Solvency Measures

Fostering an Orderly Market

Optio maintains a set of automated procedures to foster an orderly market and maintain a solvent capital base through effective, proven risk management techniques.

Auto - Liquidation Engine:

  • Accounts with insufficient capital to maintain the risk level of the position are reduced when possible and completely liquidated when an incremental reduction is infeasible.

  • All accounts are risk-monitored in real time.

Insurance Fund:

  • Optio Maintains an insurance fund to cover accounts that go through auto-liquidation but end up with negative balances.

  • This fund is replenished through liquidation fees that accrue to accounts that are liquidated successfully without going negative.

Auto - Deleveraging:

  • In the event that the insurance fund is exhausted, Optio will automatically de-leverage the highest levered winning accounts for a trading session in order to mitigate systemic risk though reduction of leveraged losing positions.

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