What is a "time-based" futures contract?
A time-based futures contract is a contract that has an expiry date. The expiry date determines when the position will be closed. With a time-based contract, you can enter or exit the market whenever you like.
The features of a time-based contract are:
- Expiry Date: It has an expiry date. (Quarterly / Monthly)
- Market Price: The last buy / sell price
- Underlying Asset of each contract is: 1/1000th of the corresponding digital currency
- PnL Base: All PnL can be settled in USD / BTC / USDT / TUSD / USDC
- Leverage: Allows you to enter a futures position that is worth much more than you are required to pay upfront. Leverage is the ratio of the initial margin to the order value of a contract
- Margin: Funds required in order to open and maintain a position. You can use both fiat and digital assets as your margin.
- The price of your digital asset margin is calculated based on an executable market price that is representative of your asset quality and market liquidity. This price may differ slightly from the prices you see on the spot market
- Liquidation: When the mark price reached your liquidation price, the liquidation engine will take over your position
- Mark Price: Time-based contracts use the mark price to determine your unrealized PnL and when to trigger the liquidation process
- Funding Fees: Periodic payments exchanged between the buyer and seller every 8 hours
Expiration Settlement Process
If your position reached its expiration time, the system will use the Moving Average Price to close your position and calculate your profit and loss.
* Moving Average Price: The average of the Spot Index Price, which will be collected every second for the last hour before expiration, a total of 3600 data points.
Expiration Settlement PnL Calculation
Shorts = (Position Entry Price - Moving Average Price) x Contract Multiplier x Contract Size
* If you exit the market before the expiration time:
Shorts = (Position Entry Price - Market Price) x Contract Multiplier x Contract Size
The 3rd Friday of the month, the system will send you a roll over notification. If you would like to continue holding your position., you can close this month's contracts, then roll over to the following month's contracts.
Contract Month Codes