Overview

Your trading account may be temporarily restricted when the Mark-to-Market (MTM) loss reaches a predefined risk threshold, and the available margin becomes insufficient to support open positions.

This is an automated risk management process designed to protect accounts from excessive losses and prevent negative balances.

What Happens During This Process?

When the MTM loss increases significantly and available margin falls below the required level:

• The system may initiate automatic liquidation of open positions.

• New order placement may be temporarily restricted.

• Position closing or certain trading activities may be unavailable until the liquidation process is completed.

• Account access for trading functions is restored automatically once margin conditions return to acceptable levels.

Why Does This Happen?

This mechanism helps:

• Limit further losses during high market volatility.

• Protect accounts from entering a negative balance.

• Maintain overall risk management standards on the platform.

Is This a System Error?

No. This is a standard automated risk management feature and is triggered based on account margin and MTM loss conditions. The process is carried out according to predefined risk parameters and does not indicate a system malfunction.

What Should I Do?

If your account has been temporarily restricted due to MTM loss:

1. Wait for the liquidation process to complete.

2. Monitor your account margin and balance.

3. Once margin requirements are met, trading functionality will be restored automatically.

If you have questions regarding a specific liquidation event or account restriction, please contact Cosmic Support by raising a support ticket.