Perpetual Contract Spec

Supported Perpetual Contracts

BTC/USDT

Symbol

BTC/USDT

Expiry Date

Perpetual

Quote Asset

USDT

Initial Margin

10%

Maintenance Margin

5%

Funding Interval

1 hour

Contract Size

1 USDT

Minimum Lot Size

10

Order Limit

TBD

Transaction Fees

0.1% on the notional value

Underlying Index

Chainlink Price Reference Data

Margin

Isolated

ETH/USDT

Symbol

ETH/USDT

Expiry Date

Perpetual

Quote Asset

USDT

Initial Margin

10%

Maintenance Margin

5%

Funding Interval

1 hour

Contract Size

1 USDT

Minimum Lot Size

10

Order Limit

TBD

Transaction Fees

0.1% on the notional value

Underlying Index

Chainlink Price Reference Data

Margin

Isolated

Funding Payments

Perpetual Protocol follows FTX's method to calculate the funding payments. It's calculated as shown below:

fundingPayment=positionSizeTWAPperpetualTWAPindex24fundingPayment = positionSize * {TWAP_{perpetual} - TWAP_{index} \over 24}
  • TWAP_perpetual

    • The 1 hour TWAP of Mark Price.

  • TWAP_index

    • The 1 hour TWAP of Index Price. (from oracle)

The funding payment is calculated every hour for all long and short positions. If the fundingPayment is positive, every long position has to pay short position the funding payment, and vice versa if the fundingPayment is negative.

Liquidation

Once traders' marginRatio falls below the marginRequirementRatio threshold (5% - this could be updated by governance), Keepers can liquidate the collateral and earn fees. The marginRatio is calculated as:

marginRatio=margin+unrealizedPnLopenPositionNotionalSizemarginRatio = {margin + unrealizedPnL \over openPositionNotionalSize}

The unrealizedPnL is calculated twice using both Mark Price and 15 minutes TWAP of Mark Price, whichever is higher.

Once the positions get liquidated, keepers get 2.5% (could be updated by governance) of the openPositionNotionalSize as the liquidation fees. The remaining collateral are then deposited into the Insurance Fund.

If the collateral is not enough to pay for the liquidation fees, the funds are withdrawn from the Insurance Fund to make up the difference.