Futures Terminology
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USDⓈ-M futures and COIN-M futures
Price unit: USDⓈ-M futures in USDD and COIN-M futures in USD.
Earnings Calculation Currency: All types of USDⓈ-M futures use USDT to calculate gains and losses, while COIN-M futures use underlying assets.
Margin Currency: USDⓈ-M All Pairs of Futures Use USDT as Margin. Users can trade various USDⓈ-M futures with USDT. All COIN-M futures use the underlying assets of each futures as a margin, so users must hold those tokens for the transaction. For example, a user must transfer BTC to a margin before trading BTC/USD swaps.
Because the margin currencies are different, the risk of margin depreciation for USDⓈ-M futures is distinguished from the risk of COIN-M futures when token prices fall. Specifically, the margin of COIN-M Futures is affected by underlying assets. However, the rise or fall in token prices does not affect the value of USDT, so the margin of USDⓈ-M futures is also unaffected.
Crossing and Isolation
Cross Margin Mode: All cross positions under the same margin asset share the same asset cross margin balance. Upon liquidation, the entire margin balance of the asset and all outstanding positions remaining on the asset may be forfeited.
Isolated margin mode: manages risk for individual positions by limiting the amount of margins allocated to each. When the margin ratio of the position reaches 100%, the position is liquidated. You can use this mode to add or remove margins from a location.
One Way and Hedge
unidirectional mode
In one-way mode, one contract can hold only one position in one direction.
Hedge mode
Hedge mode allows you to maintain positions simultaneously in short and long term directions under the same contract.
Funding fee
BitMart's indefinite swap uses a funding rate mechanism to pin market prices to spot prices. Funding costs are a key operating mechanism for indefinite swaps.
FUNDING FEE CALCULATION SCHEDULE: 0:00, 8:00, 16:00, FUNDING FEE CALCULATION EVERY 8 HOURS.
If the funding fee ratio is positive, the long position pays for the short position.
If the funding fee rate is negative, Short Position will pay the funding fee to Long Position.
Forward transaction fee
Futures Trading Fees = Average Price * Transaction Size * Futures Commission Fate
Example: 1 You must complete a BTC Maker futures transaction and pay a futures fee when the average price is 10,000 USDT: 1*10000*0.02%=2 USDT
If you trade COIN-M futures, you will pay a transaction fee based on the coins you trade.
Reasonable price display
BitMart adopts a uniquely designed reasonable pricing system to prevent unnecessary forced liquidation of high-borrowing products. Without this system, a manipulated market or lack of liquidity could lead to unnecessary deviations from the price index, leading to unnecessary forced liquidation. To avoid unnecessary forced liquidation, we set the displayed price at a reasonable price, not the recent transaction price.
For indefinite swaps, reasonable indicative prices are index-based prices referenced to global spot market prices plus a funding cost basis that decreases over time.
Price index
The price index is the weighting of the prices on major spot market exchanges with relative trading volume. USDⓈ-M Futures Contract's price index is derived from Huobi, Okex, Bitrex, HitBTC, Gate.io , Bitmax, Poloniex and MXC.
Margin ratio
Margin Ratio = Margin / Margin Balance. When the margin ratio reaches 100%, the position is liquidated.
Compulsory liquidation
Currently, persistent swaps support up to 100x leverage. To ensure the continuity of the position, traders must hold a certain percentage of the position's value, also known as the retention margin. If the trader's position margin is lower than the retention margin, the trader's position is liquidated and at the same time the retention margin is lost. This process is also known as forced liquidation or liquidation.
Your position will be liquidated when the indicated price of the futures reaches below the liquidation price (if long) or high (if short).
Unrealized gains and losses
Unrealized gains and losses are basically calculated at a reasonable price. Estimated profit and loss based on the market price at the time of position liquidation. It does not represent the actual gain or loss when the position is closed.
Realized gains and losses
Realization gains and losses mainly include prepaid expenses and closing gains and losses. Fees are deducted from the closed margin.
Realization gains and losses are gains and losses since the position was opened. For example, when you open a position, you pay a transaction fee and open the position, there is a realization gain or loss.
In addition, the user's gain or loss is TP/SL, and the cost of capital is included in the realized gain or loss.
Profit calculation
USDⓈ-M futures sell-off profit: (Closing price - market price) * Contract size
USDⓈ-M futures selling profit: (market price - closing price) * Contract size
COIN-M Futures Buying Earnings: Contract Size / Closing Price – Contract Size / Market Price
COIN-M Futures Selling Profit: Contract Size / Closing Price – Contract Size / Market Price
