Perpetual Contract Spec
New contract pairs will be added in time, and an open market creation tool is being proposed for development. Join our Discord to discuss if you have ideas or suggestions!
Symbol | BTC/USDC |
Expiry Date | Perpetual |
Quote Asset | USDC |
Initial Margin | 10% |
Maintenance Margin | 5% |
Funding Interval | 1 hour |
Contract Size | 1 USDC |
Minimum Lot Size | 10 |
Order Limit | TBD |
Transaction Fees | 0.1% on the notional value |
Underlying Index | |
Margin | Isolated |
Symbol | ETH/USDC |
Expiry Date | Perpetual |
Quote Asset | USDC |
Initial Margin | 10% |
Maintenance Margin | 5% |
Funding Interval | 1 hour |
Contract Size | 1 USDC |
Minimum Lot Size | 10 |
Order Limit | TBD |
Transaction Fees | 0.1% on the notional value |
Underlying Index | |
Margin | Isolated |
Perpetual Protocol follows FTX's method to calculate the funding payments. It is calculated as shown below:
TWAP_perpetual
The 1 hour TWAP of the Mark Price.
TWAP_index
The 1 hour TWAP of the Index Price. (from oracle)
TWAP: Time weighted average price
The funding payment is calculated every hour for all long and short positions. If the fundingPayment is positive, every long position holder has to pay short position holders the funding payment, and vice versa if the fundingPayment is negative. This incentivizes traders to drive the mark price toward the index price.
Once traders' marginRatio falls below the marginRequirementRatio threshold (currently 5% - this could be updated by governance), Keepers can liquidate the collateral and earn fees. The marginRatio is calculated as:
The unrealizedPnL is calculated twice using both Mark Price and 15 minute TWAP of Mark Price; the higher of the two values is used.
When positions are liquidated, keepers get 2.5% (could be updated by governance) of the openPositionNotionalSize as liquidation fees. The remaining collateral are then deposited into the Insurance Fund.
If the collateral is not enough to pay for the liquidation fees, funds are withdrawn from the Insurance Fund to make up the difference.
