⚖️Risk Management

Effective risk management is essential for the smooth operation of any derivatives tool. It plays a pivotal role in maintaining platform stability and protecting traders' investments. This involves implementing a series of rules, procedures, and protective measures aimed at reducing risks and shielding the trading environment from the volatility of extreme market conditions.

PnL Limit

The HunteX PnL (Profit and Loss) cap acts as a precaution against a trader earning excessively due to extreme market conditions or an oracle malfunction. This limit sets a maximum threshold that a trader's PnL cannot exceed. If a trader closes a position and their PnL at that moment is above the set limit, they will receive the full profit earned within the established limits.

Position Size, $	Max. PnL, $	Max. ROI, %
5,000	500	10,000
10,000	150	1,500
30,000	411	1,370
50,000	625	1,250
75,000	855	1,140
100,000	1,040	1,040
120,000	1,140	950
150,000	1,290	860
175,000	1,400	800
200,000	1,440	720
250,000	1,625	650
300,000	1,800	600
350,000	1,890	540
400,000	2,000	500
450,000	2,025	450
500,000	2,050	410
550,000	2,090	380
600,000	2,040	340
650,000	2,015	310
700,000	2,030	290
750,000	1,950	260
800,000	1,920	240
850,000	1,870	220
900,000	1,800	200
1,000,000	1,800	180

Max. ROI can be reached when you use max. leverage for your position.

For Example When you use the max. x1,000 leverage for your $10 margin – which gives you a $10,000 position – the max. The ROI you can hit is 1,500% (or $150 in explicit terms).

We have added a risk management line that can be enabled in the settings (displayed as a blue line). This feature indicates when an order will be closed due to risk management status.

When the risk management line is reached, the order is automatically closed.