Currency Standard Perpetual Contract
Margin and Contract Specifications
1. Margin Currency
USDT-Margined Perpetual Contracts
Use USDT as the margin and settlement currency.
Users only need to hold USDT to open and maintain positions across all contract types (e.g., BTC/USDT, ETH/USDT).
Collateral value remains stable, as USDT is a stablecoin.
Coin-Margined Perpetual Contracts
Use the underlying asset (e.g., BTC) as the margin.
Users must hold and deposit the corresponding coin to trade (e.g., BTC for BTC/USD contracts).
Collateral value fluctuates in tandem with market prices, introducing an additional layer of risk.
2. Risk Exposure from Collateral Depreciation
Due to the differences in collateral currencies, the risk exposure during a market downturn differs:
In coin-margined contracts, if the price of the underlying asset drops (e.g., BTC), the required margin in BTC increases, and the value of the held collateral decreases, amplifying risk.
In USDT-margined contracts, the value of the collateral (USDT) remains constant in USD terms, providing greater stability in volatile markets.
3. Valuation Unit
USDT-margined contracts are denominated and settled in USDT.
Coin-margined contracts are denominated in USD but settled in the underlying asset.
Example:
BTC/USDT: Uses BTC/USDT spot price as its index, calculated from BTC-to-USDT trades across major exchanges.
BTC/USD: Uses BTC/USD spot price from exchanges quoting BTC in USD.
4. Contract Face Value
USDT-Margined Contract: Each contract represents a fixed quantity of the underlying asset. Example:
Coin-Margined Contract: Each contract is typically valued in USD terms. Example:
5. Profit and Loss Settlement Currency
USDT-Margined Contracts:
Profit and loss (PnL) are calculated and settled in USDT.
Coin-Margined Contracts:
PnL is calculated and settled in the underlying coin.
For example, profits from a BTC/USD contract are settled in BTC.
Summary Table
Collateral Currency
USDT
Underlying Coin (e.g., BTC)
Price Stability
Stable
Volatile (coin-dependent)
Settlement Currency
USDT
Underlying Coin
Valuation Unit
USDT
USD
PnL Settlement
USDT
Underlying Coin
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