Introduction to the Auto-Deposit Margin Feature

When managing Futures Grid trades or holding open positions, market volatility often presents a dilemma: balancing the desire for high capital efficiency with the fear of sudden liquidation.

To address this challenge, we've introduced the Auto-Deposit Margin feature. Think of it as an "intelligent airbag" for your grid bots, automatically intervening when risk levels rise and providing your account with the necessary buffer.

1. About Auto-Deposit Margin

Auto-Deposit Margin is an advanced capital management feature. Once enabled, the system continuously monitors the margin ratio of your Trading Bots account in real-time. If the ratio hits the default risk threshold of 70%, the system automatically transfers funds from your USDT-M futures account to your Trading Bots account, supplementing your margin, reducing risk, and preventing forced liquidation.

This process is fully automated, eliminating the need for manual intervention. It's a hands-off solution for traders who want to avoid the fatigue of constantly monitoring the market due to the fear of liquidation.

2. Application Scenarios

This feature is ideal for the following typical trading situations:

  • Maximizing Capital Efficiency: You're running a Futures Grid and want to maximize returns without locking up too much idle capital in your Trading Bots account while still being cautious about potential market pullbacks.
  • Unattended Trading: During high uncertainty (e.g., major news releases), you may be unable to monitor the markets continuously. Automation allows you to manage risk without needing to monitor 24/7.
  • Precision Risk Management: You prefer setting a clear line of defense, allowing the system to automatically intervene at a specific critical point, rather than passively waiting for liquidation.

3. Setup Guide: 3 Simple Steps

Get started with the Auto-Deposit Margin feature in just three easy steps (using the HTX app as an example):

  • Set a Limit: When creating a Futures Grid bot, go to Advanced Settings and set an "Addition Amount Limit" in the feature configuration. This is the maximum amount you wish to allocate to your grid bot. When the threshold is triggered, funds will be transferred automatically from your USDT-M Futures account until the margin ratio returns to the required level or the preset limit is met. It is recommended to set a limit that does not exceed the available balance in your USDT-M Futures account to avoid affecting other positions.
  • Wait for Activation: Once configured, the system monitors the market for you. If market conditions worsen and your margin ratio hits the set threshold (e.g., 70%), the fund transfer will be executed automatically.
  • Flexible Adjustment: If you find your initial limit too high or low, you can adjust it anytime through the Adjust Margin or Edit Parameters pages to stay aligned with market conditions.

4. Case Study

To better understand how this works, let’s consider an example. Tom holds a 1,000 USDT BTC/USDT long position. He wants to avoid liquidation without locking up too much capital upfront, so he sets an Addition Amount Limit of 300 USDT.

First Trigger: Overnight, the market drops, and the margin ratio hits 70%. The system automatically triggers a 30 USDT transfer, bringing the margin ratio below 50%. Tom's account is protected while he sleeps.

Second Trigger: The next morning, the market dips again. As the margin ratio hits 70% once more, the system activates and adds another 50 USDT to bring the margin ratio quickly below 50%, continuing to mitigate the risk of liquidation.

Subsequent Triggers & Limit Mechanism: This process repeats whenever the 70% threshold is met, until the cumulative additions reach the 300 USDT limit. Once the limit is reached, the feature pauses. If the market continues to decline, the system will no longer intervene, and manual action will be required to avoid liquidation.

5. FAQ & Risk Disclosures

• Relationship with Manual Deposits: Auto-Deposit and manual margin additions can be used simultaneously. If the automatically added funds are insufficient to mitigate risk, you can still manually add margin at any time.

• What Happens if the Amount Exceeds Your Set Limit

If your limit is set to 2 USDT but 5 USDT is needed to mitigate the risk, the system will strictly follow your settings and transfer only 2 USDT, without exceeding the set limit.

• Potential Risks: Enabling this feature places additional demand on your USDT-M Futures account. Transferring funds out of your USDT-M Futures account may increase the liquidation risk for other open positions. Additionally, in extreme market conditions, the maintenance margin ratio may drop to the liquidation threshold so rapidly that the Auto-Deposit Margin feature is not triggered in time.

In summary, Auto-Deposit Margin is a powerful risk management tool that provides a critical buffer for your grid bots. When used wisely, it helps you pursue higher returns while managing the risk of capital loss during market volatility.

 

 

 

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