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Support CenterContractsRules of U-Futures Trading
Rules of U-Futures Trading
2022/08/12 19:48:15

Solve your problems and learn more about related topics via our tutorial video: How to Start U-Futures Trading?


More details are available in the whole article below.


1. General Rules

In order to standardize the USDT-Futures contract trading, maintain market order, and protect the legitimate rights and interests of investors, these rules were formulated in accordance with the principles of fairness, openness, and impartiality. If there are no special provisions in these rules, the FAMEEX Terms of Use and other relevant regulations of FAMEEX shall apply.

 

2. Definition

USDT-Futures is a perpetual futures contract for digital assets denominated and settled in USDT. There is no need to hold other digital currency except USDT to trade. In your USDT-futures contract account, your only asset is USDT. There is no expiration date and the trading price is anchored to the reference index price by the funding mechanism.

 

3. Trading Time

The USDT-futures contracts trade transacts 24/7. It’s settled every 8 hours at 00:00 SGT; 08:00 SGT and 16:00 SGT for all USDT-futures perpetual contracts. At the settlement time, our system will postpone trading until our system goes through the settlement process.


4. Trade Types

The trade types of a USDT-Futures Contract can be separated into opening and closing positions. Each type can be further divided into two directions, long and short:

An open long position means that traders buy a certain number of contracts when the traders predict the market go upwards. When the orders are executed, their long positions will increase.

A close long position means that traders exit the market by offsetting owned buying contracts when the traders think the market tends to go downwards. When the orders are executed, their long positions will decrease.

An open short position means that traders sell a certain number of contracts when assuming the market is bearish. When the transaction is concluded, short positions will increase.

A close short position means that traders exit the market by offsetting the selling contract held currently when the index is not bearish. When the transaction is concluded, short positions will decrease.


5. Leverage

U-futures Trading supports 10x, 20x and higher leverage respectively. Before opening a position, you need to select the leverage. If the user is having any open positions and no pending orders, the user can switch the current leverage of the futures.


For example, the leverage of BTC U-futures contracts is 20 times. Users only need to have 10 USDT as a margin to open long/short positions with a maximum value of 200 USDT as BTC contract position, which will bring more profits.


6. Margin

U-Futures trading is a contract that guarantees a position. Traders need to keep a certain percentage of their funds as a maintenance margin, which applies to both cross margin and isolated margin.


6.1 Cross Position and Cross Margin

Under the cross margin, the assets in your account will be all considered as margin amounts, and the profit and loss by all contracts will be used as the contract's position margin.


Position margin = Position X Mark Price / Leverage 


For example, if trader A has 2 BTC positions and ETH position of U-Futures contracts in cross margin at the same time, all assets will be considered as margin for these 2 positions. The liquidation will happen only when the position loss triggers 100% risk rate of the overall margin balance for both BTC and ETH positions.


6.2 Isolated Position and Isolated Margin

Under the isolated margin, users can hold positions in both directions, and the margin of each position is calculated independently for the margin balance, and also for the risks of loss and profits.


Position margin = Position X Open Price / Leverage - Transaction Fee + Isolated Fund


For example, if trader B has 2 BTC positions and an ETH position of U-Futures contracts in an isolated margin at the same time. The liquidation of the BTC contract will happen only when the position loss triggers 100% risk rate and only loses the margin for the BTC position. It will not affect ETH position in the A-Futures contract.


6.3 Maintenance Margin

The maintenance margin is the minimum percentage of margin for traders to keep their current position. If your margin is lower than the current required maintenance margin, it will trigger the 100% risk rate and liquidation.


Maintenance Margin of Cross Margin Balance = Account Balance + Unrealized PNL of Cross Margin - Isolated Margin


Maintenance Margin of Isolated Margin Balance = Isolated Margin + Unrealized PNL of Isolated Margin


7. Liquidation and Liquidation Fee

After opening a position, liquidation and auto deleveraging positions occur when the maintenance margin is lower than the current required maintenance margin. After the liquidation process, the user's remaining balance of the corresponding position will be retrieved by our platform as a liquidation fee if there is no bankruptcy price. When the position cannot be liquidated at a price that is better than the bankruptcy price and our insurance fund will cover the contract loss.


8. Supplementary Provisions

8.1 Users need to sign the FAMEEX U-Futures Contract Trade Agreement ahead of time. Then users will be eligible to start trading.

8.2 The FAMEEX platform does not guarantee any revenue or profit on our U-Futures contract trading. U-futures contract is an extremely high-risk financial instrument. Please make your investments very cautiously. Users should self-assess any possible losses within an affordable range. FAMEEX will not be responsible for any investment losses.

8.3 These rules are formulated by the FAMEEX platform and are effective after the announcement to all platform investors, the same applies to modifications.

8.4 The FAMEEX platform has the sole discretion of interpreting these rules.

8.5. These rules are effective immediately.


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