1. What is a Perpetual Futures?
A perpetual futures is a type of cryptocurrency derivative with no expiration date. It allows users to go long or short using leverage to profit from price fluctuations.
2. How is the Futures Fee Calculated?
Fee Calculation Formula:
Fee = Trade Amount × Fee Rate
•Taker Fee Rate: 0.05%
•Maker Fee Rate: 0.03%
Fees are only incurred when opening, closing, or partially closing a position. Fees are not charged for unfilled or canceled orders.
3. What are Taker and Maker?
•Taker: Actively matches an existing order.
•Maker: Places an order that waits for other users to match it.
4. What is Funding Fee?
The funding fee is used to keep the perpetual futures price aligned with the spot price. It is generally charged every 8 hours at 08:00, 16:00, and 24:00 (SGT). Calculation Formula:
Funding Fee = Position Value (Actual Notional Value of the Position) × Current Funding Rate
The funding fee is settled entirely between users, and the platform does not charge any fee.
5. What are Cross Margin and Isolated Margin?
•Cross Margin: All available balance in the futures account can be used as margin to avoid liquidation. Cross margin allows for more flexible position management with lower margin requirements, but if liquidation occurs, all assets in the futures account will be lost.
•Isolated Margin: The margin allocated to a specific position is limited to a certain amount. If the margin for a position is insufficient to cover unrealized losses, that position will be liquidated. In high volatility and high leverage situations, isolated margin can be easily liquidated, but the loss is limited to the margin allocated to that position, without affecting the entire futures account balance.
6. What are Separate and Combined Positions?
•Separate Positions: Multiple independent positions in the same trading pair and direction are displayed separately.
•Combined Positions: Positions in the same trading pair and direction are merged into one.
[Instructions for Separate and Combined Position Operations (APP)]
[Instructions for Separate and Combined Position Operations (WEB)]
7. What is a Transfer?
A transfer refers to moving funds between the asset account and the futures account. The maximum amount is shown on the transfer page.
8. What is Margin?
Margin is the amount of funds required to participate in futures trading as a performance guarantee.
9. How is Margin Calculated?
•Cross Margin:
•Opening Margin = Face Value × Number of Futures × Opening Price / Leverage
•Position Margin = Opening Margin, which does not change with price fluctuations.
•Isolated Margin:
•Opening Margin = Face Value × Number of Futures × Opening Price / Leverage
•Position Margin = Opening Margin, which does not change with price fluctuations.
10. What is Forced Liquidation?
Forced liquidation occurs when the margin of a position is insufficient to maintain the current position. In isolated margin, the initial margin + additional margin will be completely lost. In cross margin, all assets in the futures account will be lost, which is referred to as forced liquidation.
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