If you are in maintenance margin breach, Thalex will start its risk mitigation process to remedy the breach. In principle, this process consists of several steps which will automatically stop once your margin balance is restored to the initial margin requirement:
- A partial or whole liquidation of your position
- A liquidation auction of your position
- Use of the insurance fund to cover any remaining losses
- As a final backstop, socialized losses.
Note: During the risk mitigation process, Thalex will take control of your account to reduce your risk exposure. You can no longer enter any new orders and all your open orders will be automatically cancelled. Control of your account will be returned to you once your margin balance is restored to the initial margin requirement.
For more information on the risk mitigation process and the other procedures which Thalex may initiate, please consult the Rulebook.