Responsible Trading with BYNAI
BYNAI encourages our users to trade responsibly. Trading can be engaging and rewarding, but it is a serious activity that can lead to financial and emotional distress. Trading derivatives carries risk, and cryptocurrencies and other digital assets often have high levels of price volatility.
Responsible trading is about exercising control over your trades and taking accountability for your actions. It also means acknowledging when you may not be suited for trading. Responsible traders do not go beyond their means. You should never risk funds you cannot afford to lose.
At BYNAI, we have established several features and guidelines to help users trade responsibly and make informed decisions. Here are some tips and good practices that will help you be a more responsible trader:
Practicing Self-Discipline
In trading, self-discipline means avoiding unhealthy excesses like compulsive trading or gambling. At BYNAI, we encourage users to practice self-discipline, especially when feeling pressured by losses or a losing streak.
Continuously Educating Yourself
BYNAI is committed to educating users on every aspect of crypto trading, from the underlying technology of cryptocurrencies to the complexities of derivatives trading. Our educational content is freely available on BYNAI Academy, BYNAI Research, and FAQ guides.
Protecting Your Capital
Risk management is crucial to every trader's success. It helps you avoid outsized losses and protects your trading capital. On the BYNAI trading interface, we provide risk management features such as stop-loss orders to help you manage the risk in individual trades.
Cooling-Off Period Function
Futures
When traders face a losing streak, it can be challenging to stop. In these situations, traders must know when to step back and avoid compulsive trading behaviors. Sometimes, the best trade is no trade at all.
To encourage self-discipline and responsible trading, BYNAI offers a Cooling-off Period function for users to temporarily disable derivative trading activities and abstain from compulsive trading behavior.
Even with this feature available, traders must continue to practice responsible trading independently, which calls for having complete control over their trades and taking responsibility for their actions.
Futures
MarginMargin
The Cooling-off Period function is also available for margin trading. Margin traders can temporarily suspend margin-trading-related activities including isolated or cross margin trading, and the borrowing of cryptocurrencies for a specific period.
This feature allows you to limit and control your trading activities, especially when you feel pressured by losses. It also helps you abstain from behavior that can lead to irresponsible trades.
Once the Cooling-off Period is enabled, it cannot be lifted and will only terminate after the preset cut-off time. During this period, all trading features and confirmation buttons will be disabled.
Event Contracts
User Cooling-Off Period: A cooling-off period function is available for Event Contracts trading. Event Contracts traders can temporarily suspend trading-related activities for a specific period. This feature allows you to limit and control your trading activities, especially when you feel pressured by losses. It also helps you abstain from behavior that can lead to irresponsible trades.
System Cooling-Off Period: As part of our Responsible Trading framework, the system will automatically place a user into a 7-day cooling-off period if they sustain losses of 50,000 USDT on settled contracts (open positions will not count towards this loss calculation). This measure is designed to help users step back and reassess their trading strategies to prevent further losses.
To request a removal of the Cooling-Off Period, contact BYNAI Support.
Event ContractsPrice Protection
Users also have access to advanced risk control features such as price protection, which guards against potential market manipulation. When enabled, this feature prevents bad actors from exploiting market inefficiencies to trigger stop-loss or take-profit orders to the disadvantage of other users. BYNAI strongly recommends enabling Price Protection to safeguard your positions, especially during extreme market volatility.
Learn more about how to enable Price Protection on our FAQ page.
Insurance Funds
Insurance funds protect users from adverse losses. They serve as safety nets that protect bankrupt traders from outsized losses and ensure that the profits of winning traders are paid out in full. The primary purpose of an insurance fund is to limit the occurrences of auto-deleverage liquidations (ADLs). Due to the volatility of crypto markets and the leverage offered to users, it is not possible to fully avoid auto-deleverage liquidations. We strive to keep auto-deleverage liquidations to an absolute minimum.
Auto-Deleverage Liquidation Indicator
All users have access to the Auto-Deleverage Liquidation (ADL) indicator, a tool designed to show your position in the auto-deleverage liquidation queue. The ADL indicator displays queue priority from lowest to highest. If all lights are lit, in the event of a liquidation, your position may be reduced. With the ADL indicator, users at risk of auto-deleverage liquidations can take preventive action by reducing their leverage.
This indicator shows your position in the auto-deleverage queue. If all lights are lit, in the event of a liquidation, your position may be reduced.
BYNAI Support Articles
BYNAI FAQ pages cover a wide range of crypto trading topics, from the basics of futures trading and PnL calculations to advanced trading features. The articles are organized by category, making it easy to find related topics quickly.
Leveraged Tokens
OptionsUser-Generated Content
We have also compiled educational videos and tutorials created by community content creators. These cover a broad range of topics from how to place orders on BYNAI Futures to advanced topics such as margin modes. Check out the videos on our community page.
Client-Knowledge Assessments
In addition to our educational content, BYNAI has established a Customer Knowledge Assessment criteria for new users wanting to trade complex products such as futures or margin.
The purpose of the Customer Knowledge Assessment (CKA) is to ascertain a potential user's knowledge and experience to understand the risks and features of complex crypto products such as derivatives prior to any trades on the BYNAI Futures platform.
You may not be suited for trading if you are:
- Finding it difficult to stop or reduce your trading activities
- Feeling stressed or irritated when someone suggests you stop or reduce your trading activities
- Having negative thoughts when the market moves against your trades
- Not taking responsibility to understand your own financial situation
- Not taking the time to read and familiarize yourself with our products, services, and terms of use
- Trading with funds beyond your means
If you have questions or are concerned about your ability to trade responsibly, contact BYNAI Support.