1. The Platform’s Liquidation Risk Alert
HTX monitors all changes in all loan account assets, and calculates risk ratios and liquidation orders corresponding to such changes in assets. When the risk ratio of the User’s loan account reaches one hundred and twenty percent (120%), the User’s account will trigger a warning and in this case HTX will send an alert to the User by short text message and email.

2. Loan Account Liquidation
When the Risk Ratio of the User's loan account reaches one hundred and ten percent (110%), the HTX User’s account will trigger account liquidation, and the User will be notified thereof through the contact information provided by the User in advance.

3. Entrusted Orders of Liquidated Accounts.
When the User reaches the line of account liquidation, that is, its Risk Ratio is less than one hundred and ten percent (110%), HTX will restrict the User's trading and cancel its current entrusted orders, and the liquidation program will issue an account liquidation order, until the loan assets and unpaid interest are repaid, in which case the account liquidation will end. After the account is liquidated, the account shall be in a risk-free state, and in this case, the remaining assets in the account, if any, may be transferred out of the account.

Note:
(1) how is the price of entrusted orders of an liquidated isolated margin account calculated?
In principle, the price is calculated according to the state of the User’s account when the Risk Ratio thereof is one hundred percent (100%), and the price may be adjusted according to market situations after the order is placed.

(2) How is the due amount calculated and repaid in the event of “negative balance” of the account?
When the account balance is negative, i.e., the assets under the loan account is less than the sum of loan assets and interest payable thereon, then there will arise an amount of arrears payable: the amount payable = loan assets + interest thereon - assets under the loan account.

In particular, a portion of assets will be automatically returned when an account is forced into liquidation, and sub-accounts with negative balance will further contribute to the total negative account equity. During this period both Cross Margin and Isolated Margin will result in limited withdrawal capability until the outstanding balance and fees are repaid.