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blofin-risk-manager

Risk management for BloFin trading — position sizing, leverage assessment, liquidation monitoring, risk scoring, and exposure analysis. Helps maintain disciplined trading within user-defined risk parameters.

personAuthor: jakexiaohubgithub
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BloFin Risk Manager

Comprehensive risk management skill for BloFin trading. Helps users size positions correctly, monitor liquidation risk, assess portfolio exposure, and maintain disciplined trading.

Risk Analysis Workflows

1. Pre-Trade Risk Assessment

Before any trade, evaluate the risk:

  1. Get account balance via get_balance — available equity
  2. Get instrument specs via get_instruments — contract value, max leverage
  3. Get current price via get_tickers
  4. Get existing positions via get_positions — current exposure
  5. Calculate and present:
Pre-Trade Risk Assessment
=========================
Instrument: BTC-USDT
Account Equity: $X,XXX
Available Margin: $X,XXX
Current Price: $XX,XXX

Proposed Trade:
- Side: Long
- Size: XX contracts
- Leverage: XXx
- Notional Value: $X,XXX
- Required Margin: $X,XXX
- Margin Usage After Trade: XX%

Risk Metrics:
- Estimated Liquidation Price: $XX,XXX
- Distance to Liquidation: XX%
- Max Loss (to liquidation): $X,XXX
- Risk per Account: XX% of equity

⚠️ Warning: [if margin usage > 50% or risk > 5% of equity]

Example prompts:

  • "Should I open a 10x BTC long with 100 contracts?"
  • "What's the risk if I short ETH with 5x leverage?"
  • "How much can I lose on this trade?"

2. Position Sizing Calculator

Calculate optimal position size based on risk tolerance:

Use this formula:
Max Position Size = (Account Equity * Risk%) / (Entry Price * Contract Value * (1/Leverage))

Where Risk% is the maximum percentage of equity to risk (default 2%).

Steps:

  1. Ask user for risk tolerance (default: 2% of equity per trade)
  2. Get account equity from get_balance
  3. Get contract specs from get_instruments
  4. Get current price from get_tickers
  5. Calculate recommended position size at different leverage levels

Present as a table:

| Leverage | Position Size | Notional | Required Margin | Liquidation Distance | |----------|--------------|----------|-----------------|---------------------| | 5x | XX contracts | $X,XXX | $XXX | XX% | | 10x | XX contracts | $X,XXX | $XXX | XX% | | 20x | XX contracts | $X,XXX | $XXX | XX% |

Example prompts:

  • "How many BTC contracts should I buy?"
  • "Calculate position size for 2% risk on ETH"
  • "What's a safe position size for SOL-USDT?"

3. Liquidation Monitoring

Monitor liquidation risk for all open positions:

  1. Get all positions via get_positions

  2. Get mark prices via get_mark_price for each position

  3. For each position, calculate:

    • Distance to liquidation: |markPrice - liquidationPrice| / markPrice * 100%
    • Unrealized PnL and PnL ratio
    • Effective leverage (notional value / margin)

  4. Risk classification:

| Distance to Liquidation | Risk Level | Action | |------------------------|------------|--------| | > 30% | Low | Normal monitoring | | 15% - 30% | Medium | Consider reducing position or adding margin | | 5% - 15% | High | Strongly recommend reducing position | | < 5% | Critical | Immediate action required — reduce or close |

Example prompts:

  • "Am I at risk of liquidation?"
  • "Check my liquidation distances"
  • "Which positions are most dangerous?"

4. Portfolio Exposure Analysis

Evaluate overall portfolio risk:

  1. Get all positions via get_positions
  2. Get account balance via get_balance
  3. Calculate:
    • Total notional exposure (sum of all position notional values)
    • Net exposure (long notional - short notional)
    • Gross leverage (total notional / equity)
    • Directional bias (net long vs net short)
    • Concentration risk (% of exposure in single instrument)

Present:

Portfolio Exposure Report
=========================
Total Equity: $X,XXX
Total Notional: $XX,XXX
Gross Leverage: X.Xx
Net Exposure: $X,XXX (long/short biased)

Position Breakdown:
| Instrument | Side | Notional | % of Total | Leverage |
|------------|------|----------|-----------|----------|

Concentration: XX% in [top instrument] ⚠️ (>30% = concentrated)

Example prompts:

  • "What's my total exposure?"
  • "Am I too concentrated in BTC?"
  • "Show my portfolio risk breakdown"

5. Leverage Safety Check

Evaluate whether current leverage settings are appropriate:

  1. Get leverage info via get_leverage_info for each held instrument
  2. Compare against:
    • Account size (smaller accounts should use lower leverage)
    • Market volatility (high volatility = lower leverage recommended)
    • Number of open positions (more positions = lower per-position leverage)

General leverage guidelines:

| Account Size | Recommended Max Leverage | Rationale | |-------------|------------------------|-----------| | < $1,000 | 5x | Limited margin buffer | | $1,000 - $10,000 | 10x | Moderate buffer | | $10,000 - $100,000 | 20x | Experienced trader range | | > $100,000 | Per strategy | Professional risk management |

Example prompts:

  • "Is my leverage too high?"
  • "What leverage should I use for a $5,000 account?"
  • "Review my leverage settings"

Risk Management Rules

  1. Never encourage excessive risk — if a user wants 100x leverage on their full balance, advise against it clearly
  2. Default risk per trade: 1-2% of account equity
  3. Always show liquidation price when discussing leveraged positions
  4. Warn about correlation risk — multiple positions in similar assets (e.g., BTC + ETH) are correlated
  5. Recommend stop losses for every position
  6. Account for fees — they reduce margin and affect liquidation price
  7. Cross margin warning — in cross mode, one liquidation can cascade to affect all positions