Description Of Account Risk Control Status

When using margin trading, your account risk will be affected. For the ease of understanding whether your account is currently at risk of being liquidated, you may view the risk control status of your account by clicking on the financing status under "Assets" in the Longbridge App.

Applicable versions: 4.0.1 and higher

Risk control status

An indicator to measure the risk status of your account. The risk control status is divided into 4 levels: Safe, Medium, Warning, Dangerous. (The examples in the following figures are for reference purposes only)

Safe

No financing is used.

Medium

Financing has been used and equity assets are greater than the initial margin requirement; according to the current leverage multiples of the account, the higher the leverage multiple currently being used, the higher the risk.

Warning

Equity assets are less than or equal to the initial margin requirement and greater than the maintenance margin. In this case, the purchasing power has been exhausted and no new positions may be opened; please pay attention to position risks. If a "margin call" amount appears in the account, please promptly replenish funds or sell stock to cover the outstanding amounts.

Dangerous

Equity assets are less than or equal to the maintenance margin requirement. In this state, your account must deposit sufficient margin or actively liquidate some of its positions by 2:00 p.m. on the deadline date according to the "margin call" value; otherwise your account will be forced to liquidate. The securities broker may determine, at their own discretion, the stock to be liquidated, as well as the price, quantity and time thereof. Please pay attention to the risk control status, leverage and other indicators.

Explanation of field

• Initial margin requirement: The margin required for margin trading is calculated on the basis of the initial margin rate of the market value of the stock positions. When the equity assets are less than the initial margin requirement, the purchasing power is exhausted and no new positions may be opened
• Maintenance margin requirement: maintenance margin requirement = market value of the account's positions × the maintenance margin rate of the account's asset positions. When equity assets are less than the maintenance margin requirement, the account's "dangerous" status will be triggered and some stocks will need to be liquidated or funds deposited.
• Equity assets = Total value of securities + total value of cash + total value of excess funds facility