Risk Level | Grade |
---|---|
<100% | Safe |
100%-125% | Focuses |
125%-150% | Alert |
150%-200% | Margin Call |
>200% | Forced Liquidation |
The formula for calculating the risk level of the new version is as follows:
Risk level=Margin/Net Asset
Margin=∑stock market value*(1-stock collateral rate) + ∑stock short position market value (positive) * stock margin rate
Eg. If my position is as follow:
Long position: Tesla (TSLA) stock with a market value of 10,000 collateral rate 65%
Apple (AAPL) stock with a market value of 20,000 collateral rate 70%
Short position: Netflix (NFLX) stock with a market value of 20,000 stock margin rate 100%
Then my margin is 10000*(1-65%) + 20000*(1-70%) + 30000*100%=39500
If my net assets is 50000
Then the risk level is 39500/50000=79% and the risk level is safe
If the user enters the range of the risk level of margin call, we will promptly notify the user to add deposit or close the position immediately to reduce the risk, and make sure it is less than 150%., and the risk level is below the margin call level to avoid forced liquidation.
The collateral rate and margin rate can be viewed by clicking on the upper right corner of the stock details page.
IOS 2.0.50, Android 1.9.52 and earlier versions adopt this risk level:
Risk Level | Grade |
---|---|
<80% | Safe |
80%-100% | Focuses |
100%-110% | Alert |
110%-130% | Margin Call |
>130% | Forced Liquidation |
IOS 2.0.50 and Android versions before 1.9.52 have been adjusted on the basis of this formula, but the risk level is not affected.