The fuse mechanism, also known as "fuse mechanism", is a trading system in futures trading. When the volatility range touches the specified number of points, the transaction will stop for a period of time, or the transaction can continue, but the price range cannot exceed the specified number of points. The fuse mechanism can be divided into: 1, the primary market fuses, that is, the market drops by 7%; 2. The secondary market is blown, which means that the market is down13%; 3. The melting of the tertiary market means that the market has fallen by 20%.

The fuse mechanism provides early warning for the trading risks in the stock index futures market, effectively prevents the suddenness and severity of the risks, gains thinking time and operation time for controlling the trading risks, helps to eliminate the liquidity decline caused by outdated prices in the futures market, and provides institutional guarantee for gradually dissolving the trading risks.