Coinstore Perpetual Futures

What are Perpetual Futures?

Key Features

1. USDT-margined perpetual futures for more intuitive returns: Coinstore’s USDT-margined futures use USDT as the settlement currency. The typical user base consists of fiat-currency-based users who prefer low trading costs and simple calculations.
2. Perpetual futures have no expiration date and never expire.
3. Index price system: USDT-margined futures use the USDT index of the corresponding underlying asset. To ensure the spot index price reasonably reflects the fair spot market price of each token, Coinstore selects trading pairs from more than three major exchanges as index components for each future and designs an exception handling mechanism to ensure that if one exchange’s price deviates significantly, index fluctuations remain within a normal range.
4. Price limit system: Based on spot prices and the previous one-minute futures price, Coinstore flexibly adjusts the order price range. This prevents malicious actors from deliberately crashing the market to trigger forced liquidations, while ensuring normal order placement for investors is not affected.
5. Mark price system: Coinstore adjusts the liquidation mechanism in the futures market by using the mark price to determine liquidation during periods of extreme volatility. This prevents forced liquidations caused by a single abnormal trade and further reduces the risk of malicious actors manipulating prices to trigger liquidations.
6. Tiered maintenance margin ratio system: The maintenance margin ratio is the minimum margin rate required for users to maintain their current positions. If the margin ratio falls below the maintenance margin ratio plus the liquidation fee rate, forced liquidation or partial liquidation will be triggered. Coinstore implements a tiered maintenance margin ratio system: the larger the user’s position, the higher the maintenance margin ratio, and the lower the maximum leverage available.
7. Funding fee mechanism: Since perpetual futures have no settlement date, a funding fee mechanism is used to anchor the futures price to the spot price. Funding fees are charged every 8 hours, at 08:00, 16:00, and 24:00 (Hong Kong time) each day. Users only pay or receive funding fees if they hold a position at these times. If a position is closed before the fee collection time, no funding fee is charged.
8. One-way and two-way positions:
   • In one-way mode, each future under one margin mode can only have one position direction, either long or short. Example: If a user holds 10 BTCUSDT perpetual long futures and sells 5 contracts, their position becomes 5 long contracts.
   • In two-way mode, each future under one margin mode can simultaneously have both long and short positions. Example: If a user holds 10 BTCUSDT perpetual long futures and sells 5 contracts, they will then hold 10 long futures and 5 short futures at the same time.