Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Open Trading
Dear user, to make sure you understand the risks involved with your assets, you need to learn the rules and pass the quiz to open contract trading.
Perpetual contract is a nanial derivative that resembles leveraged spot trading. It is settled in digital assets such as Bitcoin (BTC). Each contract has a Face
Value of 1 USD-worth of BTC, etc. Traders can long or short a position to pro t from the increase or decline of a digital asset's price or manage their
investment risks by hedging.
In perpetual contract trading, traders only need to pay a small amount of margin according to trade higher-value contracts. Traders can therefore make use of
different tools to increase their pro t, which involves greater risks.
Minimum margin A tiered maintenance margin ratio system is implemented according to the number of contracts held.
Expiry date There is no delivery date and expiry date in perpetual contract trading.
Settlement time Every 8 hours (04:00 ,12:00 and 20:00 SGP Time, UTC+8)
1. Expiry date: There is no delivery date and expiry date in perpetual contract trading.
2. Funding: As there is no expiry date, a "funding" mechanism is used to anchor the perpetual contract price to spot market price.
3. Settlement every 8 hours: Through the settlement every 8 hours at 04:00 ,12:00 and 20:00 every day (SGP Time, UTC+8), users’ UPL will be transferred to
realized pro t and loss (RPL), which allows better exibility in fund usage.
https://www.beex.one/contract/guest 1/2
12/3/2019 BEEX.one-The First Fully Transparent Integrated Crypto Exchange
All UPL will be settled and credited to user balance at the settlement time. The UPL will then be reset.
1. Margin ratio
Maintenance Margin Ratio (MMR) is the lowest required margin ratio for a user to maintain the current open position(s). It is used to prevent large position
from being liquidated, causing big impact on market liquidity. Basically, the larger the positions held, the higher MMR will be required, and the lower the
leverage will be available.
An ADL system is introduced to avoid market impacts caused by liquidation of large positions and margin call losses. If the system has incurred a
catastrophic liquidation, which the insurance fund cannot cover, the system will close out positions of clients who has higher effective leverages. The clients
will be given full notice if such event happens.
When a user's maintenance margin ratio falls below the tier's required level, the contract position will be closed at its liquidation price and taken over by the
forced liquidation engine. This is to avoid market impacts caused by cascade liquidation and margin call losses (losses caused by unful lled liquidated
positions) under volatile market conditions.
What is funding?
The "funding" mechanism is used to anchor the perpetual contract price to spot market price.
Funding occurs every 8 hours, after the daily settlement at 04:00 ,12:00 and 20:00 (SGP Time). If you close your position prior to the funding time, then you
will not pay or receive funding fee.
Funding = position value * funding rate (The funding rate is determined by the difference between contract price and spot index price between last and
current settlement time)
When the funding rate is positive, longs pay shorts. When it is negative shorts pay longs. (The platform does not charge any fees in the funding process.
Funding fees are exchanged directly between traders.)
Perpetual contract will be using underlying asset price for liquidation reference. This will reduce the frequency of liquidation as perpetual contract is a very
risky and high-leverage product. By setting the underlying price as reference instead of the last trade price, this will serve users to their best interest.
BEGIN QUIZ
©2019 BEEX.one All Rights Reserved Help Center About Us User Agreement
https://www.beex.one/contract/guest 2/2