FUTX employs the multi-asset collateral mechanism for perpetual futures contracts.
What’s Initial Margin for futures contracts?
Initial Margin is the minimum amount of collateral required to open a futures order. (Initial Margin Rate is the reciprocal of leverage users set)
For example, a user with the collateral balance of 1,000 USDT in his/her futures account opens a BTC/USDT position with the 5x leverage. The notional value of the position is 5,000 USDT, and the initial margin rate is 20% (1/5). With the leverage elevated to 50x, the notional value of the position is 50,000 USDT and the initial margin rate is 2% (1/50).
What’s Maintenance Margin for futures contracts?
When trading FUTX Futures, a user must have Collateral Balance meeting or exceeding the Maintenance Margin requirement to maintain an open position on a leveraged contract. The position will be liquidated if the user’s Collateral Balance becomes less than the Maintenance Margin requirement.
*Collateral Balance = Total Collateral + Unrealized Profit and Loss. Positions in the futures account will be liquidated when the collateral balance is less than the maintenance requirement.
Account Margin Rate = Maintenance Margin / Collateral Balance. Positions in a futures account will be liquidated when the account margin rate reaches 100%.
For example, an account with $40,000 worth of BTC/USDT positions must maintain a collateral balance of at least $240, or 0.6% of the notional value of the open positions, must be held to avoid forced liquidation. The positions will be liquidated if the Account Margin Rate becomes less than 0.6%. (See Risk Limit below for more data.)
The Takeover Margin rate is equal to ½ of the Maintenance Margin Rate. When the Account Margin Rate falls below the Takeover Margin Rate, at any point, the account will be taken over, and its distressed positions will be offloaded to Backstop Liquidity Providers.
What’s futures leverage?
FUTX futures trading support a leverage range of 1x-100x. The leverage available for some popular futures trading pairs are listed in the Risk Limit chart below. FUTX futures users may adjust their existing leverage without any fee.
See below for the Risk Limit details.
| BTC/USDT-PERP（Y: Current positions’ value） | ||
| Position Value of Y (USDT) | Max Leverage | Maintenance Margin |
| 0≤Y＜50,000 | 100 | 0.60% |
| 50,000≤Y＜200,000 | 50 | 1.20% |
| 200,000≤Y＜1,000,000 | 25 | 2.40% |
| 1,000,000≤Y＜5,000,000 | 10 | 6.00% |
| 5,000,000≤Y＜10,000,000 | 5 | 12.00% |
| Y≥10,000,000 | 3 | 20.00% |
| ETH/USDT-PERP（Y: Current futures positions’ value） | ||
| Position Value of Y (USDT) | Max Leverage | Maintenance Margin |
| 0≤Y＜25,000 | 100 | 0.60% |
| 25,000≤Y＜100,000 | 50 | 1.20% |
| 100,000≤Y＜500,000 | 25 | 2.40% |
| 500,000≤Y＜2,500,000 | 10 | 6.00% |
| 2,500,000≤Y＜5,000,000 | 5 | 12.00% |
| Y≥5,000,000 | 3 | 20.00% |
| BCH/LINK/DOT/XRP/BNB/SOL/UNI/ADA/MATIC/TRX/USDT-PERP (Y: Current positions’ value) | ||
| Position Value of Y (USDT) | Max Leverage | Maintenance Margin |
| 0≤Y＜5,000 | 100 | 0.60% |
| 5,000≤Y＜20,000 | 50 | 1.20% |
| 20,000≤Y＜100,000 | 25 | 2.40% |
| 10,000≤Y＜500,000 | 10 | 6.00% |
| 500,000≤Y＜1,000,000 | 5 | 12.00% |
| Y≥1,000,000 | 3 | 20.00% |
| DOGE,CSPR,SRM,OMI,EGLD,WOO,VET,ONE,FIL,FTT,ETC (Y: Current positions’ value) | ||
| Position Value of Y (USDT) | Max Leverage | Maintenance Margin |
| 0≤Y＜1,000 | 50 | 1.20% |
| 1,000≤Y＜4,000 | 25 | 2.40% |
| 4,000≤Y＜20,000 | 10 | 6.00% |
| 20,000≤Y＜100,000 | 5 | 12.00% |
| 100,000≤Y＜200,000 | 3 | 20.00% |
| Y≥200,000 | 1 | 60.00% |
