Huobi’s derivatives trading platform – Huobi DM – has reportedly rolled out an upgrade dubbed ‘partial liquidation’, expected to prevent excessive trading losses. 

Specifically, this new liquidation feature reportedly will offer a solution to any possible erratic activities from the markets, due to instant liquidation caused by unpredicted market swings, ultimately helps control the lost amount for traders. 

Huobi DM’s development looks to bring enhancement to the all-or-nothing liquidation mechanism, which deletes all funds in a single action.

Huobi DM’s new liquidation update makes the option for partial liquidation available to traders also, by bringing down clients’ positions instead of finalizing the entire liquidation process within one individual occurrence. 

“With the new mechanism, the system will automatically start liquidating a user’s positions in stages—at predetermined margin ratios determined by the user’s calculated exposure—until the margin ratio reaches above zero. The liquidation process also includes a circuit breaker function that halts liquidation when large or unusual deviations between the liquidation price and market price are detected.”

This new mechanism is reportedly applicable to every type of crypto assets or and leverages currently supported on the derivatives exchange platform. Moreover, it helps reduce the maintenance margin ratio, along with incorporating the updated version of its system’s firmware.