To better serve our users, Hoo.com adopts Partial Liquidation mechanism which matches the trader who made profit and the trader who lost money based on factors like and profit ratio.
Under this mechanism, most of the users’ rights are protected. The assets flow will be more transparent and instant.
1. Overview of Partial Liquidation
When a trader’s position is liquidated, the position is taken over by Hoo liquidation engine. If the liquidation cannot be filled by the time the mark price reaches the bankruptcy price. The price at which a trader's positions are closed out is the bankruptcy price of the initial liquidated order
2. Priority Partial Liquidation Ranking
At all times, your position in the queue is shown by an indicator. This indicator represents your priority in the queue in 20% increments:
- Green: 0%-40%
- Yellow: 40% - 80%
- Red: 80%-100%
In the above example, all “lights” are lit, which would mean your position is in the top percentile. In the case of a liquidation that is not able to be caught in the market, you may be partially liquidated.
Priority Ranking Calculation
The priority is calculated by profit and leverage. More profitable and higher leveraged traders will be partially liquidated first.
The ranking calculation is as follows:
Ranking = PNL Percentage * Effective Leverage (if PNL percentage > 0)
= PNL Percentage / Effective Leverage (if PNL percentage < 0)
Effective Leverage = abs(Mark Value) / (Mark Value - Bankrupt Value)
PNL percentage = (Mark Value - Avg Entry Value) / abs(Avg Entry Value)
Mark Value = Position Value at Mark Price
Bankrupt Value = Position Value at Bankruptcy Price
Avg Entry Value = Position Value at Average Entry Price
The system splits these positions by longs and shorts and ranks the positions from highest to lowest.
Dec. 24, 2019