When the market fluctuates violently, if the positions cannot be liquidated at the liquidation price, resulting in the greater loss than the insurance fund, 58COIN will adopt an “apportioning” system to make the profitable accounts of the week to apportion the debt loss according to the profit ratio.
Accumulated Debt Loss – Insurance Fund = Debt Loss
Apportionment Coefficient = Debt Loss / Sum of the Earnings of All Gainers (single contract income).
Actual Apportionment = Profit (single currency contract) * Apportionment Coefficient.
At the time of settlement/delivery on Friday, the total loss of the liquidation order of BTC Delivery Contract is -10,000 USDT. The platform will first fill the loss with the insurance fund. If there is still a loss of -8,000 USDT that cannot been filled, then the gainers of BTC Delivery Contract will apportion this loss.
Assuming that the total profit of gainers is 40,000,000 USDT, the apportionment coefficient is 8,000 USDT /40,000,000 USDT = 1:5,000. If the total profit of the regular contract in this week is 1,000 USDT, then the apportionment amount is 1,000* (1/5,000) = 0.2 USDT.
Note: In order to ensure the minimum scope of the apportionment, the insurance fund and the loss of the multi-currency contract are calculated separately. That is, if the insurance fund of BTC six-month contract is enough, while the insurance fund of EOS six-month contract is insufficient, this loss will be apportioned by the EOS six-month contract instead of the BTC six-month contract, and the latter will not be affected.