What is a perpetual contract？

1. Introduction to Monochrome USD-M Futures

Monochrome USD-M Futures is a virtual contract product launched by Monochrome to settle with USDT. Each contract represents a certain amount of digital currency (such as a BTCUSDT perpetual, where each contract represents 0.01BTC). Investors stors can buy multi-contracts to obtain the benefits of the rise of virtual digital currency prices or obtain virtual digital currency gains by shorting.

2. The market mechanism of perpetual contracts

When trading perpetual contracts, traders need to understand several mechanisms of the perpetual market. The key parts that you need to pay attention to when trading are:

• Position Marking: Perpetual swaps use the fair price marking method. The marked price determines the unrealized profit and loss and the liquidation price.
• Initial Margin: Determines how much leverage you can use to open a position.
• Maintenance Margin: Maintenance margin is the minimum level of margin required to maintain a position.
• Funding Fee: A fee is periodically paid every 8 hours between the buyer and seller. If the rate is positive, long positions will pay and short positions will receive the funding costs, and vice versa if the rate is negative.

Note that you only pay or receive funding fees if you hold a position at the time of the exchange timestamp.

Traders can see the current funding rate of the market in the "funding rate" indicator column of the market header.

3. Funding costs

Exchange time: 00:00 (UTC+8), 08:00 (UTC+8), 16:00 (UTC+8)

The value of your position is independent of leverage. For example, if you hold 100 BTCUSDT contracts, funds will be charged/disbursed based on the notional value of those contracts, not based on how much margin you have allocated to the position. 

Traders can see the current funding rate of the market in the "funding rate" indicator column of the market header.

The relationship between Monochrome perpetual contracts and funding fees：

Monochrome perpetual contracts do not charge any funding fees; funding fees are collected between users. When the funding rate is positive, longs pay shorts; when the funding rate is negative, shorts pay longs.

4. Handling fees

Monochrome fees are as follows (standard users):

• Maker fee: 0.04%
• Taker fee: 0.06 %

Note: If the contract fee is negative, the corresponding fee will be returned.