Aibit Perpetual Futures is a USDT Perpetual Futures(forward futures) that utilizes USDT as the unified margin. USDT Perpetual Futures are a type of crypto asset derivative product, allowing users to profit from the price increase or decrease of crypto assets by predicting their direction and choosing to either buy long or sell short Futures. Similar to a spot market for collateral assets, it is priced in USDT and utilizes leverage to amplify position, thereby increasing capital utilization. USDT Perpetual Futures support leverage of up to 100x. There is no expiration date for USDT Perpetual Futures, allowing users to hold positions indefinitely.
Perpetual Futures Mechanism
Margin Rate and Forced Liquidation: The liquidation of Futures is primarily determined by the margin rate. When the margin rate of a contract position falls below or equal to 100%, it triggers forced liquidation. The specific liquidation risk rate may vary for different Futures trading pairs and can be found on the trading interface.
Margin rate = (Isolated Margin Balance + Unrealized PNL) / (Position Amount * Mark Price * (Maintenance Margin rate + Taker Fee Rate))
Funding Fees: Aibit implements a funding fee mechanism to ensure that the Futures price aligns with the fair market price. The platform does not charge any funding fees. The actual funding fee that users receive depends on the total amount deducted from the counterparty's account by the system. The funding fee is paid between buyers and sellers every 8 hours. If the funding rate is positive, long position holders will pay the fee, while short position holders will receive the fee. If the funding rate is negative, short position holders will pay the fee, and long position holders will receive the fee. (Funding fees are only applicable when the net position is non-zero during the funding fee settlement time.
Funding fees settlement time（UTC）:00:00 8:00 16:00。
Differences Between Perpetual Futures and Spot Trading
In simple terms, spot trading is based on the value of the underlying asset, and profit can only be made if the asset's price increases after purchase. Perpetual Futures, on the other hand, allow for both long and short positions, enabling traders to profit from both upward and downward price movements. Additionally, the prudent use of leverage in futures trading can enhance capital utilization.
Perpetual Futures settle three times a day under normal circumstances, with a settlement period of 8 hours. During this time, there is no forced liquidation due to delivery during this period, which eliminates the need to repeatedly open new positions.
During each settlement, perpetual futures charge funding fees based on the positive or negative funding rate. These fees are collected from long or short position holders and redistributed to the opposite side.
Spot trading involves the buying and selling of crypto assets, while Perpetual Futures do not involve physical delivery. There are no time restrictions for opening or closing positions in Perpetual Futures, but it is essential to monitor the risk exposure in real-time to avoid forced liquidation.