I.Introduction to positive perpetual contracts

1. Introduction

A positive perpetual contract is a virtual contract product settled in USDT. Investors may obtain earnings from the rise in the prices of virtual digital currencies by buying long contracts, or from the decline of virtual digital currencies by selling short contracts. The contract leverage ratio ranges between 1 and 100.

It differs from a fixed-term contract in terms of:

- Due date: Each delivery contract features a fixed delivery due date and delivery price, while each positive perpetual contract features no delivery due date and will never expire;

- Funding rate: Without any delivery due date, the perpetual contract needs to anchor the contract price to the spot price through the "funding rate mechanism";

- Underlying index: The perpetual contract measures the user's unrealized profits and losses with index prices to effectively reduce the unnecessary frequent liquidations in case of market fluctuation (please refer to other documents for the selection of index prices);

- Elevated maintenance margin rate system: A maintenance margin rate refers to the minimum margin rate required by the user to maintain his or her current positions. The margin call or some position reduction will be triggered when the margin rate is lower than the maintenance margin rate. The elevated maintenance margin rate system applies to users holding different positions, namely, the larger the user’s positions are, the higher the maintenance margin rate will be required, and the lower the maximum leverage ratio will be available to the user.

2. Contract elements

3. Service charge rate

Maker: 0.02%

Taker: 0.06%

Doex  Team

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