Cryptocurrency exchanges often face challenges in managing liquidation risks due to complex risk limit structures and lack of clear management standards. KuCoin has introduced a new risk management framework to address these issues, offering a more transparent and efficient approach. By implementing a nonlinear model for position sizing based on capital and asset price, KuCoin aims to balance risk control and user interests. The model adjusts margin rates dynamically, ensuring scalability and stability for users of varying capital sizes. Additionally, KuCoin's cross-margin system incorporates factors like liquidity and leverage to optimize risk management. The system's flexibility and adaptability provide a user-friendly experience, unlike traditional exchanges with rigid risk limit models. Overall, KuCoin's innovative approach sets a new standard for risk management in the cryptocurrency industry. Read more AI-generated news on: https://app.chaingpt.org/news