Perpetual Contracts

What is a perpetual contract?

A perpetual contract is a futures contract that can be held forever without delivery. Users can choose to go long or go short contracts by judging the ups and downs to obtain income from the rise/fall of digital asset prices.

Differences between perpetual contracts and delivery contracts

	Perpetual Contracts	Delivery Contracts
Date of Expiry	✗	✓
Funding	✓	✗

Types of perpetual contracts

Types	Explanation
USDⓈ-Margined Futures Contracts	Use USDT as margin (settlement currency) to trade other currencies
Coin-Margined Futures Contracts	Use cryptocurrency as margin (settlement currency) to trade other currencies
Hybrid Contracts	Use any currency held by investors as margin (settlement currency) to trade other currencies
Mock Contracts	Simulate the transaction process with mock cryptocurrency

Comparison table between USDⓈ-margined and coin-margined futures contracts: USDⓈ-M and Coin-M Futures Contract

The core module of perpetual contract

Module	Effect
Underlying Currency Pair｜Margin Currency	Decide which pair and currency to trade with
Size	Determine the minimum trading unit of the contract
Index Price	The market fair price of the transaction currency
Mark Price	Used for liquidation and calculation of unrealized profit and loss
Funding Rate	Used to anchor the exchange contract price to the index price
Tiered Liquidation	Avoid positions being liquidated at one time
Insurance Fund	Used to protect bankrupt traders from adverse losses and ensure that the profits of winning traders are paid out in full
Socialized Loss System	Used to deal with loss after liquidation
Regular Settlement	Used to realize unrealized profit and loss
Margin Protocol	Used to store and distribute margin
Leverage - Limit	Used to control leverage and limit opening limit
Order Risk Control	To control the risk of placing an order
Fees	To charge fees