BitWell Perpetual Futures Contract Rules

1. Contract Type

BitWell perpetual contract is USDT-based contract, i.e. it is denominated and margin collected in USDT.

2. Contract Specifications

SymbolContract MultiplierContract fave valuePrice Accuracy
BTC/USDT0.0010.001 BTC2
ETH/USDT0.010.01 ETH2
BCH / USDT0.010.01 BCH2
LTC / USDT0.10.1 LTC2
DOT / USDT11 DOT4
XRP / USDT11 XRP5
BNB / USDT0.10.1 BNB3
DOGE / USDT100100 DOGE6
UNI / USDT11 UNI4
LINK / USDT0.10.1 LINK4
ETC / USDT11 ETC4
TRX / USDT100100 TRX6
EOS / USDT11 EOS4
MATIC / USDT100100 MATIC5
KSM / USDT0.10.1 KSM3
AAVE / USDT0.10.1 AAVE3
ADA / USDT1010 ADA6
SUSHI / USDT11 SUSHI4

3. Position Mode

The system supports two-way positions, and positions of the same species, direction and leverage multiplier will be combined into one position.

4. Index and Mark Price

The contract tracks the corresponding currency index. To ensure the fairness of the trade, the system will calculate the basic calculation index mark price based on the BTC index price, as a ‘fair price’ for all kinds of calculations on the contract, such as: settlement of funding fee, profit and loss , liquidation, etc.

5.Leverage Mechanism

The system uses a stepped leverage mechanism, with a minimum leverage of 1x and a maximum of 150x. The higher the leverage, the less positions can be opened to ensure that users effectively control their position risk and avoid excessive losses. The default leverage is 20x.

At the same time, the system supports dynamic adjustment mechanism of position leverage. In other words, when the user adjusts the opening leverage, the system will simultaneously adjust the opening leverage of the existing positions of the same species and update the opening margin, maintenance margin, liquidation price and other related data at the same time. When the user adjusts from high leverage to low leverage, the system will judge whether the margin of the user’s position is sufficient (the available funds in the perpetual account will be used as the margin in the full position mode), and will not allow the adjustment if the margin is insufficient.

Note: The leverage multiplier cannot be adjusted when there are open orders.

The system imposes a step leverage multiplier limit, as follows:

Leverage(include upper limit)Maximum position (include order volume)
Unit: Cont
110,000,000
1 ~ 25,000,000
2 ~ 53,000,000
5 ~ 102,000,000
10 ~ 201,000,000
20 ~ 30800,000
30 ~ 50400,000
50 ~ 80200,000
80 ~ 100100,000
100 ~ 15010,000

6.Margin and Liquidation

6.1. Margin

The system supports two margin modes: Cross Margin and Isolated Margin. Users can only switch margin mode when there is no position or order.

  1. Cross Margin mode: All the equity in the perpetual account is used as the margin for all positions (user equity = available assets + open order frozen assets + realized PNL + unrealized PNL + position margin). When the position margin is insufficient, it will be automatically deducted from the available funds in the perpetual account to the open position margin.
  2. Isolated Margin mode: positions of the same species, the same direction and the same leverage multiple are calculated as independent positions for margin, and the maximum loss of each position is limited to the position margin. When the margin balance is less than the maintenance margin, it triggers liquidation of the position without a margin deduction from the available assets in the perpetual account.
  • Opening Margin (Initial Margin) = Price * Filled Conts * Contract Multiplier / Opening Leverage
  • Maintenance Margin = 50% of the Opening Margin
  • Reclaim margin = 25% of the Opening margin
  • Excess Margin = Max(0, Margin Balance – Initial Margin – Abs(Realized Loss) – Abs(Floating Loss))

When a new open position is added to an existing position, the average opening price, opening margin, maintenance margin, and reclaim margin of the position will change. When there is excess margin in a user’s position, the available funds can be withdrawn to the perpetual account.

6.2. Liquidation

When the user’s position margin balance is less than the maintenance margin, it will trigger the system liquidation. This may cause unnecessary loss to the user. Please control the risk and add the margin or close the position in time when the margin balance is less than the opening margin.

The system will automatically calculate the liquidation price according to the margin level, please pay attention to this data and adjust the margin before liquidation or stop loss in time.

After triggering the system liquidation, if the user’s remaining margin is less than the reclain margin, reclaim will be triggered (closing position manually will not trigger the reclaim), and the remaining margin of the position will be recovered by the system and transferred to the Investor Protection Fund.

Judgment of the system on the liquidation: the system will keep an eye on the market in real time and take the latest filled price EMA20 of the platform contract and the mark price EMA20 at the same time to compare the liquidation price of the position, which will be triggered only when the liquidation price is inferior to both. The purpose of doing so is to reduce the occurrence of liquidation and protect investors from unnecessary losses.

7.Trading Fee

Trading Fee = Filled Price * Filled Conts * Contract Multiplier * Trading Rate

Among them, Maker fee rate is 0.02%, Taker fee rate is 0.07% (tentative, according to the actual market situation will be adjusted, please pay attention to the official announcement); For contract multipliers, please refer to the contract specification description above.

8.Funding Fee

The funding rate is used to balance the long and short positions, which is an important means for perpetual futures contracts to ensure that their prices keep pace with the index and avoid significant price deviations. The funding fee is charged only to users with net positions at the time of regular settlement. When the funding rate is positive, the net long side pays the net short side, otherwise the reverse is true.

Funding Fee = Funding Fee Rate * Mark Price * Net Position * Contract Multiplier

The cost of funding fee is calculated as follows.

9.Real-time Settlement

When a user closes a position, its profit and loss will be settled in real time. The settled funds will first make up the margin of the open position. If the margin of the open position is below the opening margin, the profit and loss of the closed position will first make up the margin of the position to the opening margin, and the remaining part will be refunded to the available funds in the user’s futures account in real time, which can be used for opening the position.

10.Timed Settlement

The system will settle the funding rate every 8 hours; when the funding fee payer’s position margin is lower than the maintenance margin, no further payment will be made.

11.Take Profit and Stop Loss

Take profit and stop loss refers to the closing position order with pre-set trigger conditions (take profit price or stop loss price) and limit price. When the latest trading price reaches the pre-set trigger price, the system will place a closing position order to the market according to the limit price and quantity set in advance, so as to achieve the purpose of take profit or stop loss.

Users can set a take profit order or a stop loss order for a specified position when holding a position. After the setting is completed, the corresponding position will be frozen and when the latest trading price in the market reaches the trigger condition, the system will place a close position limit order to the market according to the limit price and quantity set in advance.

12.Investor Protection Fund

Investor Protection Fund, which is intended to cope with unexpected situations and protect investors from unforeseen events. Its sources are profits generated by the exchange’s perpetual contract products, forfeiture of remaining margin of insolvent users, additional accruals from time to time by the exchange, etc.

13.Order Limit Mechanism

To avoid excessive price fluctuations, the system imposes a limit on the order price, i.e., the limit order price fluctuates 50% up or down based on the latest trade price.

14.Basic Terms and Conditions Form

Take the BTC perpetual contract as an example.

Contract TypeUSDT-M perpetual futures contracts
Tracking IndexBTCUSDT Index
Contract Multiplier0.001
Margin ModeCross, Isolated
Leverage multiplier1 ~ 150 Leverage
Fee RateMaker 0.02%, Taker 0.07%; Please check the announcement for VIP fee rates
Minimum price fluctuation gear0.01 USDT
Minimum trade size0.001 BTC
Maintain margin rates50%
Settlement Period8 hours, i.e. 0:00, 8:00, 16:00 UTC time
Order Limits50% of the latest price

Note: All parameters and rules in this article are tentative values during the public test period, and may be adjusted when officially launched. The final interpretation is owned by BitWell.

Risk Warning:

Cryptocurrency investment is innovative blockchain products, and subject to price fluctuation. Please judge your risk-taking ability rationally and make your investments with caution.

BitWell is not responsible for any direct, indirect or consequential losses as a result of the cryptocurrency trading and holding.

BitWell Team
2021/01/19


BitWell is committed to building a fair and transparent global digital asset trading platform, providing investors with secure, convenient and intelligent blockchain derivatives trading services.

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