Academy Beginners Tutorial Article

I. OKEx USDT Margined Perpetual Swap Introduction

2020.02.25

1. Overview

OKEx perpetual swap contract is a virtual derivative product that is settled in digital tokens USDT. Each contract has a face value of fixed amount of digital token(e.g BTCUSDT contract has a face value of 0.0001 BTC). Traders can long a position to profit from the increase of a digital asset’s price, or short a position to profit from the decline of a digital asset’s price. The available range of the leverage is 0.01-100x.

Sharing a lot of similarities with OKEx Futures Contract, OKEx Perpetual Swap has the following differences:

Delivery – Perpetual Swap has no delivery date and never expires;

Funding – as there is no delivery date, a funding mechanism is used to ensure that the Perpetual Swap price is anchored to the spot market;

Mark Price – Mark price is used to calculate users’ unrealized profits and losses (UPL) in order to reduce unnecessary liquidation in volatile market conditions.

Daily Settlement – a daily settlement process (at UTC 08:00) moves Unrealized PnL into Realized PnL, increasing flexibility of capital utilization.

Tiered Maintenance Margin Ratio System – Maintenance margin ratio (MMR) is the lowest margin ratio required for holding a user’s current positions. When the Margin Ratio drops below the MMR plus the liquidation fee rate, liquidation (of full or partial position) occurs. The larger the position a user holds, the higher the MMR, and the maximal leverage available will be lowered effectively.

Partial Liquidation – for users with larger positions and tiered as level 3 or above, when the margin ratio is lower than the MMR of the tier plus the liquidation fee rate, but higher than the MMR of the first tier plus the liquidation fee rate, our system will attempt to bring the user down to a lower tier by partially liquidating the user’s positions, until the MMR requirement of the tier is satisfied. Under Fixed Margin Mode, during partial liquidation, the position will be frozen and no related operations can be executed; under Cross Margin Mode, during partial liquidation, the whole perpetual swap account will be frozen and no related operations can be executed.

2. Specifications

BTC:

TermDescription
UnderlyingBTC/USDT index
Settlement coinUSDT
Face Value0.0001BTC 
Price Quotation1BTC value calculated in USDT equivalent
Tick Size0.1
Trading Hours7×24
Settlement time08:00 AM(UTC)

EOS:

TermDescription
UnderlyingEOS/USDT index
Settlement coinUSDT
Face Value0.1EOS
Price Quotation1EOS value calculated in USDT equivalent
Tick Size0.001
Trading Hours7×24
Settlement time08:00 AM(UTC)

ETH:

TermDescription
UnderlyingETH/USDT index
Settlement coinUSDT
Face Value0.001ETH
Price Quotation1ETH value calculated in USDT equivalent
Tick Size0.01
Trading Hours7×24
Settlement time08:00 AM(UTC)

LTC:

TermDescription
UnderlyingLTC/USDT index
Settlement coinUSDT
Face Value1LTC
Price Quotation1LTC value calculated in USDT equivalent
Tick Size0.01
Trading Hours7×24
Settlement time08:00 AM(UTC)

BCH:

TermDescription
UnderlyingBCH/USDT index
Settlement coinUSDT
Face Value0.1BCH
Price Quotation1BCH value calculated in USDT equivalent
Tick Size0.01
Trading Hours7×24
Settlement time08:00 AM(UTC)

XRP:

TermDescription
UnderlyingXRP/USDT index
Settlement coinUSDT
Face Value100XRP
Price Quotation1XRP value calculated in USDT equivalent
Tick Size0.1
Trading Hours7×24
Settlement time08:00 AM(UTC)

ETC:

TermDescription
UnderlyingETC/USDT index
Settlement coinUSDT
Face Value10ETC
Price Quotation1ETC value calculated in USDT equivalent
Tick Size0.001
Trading Hours7×24
Settlement time08:00 AM(UTC)

BSV:

TermDescription
UnderlyingBSV/USDT index
Settlement coinUSDT
Face Value1BSV
Price Quotation1BSV value calculated in USDT equivalent
Tick Size0.01
Trading Hours7×24
Settlement time08:00 AM(UTC)

TRX:

TermDescription
UnderlyingTRX/USDT index
Settlement coinUSDT
Face Value1000TRX
Price Quotation1TRX value calculated in USDT equivalent
Tick Size0.00001
Trading Hours7×24
Settlement time08:00 AM(UTC)

3.Fee

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