Account Tiering

Account tiering is a risk management framework that assigns different trading privileges and limits to users based on their verification status, capital size, and historical behavior. Higher tiers often allow for larger positions and greater leverage, but they also require more stringent compliance and collateral requirements.

This approach ensures that riskier, high-volume participants are held to higher standards, protecting the platform from potential abuse. It also enables a personalized approach to risk, where users are granted access based on their demonstrated capability to manage exposure.

Account tiering is essential for scaling platforms while maintaining security and regulatory compliance.