Table of contents
1 Introduction to the contract
2 How to place an order
3 Fee rate
4 Margin and profit and loss calculation
5 Funding rate
6 Mark Index
7 Maintenance Margin Rate
8 Liquidation liquidation and risk protection fund
9 ADL Automatic Lighten Up
10 Risk Limit
1.Introduction to U-margined perpetual contracts
U-margined perpetual contract is a futures contract that uses USDT as margin and can be held forever without delivery. Users can choose to buy long contracts or sell short contracts to obtain the benefits of rising/falling digital asset prices by judging the rise and fall. U-margined perpetual contracts use USDT for pricing and settlement, which is convenient for users to directly calculate returns in U.S. dollars and fiat currencies, while allowing users to use up to 125 times leverage to amplify their own income.
U Standard Perpetual Contract Features:
- Priced and settled in USDT, profit and loss can be directly linked to USD
- Perpetually held, no expiration period and delivery time, and the settlement of capital costs allows the contract price to anchor the spot price
- Standard face value, 1 contract corresponds to a fixed amount of digital assets
- Real-time settlement, the user's unrealized profit and loss are included in the available margin in real time, improving the flexibility of the use of funds
2.How to place an order
- Stop-limit
Under the Stop-limit, the user's order will not be reported to the trading system in real time. Only when the market price reaches the set trigger price, the user's planned order will be converted into a limit order and reported to the trading system. The limit order of the system will be matched and traded with the market according to the principle of price priority and time priority.
This means that the user's planned order may not be executed immediately after it is triggered. Instead, it is necessary to compare the order price set by the user with the market conditions at the time of the order entry, and the transaction can only be done when the user's order is accepted by the market.
- Regular
Under the Regular, the user's order will be reported to the trading system in real time, and the trading system will match the user's order price with the market according to the principle of price priority and time priority.
2.1 Price limit: An order placed at a specified price may be filled immediately, partially filled or not filled according to the order price and market conditions.
2.2 Market price: immediate transaction at the best market price.
2.3 Competitor price: An order placed in the first tier price of the counterparty market. For example, when buying, it will use a sell one price order, and when selling, it will use a buy one price order.
2.4 Queuing price: An order placed in the first tier price of one's own handicap. For example, when buying, it will use a buy-one price order, and when selling, it will use a sell-one price order. Generally, it cannot be executed immediately.
2.5 Overprice: An order that exceeds the first tier price of the counterparty's market can generally be executed immediately
- order execution strategy
When placing an order, a trader can set the effective time limit and execution method of the order by selecting different order execution strategies. Order execution strategies allow traders to have more control over their trading strategies.
3.1 Maker only (Post only): The order will not be traded in the market immediately. It is guaranteed that the user is always a Maker. If the order will be traded with the existing order immediately, the order will be cancelled.
3.2 IOC (Immediately or Cancel): If the order cannot be filled immediately, the unfilled part will be cancelled immediately.
3.3 FOK (Fill or Kill): If the order cannot be fully executed, it will be cancelled immediately.
3.Fee rate
- Maker and Taker
Taker is an order that actively trades the opponent's market, and Maker is a queue to wait for passive transaction. In terms of time, generally the transaction time of taker is shorter than the transaction time of pending orders. At the same time, since taking an order reduces market depth and liquidity, and placing an order increases market depth and liquidity, the handling fee for taking an order is higher than the handling fee for placing an order.
- Rate Details
|
Maker |
0.04% |
|
Taker |
0.06% |
4.Margin and Profit and Loss Calculation
- Open Margin
In the U-standard perpetual contract market, the margin of the contract is a part of the funds temporarily frozen in the account to ensure that both parties to the transaction can normally conduct contract trading activities (position opening, closing, holding, profit and loss settlement, etc.). There are four types of margin involved in the contract transaction process, namely, pending order margin, position opening margin, maintenance margin, and used margin.
The margin for opening a position refers to the minimum amount of collateral required to initially open a position in leveraged trading. The leverage used by traders is inversely proportional to the initial margin required to open a position. The higher the leverage, the less margin is required to open a position.
Specifically, opening margin = number of open positions * contract multiplier * average opening price / leverage multiple
- Cross and isolated positions
U-standard perpetual contracts can only use USDT as margin in both the cross-margin mode and the isolated-margin mode. In the isolated-margin mode, a fixed margin is allocated to each underlying position, and the liquidation will only lose the margin used by the isolated position at most; In this mode, all positions share all assets in the contract account as margin, and during liquidation, it may lose all USDT in the contract account at most.
- Contract Multiplier
The contract multiplier is the actual amount of underlying assets represented by each contract. When users trade U-standard perpetual contracts, they will place orders based on one contract. For different trading targets, the face value corresponding to one contract is also different.
| target | BTC | ETH | LTC | DOT | SOL | ATOM | MATIC | FIL | DOGE |
| multiplier | 0.001 | 0.01 | 1 | 1 | 1 | 1 | 1 | 1 | 100 |
| target | TRX | XRP | BCH | AXS | ETC | EOS | UNI | SUSHI | LINK |
| multiplier | 10 | 100 | 0.1 | 1 | 1 | 1 | 1 | 1 | 1 |
| target | 1000PEPE | WAES | AAVE | COMP | APE | ARPA | SUI | ARB | ADA |
| multiplier | 1000 | 0.1 | 0.01 | 0.01 | 0.1 | 10 | 1 | 0.1 | 1 |
| target | TOMO | LDO | NEAR | CFX | DYDX | NEO | IOTA | ONT | WLD |
| multiplier | 0.1 | 0.1 | 0.1 | 1 | 0.1 | 0.1 | 1 | 1 | 1 |
| target | YGG | HBAR | OP | ALGO | SEI | CYBER | PERP | BNB | TRB |
| multiplier | 1 | 1 | 0.1 | 1 | 1 | 1 | 1 | 1 | 1 |
| target | GLMR | FRONT | BLZ | STMX | STORJ | MKR | LQTY | ARK | STRAX |
| multiplier | 1 | 1 | 1 | 100 | 1 | 0.01 | 1 | 1 | 1 |
| target | RUNE | OGN | ZRX | BNT | ORBS | COMBO | 1INCH | BIGTIME | BLUR |
| multiplier | 1 | 1 | 1 | 1 | 10 | 1 | 1 | 1 | 1 |
| target | EGLD | INJ | MANA | MASK | XEM | SAND | TIA | IMX | C98 |
| multiplier | 1 | 1 | 1 | 1 | 10 | 1 | 1 | 1 | 1 |
| target | GALA | LINA | SNX | MEME | XMR | BSV | XLM | XTZ | AVAX |
| multiplier | 10 | 100 | 1 | 10 | 0.001 | 1 | 10 | 1 | 0.1 |
| target | ORDI | POLYX | GAS | BAKE | AGIX | CRV | BAND | ||
| multiplier | 0.1 | 1 | 0.1 | 1 | 1 | 1 | 1 |
- Profit and loss calculation
Profit and loss are calculated in different ways according to the long and short nature of the order. At the same time, depending on the order status, the closed position will be calculated based on the average closing price, and the open position will be calculated based on the current marked index.
5.Funding rate
- Funding rate description
Since the perpetual contract has no expiration date or delivery date, it is necessary to use the "funding fee mechanism" to anchor the contract price to the spot price. Funding fees are settled entirely between users, and the platform does not charge any fees from them.
- Funding rate collection
The perpetual contract is a period of 8 hours, and the settlement is made at the end of each period. The settlement is made on the hour every day, and the settlement is made 3 times a day at 00:00, 08:00, and 16:00. The above times are all GMT+8 time. And only users who hold positions at the time of settlement need to charge or pay funding fees; if the positions have been closed before settlement, they do not need to charge or pay funding fees.
At the time of settlement, whether the user should charge or pay the funding fee is determined by the current funding rate and the user's position. When the funding rate is positive, longs will pay funding and shorts will receive funding; when the funding rate is negative, longs will receive funding and shorts will pay funding.
- How to calculate
Funding fee = number of positions * contract specification * mark price at settlement * funding rate at settlement
6.mark index
The marked index is used to calculate the user's unrealized profit and loss and trigger forced liquidation. Generally speaking, liquidation will only be triggered when the marked index reaches the liquidation price of the user's position.
The marked index takes into account both the spot index price and the moving average of the basis. Smoothly filter contract price fluctuations in a short period of time, reducing unnecessary forced liquidation caused by abnormal fluctuations such as "pins".
7.Maintenance Margin Rate
- Maintenance Margin Rate
The margin rate is an indicator to measure the risk of the assets secured by the position. The maintenance margin is the minimum margin rate of the position. When the position margin rate reaches the maintenance margin rate, your position will be forcibly taken over by the system, that is, the forced liquidation will be triggered.
- Position margin rate calculation
Margin rate = (position initial margin + unrealized profit and loss) / (position number * contract multiplier * marked index price)
8.Liquidation liquidation and risk protection fund
- forced liquidation
1.1 Liquidation in Isolated Margin Mode：Position Margin + Unrealized P&L ≤ Maintenance Margin，When the margin rate = 100%, liquidation will be triggered.
1.2 Liquidation in Cross Margin Mode：Equity in cross margin account (excluding margin and unrealized PNL in isolated margin mode, and all order margin) ≤ Maintenance Margin，When the margin rate = 100%, liquidation will be triggered.
- Risk Protection Fund
The protection fund is designed to compensate for the losses caused by the user's position crossing under extreme market conditions. It is hosted by the platform and the service is guaranteed to all contract trading users.
The forced liquidation liquidation fee charged for the forced liquidation of the position will be injected into the protection fund, and when the liquidation engine takes over the position and the processing balance is negative, it will be supplemented by the risk protection fund first, without the need for compensation from the user who crosses the position. When the risk protection fund is not enough to cover all the losses, ADL profits will be triggered to automatically reduce the positions. The platform does not need the profitable users to share the losses of the positions from beginning to end.
9.ADL Automatic Lighten Up
When a user is forced to close a position, the remaining position of the user will be taken over by the liquidation engine. If the forced liquidation position fails to close at the liquidation price in the market, and the insurance fund is insufficient to cover the loss, the system will trigger the automatic reduction mechanism.
The automatic lightening system will lighten the positions of users who hold positions in the opposite direction. The order of lightening will be determined according to leverage and profitability. Generally speaking, profitable users with higher leverage and profitability are more likely to lighten their positions.
10.Risk Limit
- Set open long/short risk limit
Risk limit is a risk management mechanism used to limit the risk of a trader's position. In a trading environment with large price fluctuations, a single trader who uses high leverage to hold a large position may bring huge losses through the position. This system uses the concept of dynamic leverage, and users can freely choose the maximum position size, but this will affect the maximum leverage, initial margin ratio, maintenance margin rate and liquidation fee accordingly.
- Maximum leverage and initial margin ratio
The maximum leverage that the user can use when trading will change according to the value of the position held by the trader: the greater the value of the position held, the lower the maximum leverage that can be used, and the larger the leverage selected, the larger the position that can be opened. smaller.
At the same time, the corresponding maximum leverage and position level will be different for different trading varieties.
- Ladder Maintenance Margin Rates
In order to better manage risks and optimize the freedom of user trading, U-standard perpetual contracts use a stepped maintenance margin rate, and different maintenance margin rates are used for positions with different holding values. Generally speaking, a position with a heavier position value requires a higher maintenance margin rate, and it is easier to liquidate the position at the same loss ratio.
- tiered liquidation liquidation fee
Corresponding to the tiered maintenance margin rate, the tiered liquidation liquidation rate adopts different liquidation rates for positions with different holding values. Generally speaking, the tiered liquidation liquidation rate will be equal to the tiered maintenance margin rate.
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