BitWell perpetual contract is USDT-based contract, i.e. it is denominated and margin collected in USDT.
|Symbol||Contract Multiplier||Contract fave value||Price Accuracy|
|BCH / USDT||0.01||0.01 BCH||2|
|LTC / USDT||0.1||0.1 LTC||2|
|DOT / USDT||1||1 DOT||4|
|XRP / USDT||1||1 XRP||5|
|BNB / USDT||0.1||0.1 BNB||3|
|DOGE / USDT||100||100 DOGE||6|
|UNI / USDT||1||1 UNI||4|
|LINK / USDT||0.1||0.1 LINK||4|
|ETC / USDT||1||1 ETC||4|
|TRX / USDT||100||100 TRX||6|
|EOS / USDT||1||1 EOS||4|
|MATIC / USDT||100||100 MATIC||5|
|KSM / USDT||0.1||0.1 KSM||3|
|AAVE / USDT||0.1||0.1 AAVE||3|
|ADA / USDT||10||10 ADA||6|
|SUSHI / USDT||1||1 SUSHI||4|
The system supports two-way positions, and positions of the same species, direction and leverage multiplier will be combined into one position.
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.
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)|
|1 ~ 2||5,000,000|
|2 ~ 5||3,000,000|
|5 ~ 10||2,000,000|
|10 ~ 20||1,000,000|
|20 ~ 30||800,000|
|30 ~ 50||400,000|
|50 ~ 80||200,000|
|80 ~ 100||100,000|
|100 ~ 150||10,000|
6.Margin and Liquidation
The system supports two margin modes: Cross Margin and Isolated Margin. Users can only switch margin mode when there is no position or order.
- 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.
- 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.
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.
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.
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.
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.
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.
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.
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.
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.
Take the BTC perpetual contract as an example.
|Contract Type||USDT-M perpetual futures contracts|
|Tracking Index||BTCUSDT Index|
|Margin Mode||Cross, Isolated|
|Leverage multiplier||1 ～ 150 Leverage|
|Fee Rate||Maker 0.02%, Taker 0.07%; Please check the announcement for VIP fee rates|
|Minimum price fluctuation gear||0.01 USDT|
|Minimum trade size||0.001 BTC|
|Maintain margin rates||50％|
|Settlement Period||8 hours, i.e. 0:00, 8:00, 16:00 UTC time|
|Order Limits||50% 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.
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 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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