Perpetual contract is a kind of innovative financial derivatives designed based on digital assets, between spot and futures, compared with traditional futures contracts, perpetual contract has no delivery date, investment flexibility and other features
USDT contract, i.e. positive contract, the denominated currency and the settlement currency are both USDT, investors can buy long contracts to get the benefit of the rising price of virtual digital currencies, or sell short to get the benefit of the fall of virtual digital currencies.
Product Features:
(1) U-denominated contracts, more intuitive gains
USDT localized contracts use USDT as the settlement currency. Typical user groups are fiat currency localization users, which meets the requirements of such users for low transaction costs and simple calculation.
(2) Expiry date
Perpetual contracts do not have an expiration date and never expire.
(3) Index Price System
USDT margin contract adopts the corresponding underlying USDT index, in order to ensure that the spot index price reasonably reflects the fair spot market price of each coin, Bitdu selects more than 3 mainstream exchanges' pairs of coins for each contracted coin as the index weighting components, and designs the abnormality processing logic to ensure that the index fluctuates within the normal range when there is a large deviation from the price of a single exchange.
(4) Price limit system
Bitdu flexibly adjusts the price range for placing orders according to the spot price and last-minute contract price, preventing unscrupulous investors from maliciously smashing orders and creating burst positions without affecting investors' normal orders.
(5) Marked price system
Bitdu adjusted on the basis of the contract market liquidation mechanism, in the event of extreme price fluctuations will refer to the marking price for liquidation judgment, to prevent investors from liquidation due to abnormal transaction price of a single transaction, and further reduce the possibility of unscrupulous investors malicious smashing to create a liquidation.
(6) Step maintenance margin rate system
Maintenance margin rate refers to the minimum margin rate required by the user to maintain the current position. When the margin rate is lower than the maintenance margin rate + closing fee rate, it will trigger the mandatory liquidation of the position or mandatory partial reduction of the position.Bitdu implements a step maintenance margin rate system, i.e., the larger the position held by the user, the higher the maintenance margin rate, and the lower the maximum leverage that the user can choose.
(7) Funding Fee Mechanism
As there is no due date for delivery, perpetual contracts require a funding fee mechanism to anchor the contract price to the spot price. Funding fees are charged every 8 hours at 08:00, 16:00 and 24:00 Hong Kong time daily, and users are only required to pay or receive funding fees if they hold a position at that time. If a position is closed before the fee is charged, no funding fee is payable.