable the feature when opening a position under Isolated Margin Mode.
- Real-Time Monitoring
- WEEX monitors the mark price (not market price) to assess risk accurately.
- Trigger Event
- If the positionโs margin ratio falls near the liquidation threshold, the system automatically intervenes.
- Fund Injection
- The system draws available funds from your futures wallet and injects them into the position's margin to stabilize it.
- Insufficient Balance Case
- If your wallet balance is insufficient to fully restore the margin ratio, the system still applies all available funds.
- Reset After Closing
- Once all auto-protected positions are closed, the feature resets and must be manually enabled again.
Key Formula for Margin Monitoring
The key metric used to determine whether a margin call is necessary:
Actual Margin Rate = (Position Margin + Unrealized PnL) รท Position Value
- If this rate drops below a safety threshold, the auto-margin call is triggered.
Key Considerations
Before using this feature, keep in mind:
Risk of Total Loss
It does not prevent liquidation in extreme market conditions and may result in full loss of available balance in your futures wallet.Available Only in Isolated Mode
The feature does not apply to Cross Margin Mode.Not Persistent
Once positions are closed, the feature doesnโt stay active โ youโll need to enable it again for future trades.
Benefits of WEEX Automatic Margin Call
Using this feature provides the following advantages:
Risk Management Automation
Adds funds automatically to prevent forced liquidations.Reduces Manual Monitoring
Especially helpful during high volatility periods or when youโre away from the screen.Selective Activation
Apply it only to specific positions based on your strategy.
Conclusion
The WEEX Futures Pro Automatic Margin Call is a powerful tool for reducing liquidation risk in volatile crypto markets. By proactively adding margin when needed, it buys time for your position to recover โ potentially saving your trade.
However, traders should remember:
This tool helps manage risk โ but it does not eliminate risk.
For traders who value flexibility and protection, enabling the Automatic Margin Call feature can be a strategic advantage on WEEX.