Perpetual Contract Introduction

1. Contract Introduction

USDT perpetual contract is a digital asset derivative product. Users can judge the rise and fall and choose to buy long or sell short contracts to obtain the benefits of the rise/fall of digital asset prices. Compared with European options, perpetual contracts have more advantages and flexibility. USDT-based perpetual contracts have no delivery date. Users can hold them continuously and close their positions at any time.

2. Position holding mode

STORM perpetual contract supports two holding modes: full position and position by position. Users can hold positions in both directions (can hold short positions and long positions at the same time), and the risks of short positions and long positions are calculated independently. The two-way positions of each contract will calculate their margin and income independently.

In the full position mode, the USDT assets of the contract account will provide guarantees for each position, that is, all positions under the full position share one account equity, and the profit and loss, occupied margin, margin rate and other data in the account are calculated together;

In the position by position mode, the margin and profit and loss between positions do not affect each other. If a user's position is liquidated, he will only lose the position margin, that is, the amount of the position margin is the user's maximum loss.

3. Contract trading time and transaction fee

1. Trading time: 7*24 hours

2. Transaction fee: The transaction fee of STORM perpetual contract is uniformly charged at 0.05% per side. The transaction fees generated by the user's opening and closing transactions are deducted from the opening margin, and will not be deducted from the user's account available balance.

4. Funding rate

STORM perpetual contract currently has no funding rate item.

5. Forced liquidation and maintenance margin rate

1. The maintenance margin rate reflects the ratio of the current position equity to the position value. The higher the maintenance margin rate, the lower the risk of forced liquidation of the position, and the lower the maintenance margin rate, the greater the risk of forced liquidation.

2. When the user's maintenance margin rate is equal to or less than the minimum maintenance margin rate set by the platform, the position triggers forced liquidation. In full position mode, when the net asset value of the account is less than the total minimum maintenance margin of multiple positions held at the same time, multiple positions will be forced to close at the same time. Compared with other platforms, STORM sets different minimum maintenance margin rates for different positions and is lower than other platforms, which means that users can maximize the use of funds.

3. Maintenance margin rate = position equity ÷ position value, position value equals position multiplied by the current market fair price of the contract, position equity equals margin plus floating profit and loss, long position floating profit and loss = (current contract market price - average position price) * position, short position floating profit and loss = (average position price - current contract market price) * position.

4. Contract types and minimum maintenance margin rates are as follows

5. When forced liquidation is triggered, the system will first cancel the user's liquidation order and automatically close all user positions in the form of market price entrustment. When closing a position, if a loss occurs due to a position being liquidated, the loss will be paid by the platform risk fund. If the position can be liquidated at a better price, the remaining small amount of margin will be included in the platform risk fund for the user to pay when the position is liquidated.

Six. Risk Control

In order to control the overall risk, the platform will set and adjust the position limit of a single user, a single currency or all currencies in a timely manner. When the limit is exceeded, the position may be restricted.

When a large order is forced to close a position in the market, the system will give priority to matching the position order with the user with the highest profit on the platform. If the position of the user with the highest profit is not enough to complete the matching of the position order, the position of the current highest profit user will be matched with the position user, and so on.

When the market fluctuates greatly, the system may gradually close the user's position according to the user's risk situation, so as to protect the interests of the user as much as possible while controlling the risk.

[The contract rules may be adjusted in real time according to the market, and the adjustment will not be notified separately] Please pay attention to the platform contract rules in time, thank you for your reading!

The final right of interpretation of STORM perpetual contract belongs to STORM platform.