Legal analysis: fuse refers to the mechanism of setting a fuse price for the contract before the contract reaches the limit of price increase and decrease, so that the contract trading quotation can only be traded within this price range for a period of time. The purpose of the fuse mechanism is to let investors have a cooling-off period when the price fluctuates violently, to restrain the irrational excessive fluctuation of the market, and to facilitate the exchange to take certain measures to control market risks during the fuse period.

Legal basis: According to Article 1 of the Administrative Measures for Risk Control of China Financial Futures Exchange, these Measures are formulated in accordance with the Trading Rules of China Financial Futures Exchange in order to strengthen the risk management of futures trading, protect the legitimate rights and interests of futures trading parties and ensure the normal futures trading of China Financial Futures Exchange. According to Article 2 of the Administrative Measures for Risk Control of China Financial Futures Exchange, the risk management of the exchange is carried out in the following ways: margin system, price limit system, position limit system, large position reporting system, forced liquidation system, forced lightening system, settlement guarantee system and risk warning system. According to Article 3 of the Administrative Measures for Risk Control of China Financial Futures Exchange, exchanges, members and customers shall abide by these Measures.