Aegis progressive rescue
Protection happens in stages, not all at once.
Most venues have one answer to margin stress: close the position. Aegis works through a published sequence that tries to keep the position — and the capital behind it — alive, and reaches the backstop only when every earlier stage has been exhausted.
- Six stages, in order
- Minimum reduction
- Competitive auction
- Backstop last
The sequence
Capital that stays with the user, stage by stage.
Remaining user capital
- 01WarnThe account is notified as the margin ratio approaches the threshold, with the distance to liquidation shown.
- 02CancelOrders that would increase risk are cancelled; protective orders stay in place.
- 03CollateralizeEligible collateral already held in the account is applied, subject to published haircuts.
- 04ReduceOnly the minimum position needed to restore maintenance margin is reduced.
- 05AuctionAnything still required transfers through a competitive auction among qualified bidders.
- 06BackstopThe protection fund and, under published conditions, auto-deleveraging act only as the final layer.
A portfolio under stress moves through warn, cancel, collateralize, reduce, auction and backstop. The bar shows the capital that remains with the user and changes only when a stage actually reduces the position.
Stages
What each stage does, and what it protects.
- 01Warn
- The account sees the distance to liquidation and the exact change that would restore comfort — margin, a hedge or a reduction.
- 02Cancel risk-increasing orders
- Resting orders that would add exposure are cancelled. Protective orders — stops, reduce-only and hedges — remain.
- 03Apply eligible collateral
- Collateral already in the account is applied under published haircuts before any position is touched.
- 04Reduce the minimum
- Only the smallest position reduction that restores maintenance margin is executed, chosen by the account’s pre-declared path.
- 05Competitive auction
- Anything still required transfers through an auction among qualified bidders, so the price is competed rather than dictated.
- 06Backstop
- The protection fund and, under published conditions, auto-deleveraging act last. Each use is recorded with the evidence that led to it.
The auction
Competition instead of a forced price.
A liquidation that must transfer risk should not hand that risk to a single counterparty at a price nobody checked. Qualified bidders compete for the transfer inside a bounded window, and the result is written with the same evidence as any other fill.
Competition matters most in the conditions where liquidations cluster: thin books, fast moves and correlated stress. A competitive transfer protects the remaining capital of the account being reduced, and it protects everyone else from a cascade.
- Bidders qualify on capital, quoting behavior and settlement history.
- The window is short, bounded and published per market.
- Results are recorded with the reference price at transfer time.
- Auto-deleveraging is used only when the auction and the fund cannot absorb the transfer.
AEGIS
Unified risk graph
Select a risk dimension
Collateral · Volatility · Liquidity · Concentration · Correlation · Counterparty
Controls
What you can set in advance.
- Reduction path
- Which positions are reduced first when maintenance margin is breached.
- Collateral order
- Which eligible assets are applied first, and which are never applied automatically.
- Protective orders
- Stops and reduce-only orders that survive the cancel stage.
- Agent limits
- Automation stops before the rescue sequence begins; a Cortex kill command revokes every permission.
- Notifications
- Where warnings arrive, and how early relative to the maintenance threshold.
Margin modes, haircuts and liquidation mechanics are described on the risk page and in the trading and leverage risk disclosure.
Questions we expect.
Does progressive rescue mean my position cannot be liquidated?
No. It means the sequence tries the least destructive action first. If the market moves far enough and fast enough, positions are still reduced or closed, and losses can exceed the collateral applied.
Who pays for the auction shortfall?
The protection fund, under published rules. It is a separate resource and is never funded by customer collateral. See the liquidity network.
When does auto-deleveraging apply?
Only under the published conditions, after the auction and the fund. Every affected account can see its position in the queue before the event.
Can I see this before it happens?
Yes. Aegis previews the margin effect and liquidation distance of an order before you confirm it, and streams both while the position is open.
See it in context.
The rescue sequence is one part of the Net Outcome System. The rest reduces the cost of getting in, holding and getting out.