FAQ

Only by understanding the contract can we play the contract better!

Perpetual contracts

• What is a perpetual contract?

• What is the mark price?

• How to calculate the index price?

• What is the funding rate？

• Funding rate for the current period and estimated funding rate for the next period

• What is the insurance fund for?

• What is a socialized loss system?

• Socialized loss system vs automatic deleveraging (ADL)

• Difference between USDⓈ-Margined and Coin-Margined Futures Contracts

• What is the size * Cont., and how to convert it between the quantity?

Liquidation | Socialized loss system

• Why am I forced to close my position?

• What price does the exchange use for liquidation?

• How to calculate the liquidation price?

• What is the takeover price?

• What is the liquidation process?

• What is tiered liquidation?

• What is a maintenance margin? Why do we need it?

• Difference between the takeover price and the liquidation price

• Why is the takeover price not displayed on the K-line?

• Am I going bankrupt and in debt?

• What is the socialized loss system? Why do I participate in it?

• How to calculate socialized loss?

Open a position | Leverage

• Why is there a limit? Why should high leverage not open large positions?
• What is the price deviation? Why can't I place an order beyond the maximum deviation?
• How to calculate the initial margin?
• Why can’t I enter the opening value for a market order instead of the quantity?
• What is the difference between the cross margin and the isolated margin?
• One-way mode and hedge mode
• Will isolated long and short positions be liquidated?
• How large is the market order can be?
• How large is the limit order can be?

Account | Equity

• Is there a transfer fee?
• How to calculate equity?
• How to reconcile?
• What types of equity are there?
• How to calculate availability?
• Why sometimes does the transfer fail?
• How to calculate the maximum withdrawable amount?

Stop-limit order | Trigger order

• Why did the stop-limit order fail?
• How is the stop-limit order triggered?
• How to use the stop-limit order?
• Difference between the trigger and stop-limit orders
• Preset stop-limit order
• Will the trigger order freeze the margin?

Commission fees

• Which scene will collect the commission fees?
• How to calculate commission fees?
• Can the commission fee be negative?

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