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Finery Markets Risk management

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Who sets my trading limits on FM?

Both sides. You set a Gross Limit on your end, and FinchTrade sets a Counterparty Limit on theirs. The platform always applies the smaller of the two. You can change your limit at any time via FM GUI (Risk Management) or API.

On the native FinchTrade platform, the limit is set by FinchTrade only, based on your financials.

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What is Gross Free and why is it low?

Gross Free is your available trading capacity right now. It is not a monthly budget — it updates in real time.

Formula: Gross Free = Gross Limit − Exposure, where Exposure = MAX( |all long positions|, |all short positions| ).

If Gross Free is low, you have unsettled positions. Settle them and make sure the counterparty commits the transaction on FM — the limit will restore. See FM Risk Managementarrow-up-right.

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How does collateral work on FM?

On FM, FinchTrade may configure three margin thresholds for your account (as % of Gross Limit):

  • Initial Margin — minimum equity required to start trading. This amount stays locked.

  • Restricted Trading — if equity drops below this level, new trades that worsen your position are blocked.

  • Maintenance — if equity drops below this level, FinchTrade may liquidate your positions.

What do the risk statuses mean?

  • Low Gross Free — your available limit is below 10%. Consider settling.

  • Restricted Trading — equity below threshold. Only risk-reducing trades allowed.

  • Margin Call — equity critically low. Immediate top-up required.

  • Liquidation — FinchTrade may force-close your positions.

If you see any of these — settle open positions or deposit funds.

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What happens if I exceed my limit?

Behavior depends on the status level. At Restricted Trading, only risk-reducing trades go through. At Maintenance level, liquidation is possible.

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Why did the liquidity in my order book disappear?

On FM, visible liquidity equals your Gross Free. If your limit is $1M and you opened $800K in positions, you see only $200K in the order book. After settlement and commit, liquidity restores.

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Can I set limits on specific assets?

You can set a Gross Limit per asset to cap your position in a specific coin, or enable a Short Sales Ban to block short selling of a specific asset. Configure in Risk Management → Limits per Asset.

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Can I restrict which trading pairs are available?

Enable instrument whitelisting in Instruments → Whitelisting. Once enabled, all pairs are blocked by default — you manually approve the ones you need. This applies across all your counterparties.

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Can I temporarily stop trading with FinchTrade on FM?

Yes. In FM Risk Management, click Edit on FinchTrade's card → Disable Trading. Trading stops, settlements continue. Note: overnight rates still apply.

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How do I get notified about risk events on FM?

Go to Settings → Notifications. You can enable alerts (inbox and/or email) for: counterparty limit changes, Gross Free below 10%, margin breaches, and incoming settlements. See FM Notificationsarrow-up-right.

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