To help users better understand perpetual contract products and their associated risks, we have compiled the following FAQ. Please read carefully and fully assess your risk tolerance before trading.
1. What is a perpetual contract?
A perpetual contract is a type of derivative based on the price of digital assets. Unlike traditional futures, it has no expiry date or settlement time.
Users can open leveraged long (bullish) or short (bearish) positions to potentially profit from price increases or declines.
2. How are trading fees calculated?
The platform charges a fee for each executed order as follows:
Fee = Trade Value × Fee Rate
Current fee rates:
Taker: 0.03%
Maker: 0.03%
Notes:
Fees are only charged when the order is executed; No fees are charged for unfilled or canceled orders; Partial position closing will incur fees according to the executed volume.
3. What is the difference between Maker and Taker?
Maker (limit order that adds liquidity)
Order enters the order book but does not execute immediately; Provides liquidity to the market.
Taker (order that executes immediately)
Order executes instantly against existing orders in the order book; Takes liquidity from the market.
Whether an order is Maker or Taker depends on the order price and market depth. The system determines this automatically.
4. What are Cross Margin and Isolated Margin modes?
Cross Margin
All available funds in the contract account can be used as margin; More flexible and less prone to liquidation, but risk is shared across the whole account; If liquidation occurs, the entire contract account balance may be lost.
Isolated Margin
Each position has its own allocated margin, limiting risk to that specific position; If the margin is insufficient, only that position may be liquidated; Suitable for controlling maximum losses and managing risk independently.
5. What is the difference between merged and separate positions?
Separate positions: Multiple independent positions for the same trading pair and direction; each can set its own take-profit/stop-loss.
Merged positions: Positions in the same trading pair and direction are automatically combined into one aggregated position for simpler management.
These modes only affect how positions are displayed and managed, not the underlying trading logic or PnL calculation.
6. What is the transfer function?
The transfer feature allows you to move funds between different accounts (e.g., spot account and contract account).
Notes:
The transfer amount depends on what is shown in the transfer interface; No fee is charged for transfers; Transfers do not affect existing open positions.
7. What is margin?
Margin is the collateral required to open a leveraged position. It serves to:
Ensure sufficient collateral for trading; Limit the maximum possible loss; Help calculate the liquidation price.
8. How is margin calculated?
Unified formula:
Opening Margin = Position Size × Entry Price ÷ Leverage
The position margin remains unchanged during the trade and is not affected by price fluctuations.
Price movements affect unrealized PnL and liquidation risk, not the locked margin amount.
9. What is forced liquidation?
Forced liquidation occurs when losses reduce your margin below the required maintenance threshold, causing the system to automatically close your position to prevent further loss.
Cross Margin:
The entire contract account balance may be used to cover losses; Liquidation may result in a total loss of all funds in the contract account.
Isolated Margin:
Only the allocated margin for that specific position is lost; Other positions and balances remain unaffected.
The liquidation price adjusts dynamically according to market conditions.
10. Why does slippage occur?
Slippage usually happens due to:
High market volatility; Insufficient market depth preventing full execution at expected price; Large orders pushing the price.
Slippage may cause the actual execution price to differ from the intended price.
11. How to reduce contract trading risks?
To improve trading stability:
Use leverage responsibly and avoid excessively high leverage; Set take-profit and stop-loss to control floating risk; Avoid heavy positions during extreme market volatility; Regularly evaluate margin levels and position safety; Avoid chasing the market or trading emotionally.
Friendly Reminder
Perpetual contracts are high-risk trading instruments and may result in partial or total capital loss.
Please ensure you fully understand the product rules, plan your positions responsibly, and take full responsibility for your own trading decisions.
If you have any questions, please contact our customer support for assistance.
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