Coin--settled perpetual contracts are a kind of digital currency derivatives. Users can make a profit from the rising/falling of digital currencies prices by going long or selling short based on their own judgment. Similar to a margin spot market, its price is close to the price of the underlying reference index. The main mechanism for anchoring spot prices is the funding fee.
Coin--settled perpetual contracts has no delivery date. Users can always hold it. Coin--settled perpetual contracts are settled every 8 hours. After each settlement, the realized profit/loss and unrealized profits/losses will be transferred to the user account balance.
The contract leverage ratio is 1 ~ 100.
Margin ratio and liquidation：Margin Ratio = (Equity Balance / Used Margin) - Adjustment Factor
When margin ratio less than or equal to 0%, forced liquidation will be triggered.
Difference between Coin--settled perpetual contracts and the delivery contracts:
- Expiration date: Every delivery contract has a fixed maturity date and delivery price; perpetual Swap has no expiration date and will not be delivere Perpetual swap only has one contract per variety, there is no Weekly, Bi-weekly, Quarter and Bi-quarter；
Perpetual normally settles 3 times a day with a period of 8 hours，Futures will settle every day at 16:00 (GMT+8), the cycle is 24 hours, and on every Friday，the weekly-futures will be delivered at 16:00 (GMT+8) .
- Funding fee: Because there is no delivery date limit, perpetual swaps need to anchor the contract price to the spot price through the "Fundingrate mechanism"; The funding fee is charged every 8 hours. Users need to pay or charge the funding fee only when they hold a position at that time. If the position is closed before the fee is collected, there is no need to pay the funding fee.
When the funding rate is positive, the long positions will pay for the short positions; When the fund rate is negative, the short positions will pay for the long positions.
Funding rate settlement time (GMAT+8): 00:00、08:00、16:00。