# Risk control ### Risk Control Fluctuations in both the value of the collateral token and the token underlying the contract can lead to the potential liquidation of the position. Traders should vigilantly monitor both the position's profit and loss and any changes in the collateral's value. A trader is required to establish a maximum margin size for the counterparty, which would also be the highest feasible profit excluding fees. If the position reaches this maximum profit, further profit won't be generated. Opting for a larger counterparty margin also entails higher position maintenance fees. This is slightly different from the approach taken by other centralized exchanges. Those exchanges usually involve a contract borrow fee that is more closely tied to the position's value, influenced by its leverage. In contrast, Sudo's borrowing fee for perpetual contracts is predominantly determined by the potential maximum profit/loss of the position. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.sudo.finance/feature-details/risk-control.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.