- What is the MXC matcha perpetual contract?
Perpetual contract is a derivative product similar to leveraged spot trading, and is different from traditional futures: it has no expiration time, so there is no limit on position time. In order to ensure that the underlying price index is tracked, the permanent contract uses the cost of capital mechanism to ensure that its price closely follows the price of the underlying asset.
MXC provides users with currency-based contracts (reverse contracts) and USDT-based contracts (forward contracts).
2. The market mechanism of perpetual contracts
When trading perpetual contracts, traders need to understand several mechanisms of the perpetual market. The key parts to pay attention to when trading are:
Position marking: Perpetual contracts use reasonable price marking methods. The marked price determines the unrealized profit and loss and the liquidation price.
Initial margin: Determine how much leverage you can use to establish a position.
Maintenance margin: Maintenance margin is the level of margin required to maintain the minimum position.
Funding costs: Between the buyer and the seller, regular payments are made every 8 hours. If the interest rate is positive, long positions will be paid, while short positions will receive the funding rate; if the interest rate is negative, the opposite is true.
Please note that you only need to pay or collect funding fees when you hold a position when the timestamp is exchanged.
3. Capital cost
The cost of capital is the core operating mechanism of the MXC permanent contract.
(1) Exchange time: 0:00 (UTC + 8), 8:00 (UTC + 8), 16:00 (UTC + 8)
(2) Calculation formula of capital cost:
The formula for calculating the cost of funds you receive or pay is as follows:
Capital cost = capital interest rate * position value. When the capital interest rate is positive, the long position pays short; when the financing interest rate is negative, the short position pays long.
Funding rate=Clamp(MA((mid-market price-index price) / index price-interest rate difference), a, b)
Handicap middle price = (contract buying price + contract selling price)/2
The fund rate is calculated every minute and will be calculated at 23:59, 07:59 and 15:59 when the funds are collected. Funding rate is charged by funds.
The value of your position has nothing to do with leverage. For example, if you hold 100 BTCUSDT contracts, the collection/spending of funds will be based on the notional value of these contracts, rather than on the margin you allocated for the position.
Traders can view the current capital ratio in the market in the "funding ratio" indicator column of the market title.
For historical exchange rates, see History of Capital Exchange Rates.
(3) The relationship between MXC perpetual contract and capital costs
MXC perpetual contract does not charge any funding fees; funding fees are charged between users. When the funding rate is positive, the long pays for the short; when the funding rate is negative, the short pays for the long.
4. Handling fees
The MXC fee is as follows (for ordinary users):
Maker charges 0.02%
Taker charges 0.06%
Note: If the contract fee is negative, the corresponding fee will be refunded.
5. Explanation of key terms in capital
Wallet balance = transfer in gold-transfer out gold + realized profit and loss
Realized profit and loss = total closing profit and loss + total handling fee + total capital cost
Total equity = wallet balance + unrealized profit and loss
Position margin = funds for operating position guarantees, generally including the user’s full position and all position margins of the user; it should be noted that the position margin of the contract in mxc only includes the user’s position margin and the beginning of the full position Margin, excluding floating margin under full position
Entrusted margin = frozen funds of all active entrusted;
Available = Wallet balance-warehouse-by-warehouse position margin-full warehouse initial margin-commission freeze
Net asset balance = funds available for user funds transfer and new positions
Unrealized profit and loss = sum of all floating profit and loss