Perpetual MAX Contract Introduction

1. What is cryptocurrency contract trading?

Cryptocurrency contracts are contracts that represent the value of a specific cryptocurrency. When you buy a futures contract, you do not own the underlying cryptocurrency. What you own is a contract that means you agree to buy or sell a specific cryptocurrency at some point in the future.

2. Advantages of Perpetual MAX Contracts

Based on the functions of perpetual contracts, Perpetual MAX Contracts provide ultra-high leverage such as 500X and 1000X, allowing users to obtain higher investment returns with less principal;

Users can voluntarily decide to buy or sell contracts based on market conditions and personal wishes. Realized profit and loss is the profit and loss incurred by users when they actually close their positions.

3. Profit and loss calculation

Buy long: (closing price/opening price - 1) x leverage x margin
Buy short: (1 - closing price/opening price) x leverage x margin
Quantity = margin * leverage / opening price

4. Account structure

Perpetual MAX Contracts only support full position mode. Users can hold positions in both directions (can hold short positions and long positions at the same time), the risks of short positions and long positions are calculated independently, and the margin and income of each contract's two-way position will be calculated independently.

In the full-position mode, the USDT assets of the contract account will provide collateral 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;

V. Parameter details and rate description

1. Trading time: 7*24 hours

2. Trading fee:

The handling fee of the perpetual MAX contract is uniformly charged at 0.03% per side. The fees incurred by users for opening and closing positions are deducted from the opening margin, and will not be deducted from the user's account available balance.

3. Contract multiple:

300X 500X 700X 1000X

For example, if the multiple of BTC/USDT 1000x contract is 1000x, users only need to have 10 USDT as margin to open long/short BTC contract positions with a maximum value of 10,000 USDT to obtain more benefits.

4. Position limit/order limit:

The platform will limit the number of positions held by a single user for a certain contract and the number of orders for opening/closing a single position to prevent users from manipulating the market.

5. Funding rate:

There is currently no funding rate item for perpetual MAX contracts.

6. Forced liquidation and maintenance margin rate:

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. 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 account's net asset value is less than the total minimum maintenance margin of multiple positions held at the same time, multiple positions trigger forced liquidation at the same time. Compared with other platforms, the perpetual MAX contract 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.

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.

Contract varieties and minimum maintenance margin rates are as follows:

VI. Market price calculation instructions

Perpetual MAX contracts use the USDT index of the corresponding target. To ensure that the spot index price reasonably reflects the fair spot market price of each currency, we will select currency pairs from more than 3 mainstream exchanges for each contract currency as index weight components, and design exception handling logic to ensure that when the price of a single exchange deviates significantly, the index fluctuation is within the normal range. Compared with the perpetual contract price with large short-term price fluctuations, the perpetual MAX contract market price can better estimate and reflect the intrinsic value of the contract. We use this price to avoid unnecessary forced liquidation of customers and prevent any market manipulation.

VII. Trading Risk Disclaimer

Digital currency assets are volatile products with a high risk of loss. Prices may fluctuate significantly at any time. Due to these price fluctuations, the value of the assets you hold may increase or decrease significantly at any given moment, which may cause you to lose all the funds invested in the transaction.
Therefore, you should not trade or invest if you cannot afford the loss. Before deciding to trade with us based on your financial situation, past experience and risk appetite, you must fully understand the risks involved. If necessary, you should seek advice from an independent financial advisor. Your actual returns and losses will depend on many factors, including but not limited to market behavior, market movements and the size of your trades. Past performance is not a guide to future performance. Your investment returns may be positive or negative.

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

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