Derivatives Innovation: Summit AscendEX Multi-currency Mixed Margin "Simplicity and Compliance"
Cryptocurrency futures contracts (referred to as "contracts") are innovative financial derivatives. In a contract transaction, the buyer's position is to agree to receive a certain encrypted asset at a certain price after a certain period of time, while the seller's position is to agree to deliver a certain encrypted asset at a certain price after a certain period of time.
secondary title
USDT standard perpetual contract
Perpetual contracts, as a new type of derivatives based on delivery contracts, have the advantages of no delivery date and long-term holding positions. They are currently popular among cryptocurrency exchanges and are popular among investors. At the same time, perpetual contracts are more suitable for long-term investment than delivery contracts.
In the perpetual contract, the USDT standard means that the deposit for opening a position, pricing and settlement are all based on USDT. As a stable currency, the price fluctuation of USDT is very small, so the USDT standard perpetual contract has the characteristics of simple and worry-free investment operations.
In addition, with the cooperation of the leverage mechanism, the amount of trading funds can be effectively enlarged. Although this can greatly reduce the threshold for market capital access, it will also increase the risk of trading accordingly. Therefore, investors often need to deposit a certain percentage of margin in the contract account to ensure the normal development of contract transactions.
Taking AscendEX contract trading as an example, if you open a leveraged contract position, the margin rate of the account must be greater than or equal to the initial margin rate; and if you want to maintain the position, it needs to be greater than or equal to the maintenance margin rate.
secondary title
initial margin
The so-called initial margin refers to the minimum amount of margin required to open a contract. According to the specific size of the position, the initial margin rate of the account ranges from 1% to 33.33%.
secondary title
maintenance margin
On the other hand, maintenance margin refers to the minimum amount of margin required for the normal position of the current contract. Depending on the size of the account position, the maintenance margin rate ranges from 0.6% to 20%.
secondary title
Cross margin, isolated margin mode
In terms of margin utilization and settlement methods, it can be divided into two modes: cross margin and isolated margin. Among them, the cross-margin mode means that after the user opens a position, the profits and risks of all positions in the contract account are consolidated and settled, and the margin required for the position will change with the latest transaction price.
In the isolated position mode, the contract positions will independently settle the margin and income. In case of forced liquidation due to violent price fluctuations, the loss is limited to the margin of the current position, and the margin of other positions in the account will not be affected. The specific differences are as follows:
Considering the uncertainty of the encryption market, in order to protect the interests of investors as much as possible, the summit AscendEX contract system will first try to reduce the size of the account position of the contract-related trading order when the market is unfavorable, so as to reduce the position and reduce the fee rate, and postpone the liquidation .
During this process, if the market is still developing in the direction of unfavorable positions and the market lacks sufficient liquidity to mitigate risks, when the account margin rate is lower than the takeover margin rate (1/2 of the maintenance margin rate), the bad account position will be transferred from the liquid The security provider BLP takes over the processing.
secondary title
Popular currencies "hand in hand" peak
In 2021, Summit AscendEX will increase its efforts to give full play to its traditional financial advantages, and implement "centralized" innovative construction of financial derivatives such as futures contracts. Many popular, high-quality currencies and unique perpetual contracts have rapidly expanded the platform's derivatives. The ecological scale of the product.
Among them, classic currencies BTCUSDT, ETHUSDT, XRPUSDT, BCHUSDT, and ADAUSDT perpetual contracts needless to say, the popular cross-chain Polkadot ecology, the star public chain project Solana, and the popular second-layer expansion solution Matic Network, namely DOTUSDT, LINKUSDT , SOLUSDT, SRMUSDT, and MATICUSDT perpetual contracts have been launched successively. In addition, the popular currencies DOGEUSDT, BNBUSDT and TRXUSDT perpetual contracts also came in droves.
It is worth mentioning that Summit AscendEX also exclusively launched CSPRUSDT and OMIUSDT perpetual contracts, opening up a new derivatives investment path to meet the trading needs of different users.
secondary title
Give people with "simplification", not "borrow" as a premise
For most users, the process of exchanging their currency into USDT in contract transactions is not only cumbersome, but also incurs handling fees, and in the process of adding margin, it is very easy to delay the account due to various reasons. This is likely to cause incalculable asset losses. At the same time, when the market is favorable, with the conversion of the holding currency into USDT, the rising income that should have been obtained will disappear in an instant.
In addition, industry platforms often adopt the method of "borrowing" when it comes to contract mixed margin business, allowing users to obtain USDT by mortgaging other assets, and there are corresponding quota restrictions. In this way, not only the liquidity of the mortgage currency is locked, but regardless of redundant operations and corresponding interest, at least there is undoubtedly a certain deviation in the fluency of contract transactions.
Based on the in-depth investigation and analysis of the current market situation, the peak AscendEX contract team combined with the platform's overall plan for the ecological development of derivatives, in the construction of the mixed margin system, insisted on excluding all substantive mortgage links, and launched it in the simplest and most economical way The purely multi-currency margin solution makes the idea of directly using non-U assets to open positions and use them as margin and handling fees become a reality.
secondary title
"Revenue Sharing" for Multiple Accounts of Margin Currency
In addition to flexible transfers between accounts, during the margin period, the value appreciation of supported currencies is not subject to any freezing restrictions. As long as the contract margin is maintained within a safe range, users can transfer out assets at any time to obtain increased returns. In other words, the positive factors of the spot market will not affect the profitability of assets used as contract margins. In the process of mutual transfer, there will be no additional handling fees.
With the blessing of AscendEX's mixed margin system, the continuity of contract transactions can not only be maximized, but also asset losses caused by improper currency exchange operations will be basically avoided. In particular, users can directly obtain the display of the margin amount automatically converted into USDT without going through exchange, mortgage, sale, etc.
secondary title
Low discount boosts "high utilization rate"
In contract transactions, non-USDT assets used as margin, except USDC and PAX, will have a certain percentage of discount rate. The final amount of the contract margin is jointly determined by the transferred assets, the discount rate and the index price. That is to say, the USDT deposit actually displayed in the account is the amount of the transferred currency after discounting.
Currently, AscendEX has controlled the discount rate of all margin currencies above 90%, among which BTC and ETH are as high as 98% and 95% respectively, which means that users use mixed margin at almost zero cost This function.
secondary title
Strictly match the leverage factor to strengthen the "source" of risk control
Since contract trading supports the use of leverage to amplify the actual transaction amount, almost all cryptocurrency contract trading systems have the option of leverage multiples. However, when investors use leverage to obtain greater returns, their trading risks are also multiplied.
Based on years of experience in the traditional financial industry, the AscendEX contract team has tentatively set the maximum supportable leverage of each category of contracts on the platform at 1 to 100 times after comprehensively weighing various risk control elements in the current market environment.
In line with the corporate core values of "efficiency, transparency, and stability" and the core concept of "serving users", AscendEX will always insist on creating low-cost, easy-to-operate investment supporting functions for users in the process of vigorously expanding the ecosystem of platform derivatives .
Regardless of whether it is to meet the barrier-free entry of multiple assets into the contract account, or to build an investment environment based on maintaining the independence of spot and contract account income, the mixed margin system launched by AscendEX is a model.
Risk warning: users need to make a risk assessment according to their actual situation before investing, and make rational and prudent investments within the acceptable range.
Risk warning: users need to make a risk assessment according to their actual situation before investing, and make rational and prudent investments within the acceptable range.
Click the link to register and trade Bitcoin and other digital currency contracts, and the handling fee can be reduced by 25%
https://asdx.io/register?inviteCode=BY7NA0MUE
Digital currency trading platform Bitcoin trading platform AscendEX (BitMax)
