Perpetual contract is a derivative product that is settled in USDT token. Traders enter either into a long (profit from upward trend) or short (profit from downward trend) position. Available leverage ranges from 1-100x (see contract specifications for more information).
Differences between futures and perpetual contracts:
- Settlement Date： Perpetual Contracts have no delivery date and never expires, whereas futures have a settlement date.
- Funding Rate：Since there is no delivery date, a funding mechanism is used to ensure that the Perpetual Contract prices is anchored to the spot market price;
- Daily Settlement：A daily settlement process (at SGP Time 04:00, 12:00 and 20:00) moves Unrealized PnL into Realized PnL.
- Risk Limits: Minimum maintenance margin (MM) is the minimum amount a user needed to maintain the current position. When this requirement is violated (due to market movement), auto-deleveraging or liquidation process will commence. Users with different position size require different MM. The bigger the position size, the higher MM needed, and the lower you can set your leverage at.