The fund risk rate is the fund safety rate. If it is investment, it is the risk rate of leverage.

Risk rate is often used in futures markets and financial markets to describe the use of investors' capital accounts.

Risk rate = position margin/customer equity multiplied by 100%, where customer equity is equal to the available funds in the account + initial trading margin + floating profit and loss.

When a customer's risk rate exceeds 100%, the futures brokerage company has the right to forcefully close the customer's position.

To put it simply: risk rate = position ratio. The larger the position, the higher the risk rate, and the smaller the position, the lower the risk rate.

Risk rate = position ratio

Risk rate = total margin for all positions (positions) of the customer/customer’s equity × 100% according to the margin ratio specified by the brokerage company.

Risk control:

When the risk rate is <100%, the brokerage company will accept the customer's trading instructions based on the amount of funds available to the customer.

When the risk rate = 100%, the brokerage company will no longer accept new trading orders from customers.

When the risk rate is >100%, the brokerage company will no longer accept the trading instructions reported by the customer, and will issue a margin call notice to Party B as stipulated in the contract. For example: the customer fails to pay in time 30 minutes before the market opens on the next trading day. When a margin call is made, the brokerage company forcibly closes the position on behalf of the client until the client's risk rate is <100% and the available funds are >0.