How to open a contract cooling-off period on DigiFinex

DigiFinex's Contract Cooling-Off Period allows traders to suspend their futures contracts, reassess trading strategies, and manage risks by selecting a duration of 1 hour, 4 hours, or 24 hours.

Nov 25, 2024 at 08:40 am

How to Open a Contract Cooling-Off Period on DigiFinex

Introduction
DigiFinex, a reputable cryptocurrency exchange, offers a unique feature called the Contract Cooling-Off Period. This mechanism allows traders to suspend their futures contracts for a specified duration, providing them with an opportunity to step back, reassess their trading strategies, and manage risks effectively.

Prerequisites
Before initiating a contract cooling-off period, traders must ensure the following prerequisites are met:

• Hold an active futures contract on DigiFinex
• Possess sufficient funds in their trading account to cover the liquidation threshold of the contract
• Ensure the contract is eligible for the cooling-off period (contracts close to expiry or with substantial open interest may not be eligible)

Step-by-Step Guide

1. Log into DigiFinex: Access the DigiFinex platform and sign in to your trading account using your registered credentials.
2. Navigate to the "Futures" Section: Once logged in, click on the "Futures" tab located at the top of the screen.
3. Select the Relevant Contract: From the list of available futures contracts, choose the contract you wish to suspend. Ensure you have an active contract with sufficient margin.
4. Open the Contract Details Page: Click on the "Details" button associated with the selected contract to view the contract details page.
5. Locate the "Cooling-Off" Option: Scroll down the contract details page and find the "Cooling-Off" section. Click on the "Request" button to initiate the cooling-off period.
6. Set the Cooling-Off Duration: A pop-up window will appear, allowing you to specify the duration of the cooling-off period. Select the desired duration (1 hour, 4 hours, or 24 hours) from the drop-down menu.
7. Confirm the Request: Review the details of your request, including the contract, duration, and time of suspension. Once satisfied, enter your 2FA code and click on the "Confirm" button to complete the process.
8. Verify Successful Activation: The contract cooling-off period will be applied successfully if all the prerequisites are met and the request is processed without errors. You can verify this by checking the "Status" column in the "Contracts" section, which will now display "Cooling-Off" for the selected contract.

Important Note
During the cooling-off period, the following restrictions apply:

• No new positions can be opened for the affected contract
• Existing positions within the cooling-off contract will be closed at the market price if the liquidation price is reached
• The cooling-off period cannot be canceled or shortened once initiated

Conclusion
The contract cooling-off period on DigiFinex provides a valuable mechanism for traders to manage their futures trading activities more effectively. By utilizing this feature, traders can pause their contracts, reassess their strategies, and safeguard their capital against potential losses. Remember to carefully consider the eligibility criteria and duration of the cooling-off period before activation to ensure it aligns with your trading objectives.