Perpetual Contract FAQs – XCoin Service

What is a forward perpetual contract?

Perpetual swaps are contract products settled in digital assets. Investors can profit from rising or falling digital asset prices by buying long or selling short. Perpetual swaps have no expiration date and never expire.

Forward perpetual swaps, also known as USDT perpetual swaps, are linear perpetual swaps denominated in USDT. Traders can use USDT as margin to place long or short orders, with no expiration restrictions.

Leverage for forward perpetual contracts

What is the maximum leverage?

You can choose the leverage ratio when trading. The leverage ratio determines the initial margin and the maximum open value. You can adjust the leverage ratio according to your needs.

Fees

There are three types of fees associated with futures trading:

Transaction Fee (incurred each time an order is executed)
Funding Fee (incurred at regular intervals. If the funding rate is positive, long positions pay short positions; if the funding rate is negative, short positions pay long positions.)
Forced Liquidation Fee (incurred when a position is forced to liquidate)

Frequently Asked Questions about Option Contracts

What is a forward perpetual contract?

USDT-margined futures contracts are quoted, settled, and collateralized in USDT.

Quarterly futures contracts are derivatives contracts with fixed expiration and delivery dates, with the delivery date being the last Friday of each quarter. For example, "BTCUSDT-26SEP25" means delivery on September 26, 2025, at 16:00 (UTC+8).
After the settlement and delivery of a quarterly contract, a new quarterly contract will be generated. For example, after the "BTCUSDT-26SEP25" contract is delisted at 16:00 (UTC+8) on September 26, 2025, a new "BTCUSDT 26DEC25" contract will be generated, and so on.
A delivery fee will be charged at the settlement date, which is the same as the Taker fee rate.

How to calculate the closing price of a delivery contract upon expiration？

The expiration date of a futures contract can be found in the contract name. For example, BTCUSD-26SEP25 means that the contract expires on September 26, 2025.

1. At the delivery time, the system will close all open positions for the quarterly futures contracts using the arithmetic average of the spot index prices per second over the last half hour as the delivery price. Profits and losses incurred after delivery and closing will be added to realized profits and losses.

2. If there are still unfulfilled forced liquidation orders by the time of delivery, the positions will be settled at the delivery price.

3. Realized profits and losses for the quarterly futures contracts will be added to the account balance, and delivery and settlement will be completed.

4. If market manipulation or market anomalies occur around the delivery and settlement times, causing significant index fluctuations, delivery and settlement may be delayed based on the specific circumstances. Specific rules will be announced in a public announcement.

Delivery Time: 4:00 PM (UTC+8) on the last Friday of the quarter.