Perpetual Contract Pro

<h2 id="h_01JRVNZVGA55J0VEHS0ZP9HPZ7">1.USDT Perpetuals Overview</h2>
<p> </p>
<p>USDT-margined perpetual futures are cryptocurrency derivatives settled in USDT. Each futures contract represents a certain quantity of the underlying cryptocurrency (for example, in a BTCUSDT futures contract, each contract represents 0.001 BTC). All USDT-margined futures contracts use USDT as the collateral asset, meaning users only need to hold USDT to trade various contract pairs.</p>
<p> </p>
<p>Traders can go long (buy) or short (sell) contracts to profit from price increases or decreases in cryptocurrencies. Leverage ranges from 1x to 125x.</p>
<p> </p>
<p>Taking BTCUSDT as an example, the futures contract details are as follows:</p>
<p> </p>
<div>
<table style="width: 100%;">
<colgroup>
<col>
<col>
</colgroup>
<tbody>
<tr>
<td><span class="wysiwyg-color-blue"><strong>Specification</strong></span></td>
<td><span class="wysiwyg-color-blue"><strong>Details</strong></span></td>
</tr>
<tr>
<td>Contract Underlying</td>
<td>BTC/USDT Index</td>
</tr>
<tr>
<td>Settlement Currency</td>
<td>USDT</td>
</tr>
<tr>
<td>Contract Size</td>
<td>0.001 BTC</td>
</tr>
<tr>
<td>Price Quotation</td>
<td>Quoted in USDT per 1 BTC</td>
</tr>
<tr>
<td>Minimum Price Movement</td>
<td>0.1</td>
</tr>
<tr>
<td>Leverage</td>
<td>1x to 125x</td>
</tr>
<tr>
<td>Trading Hours</td>
<td>24/7</td>
</tr>
<tr>
<td>Funding Fee Schedule</td>
<td>Daily at 00:00, 08:00, and 16:00 (UTC)</td>
</tr>
<tr>
<td>Fee Rate</td>
<td>
<p>Taker: 0.05% | Maker: 0.02%</p>
</td>
</tr>
</tbody>
</table>
</div>
<h2 id="h_01JRVPFCQEAM2EPC2VF1NWK73K"> </h2>
<h2 id="h_01JRVNZVGB0QBZQNTAE65DMJDW">2. Product Features</h2>
<p> </p>
<ol>
<li>
<strong>Settlement in USDT:</strong><br>USDT-margined futures contracts use USDT as the settlement currency. They are particularly suitable for users accustomed to fiat-margined futures, offering low transaction costs and simple calculations.<br><br>
</li>
<li>
<strong>No Expiration:</strong><br>Perpetual futures contracts do not have an expiration or delivery date — they never expire.<br><br>
</li>
<li>
<strong>Index Pricing Mechanism:</strong><br>USDT-margined futures contracts use a USDT-based index price for each underlying asset. To ensure the spot index reflects a fair market value, BTCC selects trading pairs from at least three mainstream exchanges for each contract and assigns them as index components. Anomalies are handled through a built-in logic that ensures index stability when a single exchange price deviates significantly.<br><br>
</li>
<li>
<strong>Price Limit Mechanism:</strong><br>BTCC dynamically adjusts the allowable order price range based on the spot price and the previous minute’s contract price. This helps prevent malicious manipulation (e.g., intentional price crashes to trigger liquidations) without affecting normal trading activity.<br><br>
</li>
<li>
<strong>Mark Price System:</strong><br>BTCC applies a mark price mechanism to its liquidation system. During extreme price volatility, the system uses the mark price, not the last-traded price, to determine liquidation, thereby reducing the risk of forced liquidations caused by abnormal trades and protecting users from manipulation.<br><br>
</li>
<li>
<strong>Tiered Maintenance Margin System:</strong><br>The maintenance margin rate is the minimum margin required to keep a position open. If a user’s margin rate falls below the maintenance margin rate plus the closing fee rate, forced liquidation or partial reduction of the position is triggered. BTCC implements a tiered system: the larger the position, the higher the required maintenance margin and the lower the maximum available leverage.<br><br>
</li>
<li>
<strong>Funding Fee Mechanism:</strong><br>Since perpetual contracts have no expiry, a funding fee mechanism keeps the contract price aligned with the spot price. Funding is exchanged every 8 hours — at 00:00, 08:00, and 16:00 (UTC). Users only pay or receive the funding fee if they hold positions at these times. No funding fee is charged if the position is closed before the funding time.<br><br>
</li>
<li>
<strong>One-Way Mode vs. Hedge Mode:</strong><br>
<ul>
<li>In One-Way Mode, a user can only hold a single position direction (long or short) per contract under one margin mode.</li>
<li> 
<ul>
<li>Example: If a user holds 10 BTCUSDT long contracts and sells 5, the position becomes 5 long contracts.<br><br>
</li>
<li>In Hedge Mode, users can hold both long and short positions for the same contract under one margin mode.</li>
<li> </li>
<li>Example: If a user holds 10 BTCUSDT long contracts and sells 5, they will then hold 10 long and 5 short contracts simultaneously.</li>
</ul>
</li>
</ul>
</li>
</ol>

USDT-Margined Perpetuals Overview

<h2 id="h_01JRVPJ50TRVDQ4HR55RNKFN5M">Overview</h2>
<p> </p>
<p>On the BTCC trading platform, users must first transfer assets into their Futures Pro account to access and experience the upgraded Futures Pro trading system. Trading data and asset data in the new Futures Pro system are separated from the original futures trading system, and they do not affect each other. Users can choose between Cross Margin or Isolated Margin modes in the Futures Pro system.</p>
<p> </p>
<h3 id="h_01JRVPJ50TTHQGPX358MAV2SNT">What is Cross Margin Mode?</h3>
<p> </p>
<p>In Cross Margin mode, all trading products that use the same currency for settlement can share margin balance. This means that contracts and leveraged positions with the same settlement currency in cross margin mode share margin, and profits and losses can be offset between them.</p>
<p> </p>
<h3 id="h_01JRVPJ50TRBDQP9H1QH421RPJ">What is Isolated Margin Mode?</h3>
<p> </p>
<p>In Isolated Margin mode, margin and PnL (Profit and Loss) are calculated separately for each position. Risks and returns are isolated, and the user is solely responsible for the PnL of each individual position. If forced liquidation occurs, only the margin of that specific position is lost, minimizing potential losses. In short, each position has its own dedicated margin, and in the event of liquidation, the maximum loss is limited to that margin.</p>
<p> </p>
<h2 id="h_01JRVPJ50TKWQPNE718SSVHKGF">Futures Pro Term Explanation</h2>
<div>
<table style="width: 100%;">
<colgroup>
<col style="width: 141px;">
<col style="width: 461px;">
</colgroup>
<tbody>
<tr>
<td><span class="wysiwyg-color-blue"><strong>Term</strong></span></td>
<td><span class="wysiwyg-color-blue"><strong>Explanation</strong></span></td>
</tr>
<tr>
<td>Total Equity</td>
<td>
<p>The total equity of a specific asset in the account, including both cross and isolated margin positions.</p>
<p>Total Equity = Account Balance of the Asset + Cross Margin Position PnL + Isolated Position Margin Balance + Isolated Position PnL</p>
</td>
</tr>
<tr>
<td>Available Margin (Cross)</td>
<td>
<p>The amount of margin currently available for opening cross margin perpetual futures positions under a specific asset.</p>
<p>Available Margin = Account Balance + ∑ Unrealized PnL of Cross Positions</p>
</td>
</tr>
<tr>
<td>PnL (Profit and Loss)</td>
<td>PnL = ∑ Unrealized PnL of Cross Positions + ∑ Unrealized PnL of Isolated Positions</td>
</tr>
<tr>
<td>Transferable</td>
<td>
<p>If Unrealized PnL (Cross) &gt; 0:</p>
<p>Transferable = Available Margin - Unrealized PnL (Cross)</p>
<p>If Unrealized PnL (Cross) &lt; 0:</p>
<p>Transferable = Available Margin</p>
</td>
</tr>
<tr>
<td>Margin Ratio</td>
<td>Margin Ratio = (Account Balance + ∑ Unrealized PnL of Cross Positions) / ∑ [Position Size × Mark Price × (Maintenance Margin Rate + Liquidation Fee Rate)]</td>
</tr>
<tr>
<td>Maintenance Margin</td>
<td>Maintenance Margin = ∑ Maintenance Margin of Cross Positions + ∑ Maintenance Margin of Isolated Positions</td>
</tr>
<tr>
<td>Available Margin (Isolated)</td>
<td>
<p>The amount available for opening new isolated positions when switched to isolated margin mode.</p>
<p>Available Margin (Isolated) = Max(0, Available Margin (Cross) - ∑ Unrealized PnL of Cross Positions)</p>
<p>Note: This field is used for order calculation only and is not displayed in asset information.</p>
</td>
</tr>
</tbody>
</table>
</div>
<h2 id="h_01JRVPMM2ZW5GGHTQV8JEGF205"> </h2>
<h2 id="h_01JRVPJ50TP3YTEB1FZQE8QQ4Q">Trading Rules</h2>
<h4 id="h_01JRVPJ50T9JHZK8QXB9WYFX90"><span style="color: #666666;">Cross Margin Order Validation Rules</span></h4>
<ul>
<li>When placing a perpetual futures order under Cross Margin mode, the available margin in the account must be greater than or equal to the required margin for that order.<br><br>
</li>
</ul>
<h2 id="h_01JRVPJ50TPDWK2SA7V2WJK8R7">Perpetual Futures under Cross Margin</h2>
<p>In Contract Pro mode, perpetual futures support One-Way and Hedge modes.</p>
<p> </p>
<p id="h_01JRVPJ50T8F8D7FEXBWXA1FBY"><strong><span style="color: #434343;">Position Fields</span></strong></p>
<div>
<table style="width: 100%;">
<colgroup>
<col style="width: 132px;">
<col style="width: 470px;">
</colgroup>
<tbody>
<tr>
<td><span class="wysiwyg-color-blue"><strong>Term</strong></span></td>
<td><span class="wysiwyg-color-blue"><strong>Explanation</strong></span></td>
</tr>
<tr>
<td>Position Size</td>
<td>In One-Way Position Mode, long positions are presented in positive numbers, and short positions are represented by negative numbers.</td>
</tr>
<tr>
<td>Average Entry Price</td>
<td>
<p>USDT-Margined Contracts:</p>
<p>(Previous Position Size × Previous Entry Price + New Position Size × New Entry Price) / (Previous Position Size + New Position Size)</p>
</td>
</tr>
<tr>
<td>PnL (Profit and Loss)</td>
<td>
<p>Current unrealized profit or loss of the position.</p>
<p>USDT-Margined Contracts:</p>
<p>Long PnL = Contract Size × Number of Contracts × Contract Multiplier × (Mark Price − Average Opening Price)</p>
<p>Short PnL = Contract Size × Number of Contracts × Contract Multiplier × (Average Opening Price − Mark Price)</p>
</td>
</tr>
<tr>
<td>Return Rate</td>
<td>Return Rate = PnL / Initial Margin</td>
</tr>
<tr>
<td>Initial Margin</td>
<td>
<p>USDT-Margined Contracts:</p>
<p>Initial Margin = Contract Size × Number of Contracts × Contract Multiplier × Mark Price ÷ Leverage Ratio</p>
</td>
</tr>
<tr>
<td>Maintenance Margin</td>
<td>
<p>USDT-Margined Contracts:</p>
<p>Maintenance Margin = Contract Size × Number of Contracts × Contract Multiplier × Maintenance Margin Rate for Position Level × Mark Price</p>
</td>
</tr>
</tbody>
</table>
</div>

Futures Pro Trading Rules: Cross & Isolated

<h3 id="h_01JRVQA8FS0WE04CKVC7360T7M">1. Deposit Funds to Futures Pro Account (Transfer)</h3>
<p> </p>
<p>To deposit funds into your Futures Pro account, make sure your Wallet Account has available USDT for transfer.</p>
<p> </p>
<p>Go to <strong>Assets</strong> &gt; <strong>Transfer</strong>, and move funds from your Wallet Account to your Futures Pro Account.<img src="https://btccexchange.zendesk.com/hc/article_attachments/45771212181529" alt="1.png" width="373" height="410"></p>
<p> </p>
<h3 id="h_01JRVQB6X04CWKNQFVZEY299XF">2. Cross Margin Trading Mode</h3>
<p> </p>
<p>1. Go to <strong>Futures</strong> &gt; <strong>USDT-M Perpetual Futures (Pro)</strong>, and select the desired futures pair.</p>
<p><img src="https://btccexchange.zendesk.com/hc/article_attachments/45771196767001" alt="2.png"></p>
<p> </p>
<p>2. In Cross Margin mode, set your leverage, choose <strong>Cross</strong> mode, and adjust the leverage according to your risk tolerance and strategy.</p>
<p> </p>
<p>3. Set the margin amount.</p>
<p> </p>
<p>4. Open a position. Based on your predictions, go long (buy) if you expect the price to rise, or short (sell) if you expect it to fall. You can place orders using Limit or Market orders.<br><img src="https://btccexchange.zendesk.com/hc/article_attachments/45771212181913" alt="3.png" width="289" height="514"><br><br></p>
<p><strong>Advantages of Cross Margin:</strong></p>
<p>• Shared margin across all positions reduces liquidation risk during market volatility.</p>
<p>• Enhances capital efficiency and lowers the need for margin top-ups.</p>
<p>• Losses in one position can be offset by profits in another, effectively managing overall risk.<br><br></p>
<h3 id="h_01JRVPP1WD00PEF2XW43GN7BKV">3. Isolated Margin Trading Mode</h3>
<p> </p>
<p>Select<strong> Isolated</strong> margin mode, adjust the leverage, set the margin, and open a position based on your market predictions.</p>
<p><br><img src="https://btccexchange.zendesk.com/hc/article_attachments/45771196767897" alt="4.png" width="273" height="521"></p>
<p> </p>
<p><strong>Advantages of Isolated Margin:</strong></p>
<p>• Losses are limited to the margin of the specific isolated position and do not affect other positions.</p>
<p>• Traders have better control over each position.</p>
<p>• Allows allocation of specific margin amounts per position based on individual risk preferences.</p>
<p> </p>
<p>For more information, please refer to <a href="https://www.btcc.com/en-US/support-center/detail/45771626861465">Margin Calculation Rules</a>.</p>
<p> </p>
<h3 id="h_01JRVQDKQJJXM5KCZDXPNKTN4A">4. One-Way &amp; Hedge Mode </h3>
<p> </p>
<p>Whether using Cross or Isolated margin, traders can choose between One-Way Mode and Hedge Mode. The default position mode is Hedge Mode.</p>
<p> </p>
<p>To switch between position modes, go to the top-right and tap the <strong>trade settings</strong> icon.<br><img src="https://btccexchange.zendesk.com/hc/article_attachments/45771212182425" alt="7.png" width="511" height="475"></p>
<p> </p>
<p><strong>Hedge Mode:</strong></p>
<p>• Allows traders to hold both long and short positions in the same contract simultaneously.</p>
<p>• Suitable for traders who are long-term bullish but short-term bearish on an asset.</p>
<p>• Enables quick shorting without affecting existing long positions.<br><br></p>
<p> </p>
<p><strong>One-Way Mode:</strong></p>
<p>• Traders hold only one directional position (either long or short) per contract.</p>
<p>• Opposite positions offset each other, simplifying management and merging exposure.</p>
<p>For more information, please refer to <a href="https://www.btcc.com/en-US/support-center/detail/45778231565977">PnL Calculation Rules</a>.</p>
<p> </p>

USDT-M Perpetual Futures Pro Trading Guide

<h2 id="h_01JRVQJM6057VBZHJ120RT307B">1. What is Margin?</h2>
<p> </p>
<p>In the cryptocurrency contract market, traders only need to deposit a small amount of funds as collateral, based on the contract price, at a certain ratio to participate in contract trading. This collateral is called the cryptocurrency contract margin.</p>
<p><br>In BTCC's USDT-margined Perpetual Contract Pro, users can trade in either Isolated Margin Mode or Cross Margin Mode, with different treatments for position margin and available assets. Users can choose according to their trading strategy or risk preferences.</p>
<p> </p>
<h2 id="h_01JRVQJM60M9PT1BX3F7K2F3PF">2. How is Margin Calculated?</h2>
<p> </p>
<p>BTCC provides two margin systems: Cross Margin and Isolated Margin.</p>
<ol>
<li>In Cross Margin Mode, all available funds in the Cross Margin account are considered available margin.<br><br>
<ul>
<li>Position Margin Calculation<br>
<ul>
<li>
<strong>USDT-Margined Contract Margin Calculation:</strong><br>Initial Margin = Contract Size * |Contract Quantity| * Contract Multiplier * Mark Price / Leverage,<br>The initial margin will fluctuate as the price of the traded asset changes.<br><br>
</li>
</ul>
</li>
</ul>
</li>
<li>In Isolated Margin Mode, each position's margin is calculated independently, and the profit and loss of each position do not affect others.<br><br>
<ul>
<li>
<strong>USDT-Margined Contract Margin Calculation:</strong><br>Opening Margin = Contract Size * |Contract Quantity| * Contract Multiplier * Opening Price / Leverage,<br>The initial margin remains fixed and unaffected by price changes.<br><br>
</li>
</ul>
</li>
</ol>
<h2 id="h_01JRVQJM60V07E7WFFE0KN8BCX">3. The Relationship Between Margin and Leverage</h2>
<p> </p>
<p>Leverage is a common financial trading system based on margin. It amplifies the trading amount, but it also increases both potential returns and risks.</p>
<p><br>For example, in Cross Margin Mode, when a user opens a position with a certain number of contracts, the Initial Margin = Position Value / Selected Leverage.</p>
<p><strong>Example:</strong><br>USDT-margined Contract<br>Assume the current BTC price is 10,000 USDT/BTC. A user wants to use 10x leverage to go long 1 BTC equivalent of a perpetual contract.<br>The user’s position size = Long BTC Quantity / Contract Size = 1 / 0.0001 = 10,000 contracts.<br>Initial Margin = Contract Size * Quantity * BTC Price / Leverage = 0.0001 * 10,000 * 10,000 / 10 = 1,000 USDT.</p>
<p> </p>
<h2 id="h_01JRVQJM607KSB1JVRHVRQB4W4">4. Margin Rate</h2>
<p> </p>
<p>Maintenance Margin: The minimum margin required by a user to maintain an existing position.</p>
<ol>
<li>Cross Margin<br>Position Margin Rate = (Margin Balance + Profit) / Σ(Contract Size * |Contract Quantity| * Mark Price * (Maintenance Margin + Liquidation Fee))<br>If there are multiple positions in different contract types, the required maintenance margin and liquidation fee are summed in the numerator.<br><br>
</li>
<li>Isolated Margin<br>Position Margin Rate = (Margin Balance + Profit) / (Contract Size * |Contract Quantity| * Mark Price * (Maintenance Margin + Liquidation Fee))<br>Each position is calculated independently, without affecting others.<br><br>
</li>
</ol>
<h2 id="h_01JRVQJM604CMZFD8JJC6FEBPV">5. What is Margin Call?</h2>
<p> </p>
<p>A Margin Call is unique to Isolated Margin Mode. Users can increase the margin for specific positions to control risk.</p>
<p> </p>
<h2 id="h_01JRVQJM60T6A9JXJNK5E9SG3P">6. Adjusting Position Leverage</h2>
<p> </p>
<p>BTCC’s digital asset contracts offer the function to adjust position leverage. When users wish to increase leverage, the system checks if the adjusted leverage is within the maximum leverage for the current contract size. If successful, the required margin for opening the position will decrease. When users reduce leverage, the required margin for the position will increase. If the system detects enough available balance for margin adjustment, the leverage change will be successfully executed.</p>
<p> </p>
<h3 id="h_01JRVQJM60E02P8D3R8NWG8FV8"><span style="color: #434343;">Disclaimer</span></h3>
<p> </p>
<p>This content is for reference only. It does not provide any investment, tax, or legal advice and should not be construed as an offer to buy, sell, hold, or provide any services related to digital assets. Holding digital assets involves high risks and may fluctuate significantly. You should carefully consider whether trading or holding digital assets is suitable for you based on your financial situation, especially when considering using leverage. For specific circumstances, please consult with your legal/tax/investment professionals. You are solely responsible for understanding and complying with applicable laws and regulations in your jurisdiction.</p>

Perpetual Contract Pro Margin Calculation

<p> </p>
<h2 id="h_01JRVZV2H50HT5KPSA3AADPNKQ">1. Single Currency Margin Mode - Cross Margin</h2>
<ol>
<li>Open and Close Position Mode (Hedge Mode)<br><img src="https://btccexchange.zendesk.com/hc/article_attachments/45778216272025" alt="10.png"><br><br>
</li>
<li>Buy and Sell Mode (One-Way)<br><img src="https://btccexchange.zendesk.com/hc/article_attachments/45778231557529" alt="11.png">
</li>
</ol>
<div>
<table style="width: 100%; height: 418px;">
<colgroup>
<col style="width: 152px;">
<col style="width: 449px;">
</colgroup>
<tbody>
<tr style="height: 22px;">
<td style="height: 22px;">Term</td>
<td style="height: 22px;">Explanation</td>
</tr>
<tr style="height: 44px;">
<td style="height: 44px;">Position Size</td>
<td style="height: 44px;">The amount of contracts, cryptocurrencies, or USDT held in the position.</td>
</tr>
<tr style="height: 22px;">
<td style="height: 22px;">Available to Close</td>
<td style="height: 22px;">Available to close = Position Size - Position occupied by close orders.</td>
</tr>
<tr style="height: 22px;">
<td style="height: 22px;" rowspan="4">Floating Profit/Loss</td>
<td style="height: 22px;">Current unrealized profit and loss.</td>
</tr>
<tr style="height: 22px;">
<td style="height: 22px;">1) USDT Margin Contracts</td>
</tr>
<tr style="height: 22px;">
<td style="height: 22px;">Long Position Profit = Position Size * (Mark Price - Opening Price)</td>
</tr>
<tr style="height: 22px;">
<td style="height: 22px;">Short Position Profit = Position Size * (Opening Price - Mark Price)</td>
</tr>
<tr style="height: 22px;">
<td style="height: 22px;">Profit Rate</td>
<td style="height: 22px;">Profit / Opening Margin</td>
</tr>
<tr style="height: 22px;">
<td style="height: 22px;">Initial Margin</td>
<td style="height: 22px;">Position Size * Mark Price / Leverage</td>
</tr>
<tr style="height: 22px;">
<td style="height: 22px;">Maintenance Margin</td>
<td style="height: 22px;">Position Size * Maintenance Margin Rate * Mark Price</td>
</tr>
<tr style="height: 22px;">
<td style="height: 22px;">Margin</td>
<td style="height: 22px;">Position Size * Mark Price / Leverage</td>
</tr>
<tr style="height: 22px;">
<td style="height: 110px;" rowspan="3">Estimated Liquidation Price</td>
<td style="height: 22px;">1) USDT Margin Contracts</td>
</tr>
<tr style="height: 44px;">
<td style="height: 44px;">Long Position Estimated Liquidation Price = (Margin Balance - Face Value *</td>
</tr>
<tr style="height: 44px;">
<td style="height: 44px;">Short Position Estimated Liquidation Price = (Margin Balance + Face Value *</td>
</tr>
<tr style="height: 44px;">
<td style="height: 44px;">Margin Rate</td>
<td style="height: 44px;">(Cross Margin Account Margin Balance + Floating Profit) / Σ (Position Value * (Maintenance Margin Rate + Liquidation Fee))</td>
</tr>
</tbody>
</table>
</div>
<p> </p>
<h2 id="h_01JRVZV2H5WMY8RNAA9XFDJE2P">2. Single Currency Margin Mode - Isolated Margin</h2>
<ol>
<li>Open and Close Position Mode (Hedge)<br><img src="https://btccexchange.zendesk.com/hc/article_attachments/45778231558425" alt="8.png">
</li>
<li>Buy and Sell Mode (One-Way)<br><img src="https://btccexchange.zendesk.com/hc/article_attachments/45778216274713" alt="9.png">
</li>
</ol>
<div>
<table style="width: 100%; height: 440px;">
<colgroup>
<col style="width: 165px;">
<col style="width: 437px;">
</colgroup>
<tbody>
<tr style="height: 22px;">
<td style="height: 22px;">Term</td>
<td style="height: 22px;">Explanation</td>
</tr>
<tr style="height: 44px;">
<td style="height: 44px;">Position Size</td>
<td style="height: 44px;">The amount of contracts, cryptocurrency, or USDT held in the position.</td>
</tr>
<tr style="height: 22px;">
<td style="height: 22px;">Available to Close</td>
<td style="height: 22px;">Available to close = Position Size - Position occupied by close orders.</td>
</tr>
<tr style="height: 22px;">
<td style="height: 88px;" rowspan="4">Profit</td>
<td style="height: 22px;">Current unrealized profit and loss.</td>
</tr>
<tr style="height: 22px;">
<td style="height: 22px;">1) USDT Margin Contracts</td>
</tr>
<tr style="height: 22px;">
<td style="height: 22px;">Long Position Profit = Position Size * (Mark Price - Opening Price)</td>
</tr>
<tr style="height: 22px;">
<td style="height: 22px;">Short Position Profit = Position Size * (Opening Price - Mark Price)</td>
</tr>
<tr style="height: 22px;">
<td style="height: 22px;">Profit Rate</td>
<td style="height: 22px;">Profit / Isolated Position Margin</td>
</tr>
<tr style="height: 22px;">
<td style="height: 22px;">Opening Margin</td>
<td style="height: 22px;">Opening Quantity * Opening Price / Leverage</td>
</tr>
<tr style="height: 44px;">
<td style="height: 44px;" rowspan="3">Estimated Liquidation Price</td>
<td style="height: 44px;">1) USDT Margin Contracts</td>
</tr>
<tr style="height: 44px;">
<td style="height: 44px;">Long Position Estimated Liquidation Price = (Margin Balance - Face Value *</td>
</tr>
<tr style="height: 44px;">
<td style="height: 44px;">Short Position Estimated Liquidation Price = (Margin Balance + Face Value *</td>
</tr>
<tr style="height: 22px;">
<td style="height: 22px;">Position Margin</td>
<td style="height: 22px;">Opening Margin + Manually Added (or Reduced) Margin</td>
</tr>
<tr style="height: 22px;">
<td style="height: 22px;">Maintenance Margin</td>
<td style="height: 22px;">Position Size * Maintenance Margin Rate * Mark Price</td>
</tr>
<tr style="height: 44px;">
<td style="height: 44px;">Margin Rate</td>
<td style="height: 44px;">(Position Margin + Floating Profit) / (Position Value * (Maintenance Margin Rate + Liquidation Fee))</td>
</tr>
</tbody>
</table>
</div>

Contract Pro Profit and Loss Calculation

<p>To ensure that the price of perpetual contracts better reflects the changes in the underlying market, the exchange has established a funding fee mechanism. This mechanism facilitates a periodic cash flow exchange between long and short position holders, guiding the price of the perpetual contract to converge with the index price.</p>
<p> </p>
<p>When the funding rate is positive, long position holders pay the funding fee to short position holders; conversely, when the funding rate is negative, short position holders pay the funding fee to long position holders. Please note that the BTCC platform only facilitates the funding fee exchange between long and short position holders, and does not charge any service fees.</p>
<p> </p>
<p>In general, BTCC processes funding fees three times a day, at 8:00, 16:00, and 24:00 (UTC+8), every 8 hours. Each perpetual contract's fee is calculated at millisecond intervals and does not interrupt trading. Traders holding open positions are obligated to pay or receive funding fees after the funding fee calculation is completed. If you close your position before the funding fee calculation, you will not be required to pay or receive any funding fees. Additionally, if the perpetual contract goes offline before the funding fee calculation, the funding fee for that period will be voided and will not be charged. The actual funding fee calculation may last up to one minute. For example, if a trader opens a position at 00:00:20 (UTC+8) and the funding fee calculation has not been completed yet, the trader may still be required to pay or receive funding fees.</p>
<p> </p>
<p>The timing of the funding fee payments and receipts may be adjusted in real-time based on market conditions.</p>
<p> </p>
<h2 id="h_01JRW0GF93N7DJBWJT8MR3BH1X">Funding Rate Calculation</h2>
<p> </p>
<p>To provide more professional trading services and enhance your trading experience, BTCC will change the funding rate calculation formula for perpetual contracts in three phases. For more details, please refer to the official documentation.</p>
<p> </p>
<p>The funding rate is calculated as follows:</p>
<p>Funding Rate=clamp[Average Premium Index+clamp(Interest Rate−Average Premium Index,0.05%,−0.05%),Funding Rate Cap,Funding Rate Floor]\text{Funding Rate} = \text{clamp} \left[ \text{Average Premium Index} + \text{clamp} \left( \text{Interest Rate} - \text{Average Premium Index}, 0.05\%, -0.05\% \right), \text{Funding Rate Cap}, \text{Funding Rate Floor} \right]Funding Rate=clamp[Average Premium Index+clamp(Interest Rate−Average Premium Index,0.05%,−0.05%),Funding Rate Cap,Funding Rate Floor]</p>
<ul>
<li>Interest Rate = 0.03% / (24 / Settlement Period)<br>Example: For the BTCUSDT perpetual contract with a settlement period of 8 hours, the interest rate is 0.01%.<br><br>
</li>
<li>Funding Rate Cap/Floor: For specific details, please refer to <a href="https://www.btcc.com/en-US/support-center/detail/45778727386137">this page</a>.<br><br>
</li>
<li>Premium Index = max⁡(0,Depth Weighted Buy Price−Index Price)−max⁡(0,Index Price−Depth Weighted Sell Price)Index Price\frac{\max (0, \text{Depth Weighted Buy Price} - \text{Index Price}) - \max (0, \text{Index Price} - \text{Depth Weighted Sell Price})}{\text{Index Price}}Index Pricemax(0,Depth Weighted Buy Price−Index Price)−max(0,Index Price−Depth Weighted Sell Price)​<br><br>
</li>
<li>The Average Premium Index is calculated using a weighted moving average, which takes the premium index of the past settlement period to the current one.<br>Example: The average premium index at time TnT_nTn​ is calculated as:<br>(1×Premium Index at T1)+(2×Premium Index at T2)+...+(n×Premium Index at Tn)1+2+...+n\frac{(1 \times \text{Premium Index at } T_1) + (2 \times \text{Premium Index at } T_2) + ... + (n \times \text{Premium Index at } T_n)}{1 + 2 + ... + n}1+2+...+n(1×Premium Index at T1​)+(2×Premium Index at T2​)+...+(n×Premium Index at Tn​)​<br>Suppose a contract settles funding fees every 8 hours, the funding rate at 14:59 will be calculated using the premium index from 7:00 to 14:59, with n=480n = 480n=480.<br><br>
</li>
<li>The Depth Weighted Buy (Sell) Price is the average price of the buy (sell) side based on the weighted trading depth.<br><br>
<ul>
<li>Depth Weighted Buy (Sell) Price = Depth Weighted AmountAmount of Currency Needed to Satisfy the Depth Weighted Amount\frac{\text{Depth Weighted Amount}}{\text{Amount of Currency Needed to Satisfy the Depth Weighted Amount}}Amount of Currency Needed to Satisfy the Depth Weighted AmountDepth Weighted Amount​<br><br>
</li>
<li>Example: Depth Weighted Amount = 20,000.<br><br>
</li>
</ul>
</li>
</ul>
<p>The funding rate is calculated every minute, and the funding fee at the settlement time will be based on the funding rate at that time.<br>Example: At 16:00, the funding rate used for the funding fee calculation is the one calculated at 16:00.</p>
<p> </p>
<h3 id="h_01JRW0GF93MB1Y6FYRK9A3BEG4">BTCUSDT Perpetual Contract Depth Weighted Buy Price Calculation Example</h3>
<p> </p>
<p>Assume the Depth Weighted Amount = 20,000 USDT.</p>
<div>
<table style="width: 106.143%; height: 445px;">
<colgroup>
<col style="width: 64px;">
<col style="width: 66px;">
<col style="width: 93px;">
<col style="width: 379px;">
</colgroup>
<tbody>
<tr>
<td><span class="wysiwyg-color-blue"><strong>Buy Depth Level</strong></span></td>
<td><span class="wysiwyg-color-blue"><strong>Order Price</strong></span></td>
<td><span class="wysiwyg-color-blue"><strong>Depth Quantity per Level (BTC)</strong></span></td>
<td><span class="wysiwyg-color-blue"><strong>Calculation Process</strong></span></td>
</tr>
<tr>
<td>1</td>
<td>90,000</td>
<td>0.02</td>
<td>The order value at this depth level = 90,000 × 0.02 = 1,800 USDT. The entire depth quantity at this level (0.02 BTC) will be used to calculate the weighted buy price.</td>
</tr>
<tr>
<td>2</td>
<td>89,900</td>
<td>0.06</td>
<td>The order value at this depth level = Order value at Buy Level 2 + Order value at Buy Level 1 = 89,900 × 0.06 + 1,800 = 7,194 USDT. The entire depth quantity at this level (0.06 BTC) will be used to calculate the weighted buy price.</td>
</tr>
<tr>
<td>3</td>
<td>89,700</td>
<td>0.16</td>
<td>The order value at this depth level = Order value at Buy Level 3 + Order value at Buy Levels 1 and 2 = 89,700 × 0.16 + 7,194 = 21,546 USDT. The required depth weighted amount at this level = 20,000 - 7,194 = 12,806 USDT. The required depth quantity (BTC) = 12,806 / 89,700 = 0.14276 BTC. The weighted buy price = 20,000 / (0.02 + 0.06 + 0.14276) = 89,780.8 USDT.</td>
</tr>
</tbody>
</table>
</div>
<h2 id="h_01JRW0K7JKJZJTM9CMSCQ2RAM1"> </h2>
<h3 id="h_01JRW0GF93Y2ABGTADA0RQ0QWF">BTCUSDT Perpetual Contract Depth Weighted Sell Price Calculation Example</h3>
<p> </p>
<div>
<table style="width: 106.571%; height: 471px;">
<colgroup>
<col style="width: 64px;">
<col style="width: 66px;">
<col style="width: 92px;">
<col style="width: 380px;">
</colgroup>
<tbody>
<tr style="height: 89px;">
<td style="width: 10.5714%; height: 89px;"><span class="wysiwyg-color-blue"><strong>Sell Depth Level</strong></span></td>
<td style="width: 11%; height: 89px;"><span class="wysiwyg-color-blue"><strong>Order Price</strong></span></td>
<td style="width: 15.2857%; height: 89px;"><span class="wysiwyg-color-blue"><strong>Depth Quantity per Level (BTC)</strong></span></td>
<td style="width: 63%; height: 89px;"><span class="wysiwyg-color-blue"><strong>Calculation Process</strong></span></td>
</tr>
<tr style="height: 67px;">
<td style="width: 10.5714%; height: 67px;">1</td>
<td style="width: 11%; height: 67px;">90,000</td>
<td style="width: 15.2857%; height: 67px;">0.02</td>
<td style="width: 63%; height: 67px;">The order value at this depth level = 90,000 × 0.02 = 1,800 USDT. The entire depth quantity at this level (0.02 BTC) will be used to calculate the depth-weighted buy price.</td>
</tr>
<tr style="height: 111px;">
<td style="width: 10.5714%; height: 111px;">2</td>
<td style="width: 11%; height: 111px;">90,100</td>
<td style="width: 15.2857%; height: 111px;">0.06</td>
<td style="width: 63%; height: 111px;">The order value at this depth level = Order value at Sell Level 2 + Order value at Sell Level 1 = 90,100 × 0.06 + 1,800 = 7,206 USDT. The entire depth quantity at this level (0.06 BTC) will be used to calculate the depth-weighted buy price.</td>
</tr>
<tr style="height: 156px;">
<td style="width: 10.5714%; height: 156px;">3</td>
<td style="width: 11%; height: 156px;">90,200</td>
<td style="width: 15.2857%; height: 156px;">0.16</td>
<td style="width: 63%; height: 156px;">The order value at this depth level = Order value at Sell Level 3 + Order value at Sell Levels 1 and 2 = 90,200 × 0.16 + 7,206 = 21,638 USDT. The required depth-weighted amount at this level = 20,000 - 7,206 = 12,794 USDT. The required depth quantity (BTC) = 12,794 / 90,200 = 0.14184 BTC. The depth-weighted sell price = 20,000 / (0.02 + 0.06 + 0.14184) = 90,154.9 USDT.</td>
</tr>
</tbody>
</table>
</div>
<h2 id="h_01JRW0MBMYPMP0YPGG0ZTYFW74"> </h2>
<h2 id="h_01JRW0KTF773VG8SQWQ4V47401">Funding Fee Calculation</h2>
<p> </p>
<p>Funding Fee = Position Value × Funding Rate</p>
<h3 id="h_01JRW0MBMYX0GK5FBHPNN1JVC3"> </h3>
<h3 id="h_01JRW0MDEF2HWM3MX43VZP6W8R"><span style="color: #434343;">For USDT Margin Contracts:</span></h3>
<p>Position Value = Number of Contracts × Contract Face Value × Contract Multiplier × Mark Price.</p>
<p> </p>
<p>Example:<br>A user holds 10 BTCUSDT perpetual contracts in a long position. The current mark price is 60,000 USDT, and the contract face value is 0.01 BTC. The funding rate is 0.1%.</p>
<p>Position Value = 60,000 × 10 × 0.01 × 1 = 6,000 USDT<br>Funding Fee (charged by the platform) = 6,000 × 0.1% = 6 USDT</p>

Introduction to Perpetual Funding Fee Rules

<div>
<table style="width: 106%; height: 278px;">
<colgroup>
<col style="width: 79px;">
<col style="width: 70px;">
<col style="width: 85px;">
<col style="width: 92px;">
<col style="width: 91px;">
<col style="width: 91px;">
<col style="width: 92px;">
</colgroup>
<tbody>
<tr style="height: 67px;">
<td style="height: 67px; width: 13.2857%;"><span class="wysiwyg-color-blue"><strong>Product</strong></span></td>
<td style="height: 67px; width: 11.5714%;"><span class="wysiwyg-color-blue"><strong>Interest Rate</strong></span></td>
<td style="height: 67px; width: 14.1429%;"><span class="wysiwyg-color-blue"><strong>Funding Rate Upper Limit</strong></span></td>
<td style="height: 67px; width: 15.2857%;"><span class="wysiwyg-color-blue"><strong>Funding Rate Lower Limit</strong></span></td>
<td style="height: 67px; width: 15.1429%;"><span class="wysiwyg-color-blue"><strong>Premium Index Upper Limit</strong></span></td>
<td style="height: 67px; width: 15.1429%;"><span class="wysiwyg-color-blue"><strong>Premium Index Lower Limit</strong></span></td>
<td style="height: 67px; width: 15.2857%;"><span class="wysiwyg-color-blue"><strong>Depth-Weighted Amount</strong></span></td>
</tr>
<tr style="height: 22px;">
<td style="height: 22px; width: 13.2857%;">BTCUSDT</td>
<td style="height: 22px; width: 11.5714%;">0.0001</td>
<td style="height: 22px; width: 14.1429%;">0.00375</td>
<td style="height: 22px; width: 15.2857%;">-0.00375</td>
<td style="height: 22px; width: 15.1429%;">0.0005</td>
<td style="height: 22px; width: 15.1429%;">-0.0005</td>
<td style="height: 22px; width: 15.2857%;">20,000 USDT</td>
</tr>
<tr style="height: 22px;">
<td style="height: 22px; width: 13.2857%;">ETHUSDT</td>
<td style="height: 22px; width: 11.5714%;">0.0001</td>
<td style="height: 22px; width: 14.1429%;">0.0075</td>
<td style="height: 22px; width: 15.2857%;">-0.0075</td>
<td style="height: 22px; width: 15.1429%;">0.0005</td>
<td style="height: 22px; width: 15.1429%;">-0.0005</td>
<td style="height: 22px; width: 15.2857%;">20,000 USDT</td>
</tr>
<tr style="height: 22px;">
<td style="height: 22px; width: 13.2857%;">SOLUSDT</td>
<td style="height: 22px; width: 11.5714%;">0.0001</td>
<td style="height: 22px; width: 14.1429%;">0.015</td>
<td style="height: 22px; width: 15.2857%;">-0.015</td>
<td style="height: 22px; width: 15.1429%;">0.0005</td>
<td style="height: 22px; width: 15.1429%;">-0.0005</td>
<td style="height: 22px; width: 15.2857%;">20,000 USDT</td>
</tr>
<tr style="height: 22px;">
<td style="height: 22px; width: 13.2857%;">XRPUSDT</td>
<td style="height: 22px; width: 11.5714%;">0.0001</td>
<td style="height: 22px; width: 14.1429%;">0.0075</td>
<td style="height: 22px; width: 15.2857%;">-0.0075</td>
<td style="height: 22px; width: 15.1429%;">0.0005</td>
<td style="height: 22px; width: 15.1429%;">-0.0005</td>
<td style="height: 22px; width: 15.2857%;">20,000 USDT</td>
</tr>
<tr style="height: 22px;">
<td style="height: 22px; width: 13.2857%;">LTCUSDT</td>
<td style="height: 22px; width: 11.5714%;">0.0001</td>
<td style="height: 22px; width: 14.1429%;">0.0075</td>
<td style="height: 22px; width: 15.2857%;">-0.0075</td>
<td style="height: 22px; width: 15.1429%;">0.0005</td>
<td style="height: 22px; width: 15.1429%;">-0.0005</td>
<td style="height: 22px; width: 15.2857%;">20,000 USDT</td>
</tr>
<tr style="height: 22px;">
<td style="height: 22px; width: 13.2857%;">ADAUSDT</td>
<td style="height: 22px; width: 11.5714%;">0.0001</td>
<td style="height: 22px; width: 14.1429%;">0.0075</td>
<td style="height: 22px; width: 15.2857%;">-0.0075</td>
<td style="height: 22px; width: 15.1429%;">0.0005</td>
<td style="height: 22px; width: 15.1429%;">-0.0005</td>
<td style="height: 22px; width: 15.2857%;">20,000 USDT</td>
</tr>
</tbody>
</table>
</div>
<p> </p>
<p>BTCC will make appropriate adjustments to the parameters based on market conditions and update them in the above table, without further notice.</p>

Funding Rate Calculation Parameters

<p> </p>
<h2 id="h_01JRW1CFGY2H2AECJHFDFFMMY3">1. What is the spot index price?</h2>
<p> </p>
<p>The spot index price aims to measure the price of the underlying digital asset. BTCC's USDT margin contracts are priced in USDT index prices.</p>
<p><br>To ensure that the index price accurately reflects the fair spot price of each cryptocurrency, it is typically calculated as a weighted average of the spot prices obtained from mainstream exchanges. The averaging mechanism ensures that the index remains representative, effectively reducing the impact of price anomalies from any single exchange.<br><br></p>
<h2 id="h_01JRW1CFGYGNGX4MFQ1KTM06AQ">2. Calculating the Spot Index Price</h2>
<p> </p>
<p>A. For each index price, the corresponding price of the trading pair is retrieved in real-time from specified exchanges. The data retrieval frequency is subject to the API rate limits set by these exchanges.</p>
<p><br>B. Exchanges undergoing system maintenance or those that have not updated their latest price during a specified time period will not be included in the calculation of the latest price update. The update frequency of each index may vary.</p>
<p><br>C. If valid data is not available from all exchanges, the data retrieved from each exchange is generally weighted as follows:</p>
<ul>
<li>When data from 3 or more exchanges is available, it will be weighted according to preset weight values. If the price from any exchange deviates more than 2% from the median price of other exchanges, the price from that exchange will be adjusted to 98% or 102% of the median value, depending on whether it is too high or too low.<br><br>
</li>
<li>When data from 2 exchanges is available, they will be equally weighted.<br><br>
</li>
<li>When data from only 1 exchange is available, it will be taken as the spot index price.<br><br>
</li>
<li>BTCC may independently take various measures to control systemic risk. These measures include adjusting, adding, removing, and/or replacing the spot price components of exchanges to avoid significant deviations in these index components during periods of high market volatility, which may cause market disruption. As these measures may affect the price, position, and margin ratio of user orders, they may increase the risk of liquidation for users. Users should closely monitor the spot index price and margin levels and take precautionary measures, including reducing positions and supplementing margin to mitigate potential liquidation risks in their accounts. BTCC will not be liable for any losses or damages caused by risk control measures.<br><br>
</li>
</ul>

Index Calculation Rules

<p> </p>
<h2 id="h_01JRW1HSWVV2X0GHKQ1T7JFEPZ">1. What is Mark Price and Latest Price?</h2>
<ul>
<li>Mark Price: To improve the stability of the contract market and reduce unnecessary liquidations during abnormal market fluctuations, we use the mark price to calculate the unrealized profit and loss (PNL) of users.<br><br>
</li>
<li>Latest Price: The latest transaction price is determined by the most recent transaction price in the order book. For example, in the BTCUSDT perpetual contract, the latest transaction price is influenced by the buy and sell orders of the contract. Although these contracts are based on the value of BTC, their prices may not align with the spot price of BTC.<br><br>
</li>
</ul>
<h2 id="h_01JRW1HH5NFQFCPF74H4T3HHRB">2. Mark Price Algorithm</h2>
<p>Mark Price = Median(Price 1, Price 2, Contract Price)</p>
<ul>
<li>Price 1 = Price Index * (1 + Latest Funding Rate * (Time to Next Funding / Funding Rate Cycle))<br>Where:</li>
<li>The Funding Rate Cycle is the time interval, in hours, between each funding fee charged to users by BTCC.</li>
<li>Time to Next Funding is the remaining time, in hours, before the next funding fee is charged. For example, if the funding rate cycle is set to 8 hours, and the last funding fee was charged 2 hours ago, then the time to the next funding fee would be 6 hours.<br>Note: The funding fee is paid between long and short holders, with BTCC acting solely as a neutral trading intermediary.</li>
<li>Price 2 = Price Index + Moving Average (5-Minute Basis)<br><br>
</li>
</ul>
<p>The Moving Average (5-Minute Basis) is the average of 60 data points within a 5-minute period. These data points are calculated every 5 seconds by averaging the bid and ask prices and then subtracting the price index.<br>The calculation formula is as follows:<br>Moving Average (5-Minute Basis) = Sum[(Bid1_i + Ask1_i) / 2 - PI_i] / 60<br>Where:</p>
<ul>
<li>PI is the price index at the time of calculation.<br><br>
</li>
<li>Bid1_i, Ask1_i, and PI_i are based on 60 data points within 5 minutes, calculated every 5 seconds (at the 0, 5, 10, 15, 20, 25, 30, 35, 40, 45, 50, and 55-second marks of each minute).<br><br>
</li>
</ul>
<p>Mark Price Midpoint Calculation Method:</p>
<ul>
<li>If Price 1 &lt; Price 2 &lt; Contract Price, then Price 2 will be used as the mark price.</li>
</ul>
<p>Note: In extreme market conditions or when there is a price source deviation, the mark price may deviate from the spot price. In such cases, BTCC will take additional protective measures, i.e., the mark price = Price 2.</p>
<p> </p>
<p>During system upgrades or downtime, all trading activities will be paused. The system will continue to use the mark price formula to calculate the mark price, but the moving average (5-Minute Basis) in Price 2 will be set to 0 until the system returns to normal.<br><br></p>
<h2 id="h_01JRW1HH5NY40R0ADMXQN72EG8">3. Application of Mark Price</h2>
<ul>
<li>Unrealized PNL Calculation for Contracts:</li>
</ul>
<p>USDT Margin Contracts</p>
<p>Long Position PNL = Contract Value × |Contract Quantity| × Contract Multiplier × (Mark Price – Opening Price)</p>
<p>Short Position PNL = Contract Value × |Contract Quantity| × Contract Multiplier × (Opening Price – Mark Price)<br><br></p>
<p>By incorporating the mark price and latest transaction price into the PNL calculation, users can get a more comprehensive view of their position performance. The mark price helps reduce the impact of abnormal market fluctuations, while the latest transaction price provides users with a more accurate trading profit/loss information.</p>

Mark Price

<p> </p>
<h2 id="h_01JRW23C3BYR1FADGX9HYFMAM4">1. What is Auto-Deleveraging (ADL)?</h2>
<p><br>Auto-Deleveraging (ADL) is a risk management mechanism designed to protect BTCC's risk reserves. When BTCC's risk reserve (for specific products) can no longer absorb further losses arising from the liquidation of a losing position, ADL is triggered to limit the further loss to the risk reserve. Essentially, losing positions are matched with opposite profitable or high-leverage positions (referred to as "deleveraged positions"), and the two positions offset each other and are liquidated, eliminating the additional risk posed by the losing position to BTCC's risk reserve. It is important to note that due to ADL, profitable positions may be liquidated, limiting their future profit potential.<br><br></p>
<p>BTCC maintains multiple risk reserves. Each product line may have one or more applicable risk reserves ("applicable risk reserves"). More detailed information on the available risk reserves, including their current and historical values, is available via this link.</p>
<p> </p>
<p>The risk of ADL is related to the status and value of each applicable risk reserve (not the overall risk reserve value of BTCC), as described in this document.<br>ADL mechanism is applied only to Contract Pro business.</p>
<p> </p>
<h2 id="h_01JRW23C3CGMFJFSQ4GYJX9CJB">2. When is ADL Triggered?</h2>
<p>ADL is intended to be a last-resort risk management mechanism. Therefore, ADL is not frequently triggered. When losing positions can be safely absorbed by the market or, when appropriate, by the applicable risk reserve, BTCC will take steps to reduce the likelihood of ADL. ADL is triggered when such absorption leads to excessive risk.<br><br></p>
<p>ADL will be triggered in the following scenarios:</p>
<ol>
<li>When the balance of the applicable risk reserve is below 5,000 USDT.<br><br>
</li>
<li>When the applicable risk reserve is insufficient to cover the liquidation loss of a particular order.<br><br>
</li>
</ol>
<h2 id="h_01JRW23C3C9A5XCT31YAMZQDKS">3. What Happens After ADL is Triggered?</h2>
<p><br>Under normal circumstances, without ADL, losing positions are liquidated and closed by placing these positions into the order book, with the goal of allowing opposite position orders in the market to absorb the losing position. This results in realizing the losses of the losing position, and the opposite position orders in the market will be filled.<br><br></p>
<p>However, when ADL is triggered, the losing position is liquidated and closed by matching it with an opposite profitable or high-leverage position (the "deleveraged position", which may belong to other users, not the user responsible for the losing position), i.e., the position is deleveraged, without placing the losing position into the order book. Regardless of whether the opposite deleveraged position has unfilled orders, the deleveraged position will be forcibly liquidated at the market price at the time of matching. Once the losing position is matched with the opposite deleveraged position, the two positions offset each other and are closed. This eliminates the loss of the losing position and realizes the profit of the deleveraged position. If the user does not place new orders in the order book, the deleveraged position cannot gain any further profit. A key risk is that the new entry price for any new orders may differ from the deleveraged position.</p>
<p> </p>
<p>For isolated-position mode, the profit is calculated by dividing the position's rate of return by the position's margin rate (which considers the leverage used by the position). Losses are calculated by multiplying the position's rate of return (which will be negative) by the position's margin rate. For spot and contract modes, multi-asset modes, and composite modes, the formula uses the user's account margin rate instead of the position's margin rate. The higher the numerical value of the calculated result, the higher the position's ranking in ADL.</p>
<p> </p>
<h2 id="h_01JRW23C3C929R62FJD1BZ9ZMY">4. How Can I Predict When ADL Will Occur?</h2>
<p>ADL is most likely to occur in highly volatile markets. Therefore, it is inherently unpredictable. BTCC will take measures to limit the occurrence of ADL.<br><br></p>
<p>ADL is based on several factors related to the position, including the position's profit and loss levels and the leverage used. Based on these factors, each position is ranked. According to this ranking, the risk of ADL for each position on the BTCC platform is displayed using a warning signal light system (the following example shows the case where all five lights are lit):</p>
<p><img src="https://btccexchange.zendesk.com/hc/article_attachments/45779874925721" alt="12.png"></p>
<p>All 5 lights lit mean the position faces the highest risk of auto-deleveraging, while 1 light lit indicates lower risk. Despite this warning system, even positions with lower risk may face auto-deleveraging in a highly volatile market.</p>
<p> </p>
<p>Changes in the applicable risk reserve amount and updates on the website may have a time lag, and ADL may suddenly occur even without any previous major fluctuations.</p>
<p> </p>
<p>No warnings will be issued prior to the occurrence of ADL, except for the scenarios mentioned above. After ADL occurs, an email notification will be sent to the affected user, detailing the relevant closed positions.</p>
<p> </p>
<p><strong>Can I Prevent My Position from Being Affected by ADL?</strong><br>BTCC's risk management engine selects which positions will be subject to ADL based on multiple factors, including the position's profit and loss levels and the leverage used. While it is impossible to eliminate the possibility of ADL being triggered, reducing leverage will decrease the likelihood of your position being affected by ADL.<br><br></p>
<p><strong>Are There Transaction Fees for ADL?</strong><br>No transaction fees are charged for the deleveraged positions. The liquidation fee is charged for the losing positions.<br><br></p>

Auto-Deleveraging (ADL) System

<p> </p>
<h2 id="h_01JRW1VA1CG7RS6900AA4S5WK9">1. What is the Liquidation and Forced Close System?</h2>
<p><br>The forced liquidation system is the process through which the system handles a user's risky position when the maintenance margin rate of their position or account triggers the danger threshold. The specific process includes "Pre-Reduction Check (Canceling Orders)", "Reducing Position", and "Forced Liquidation". The forced liquidation process differs based on the mode; please refer to the full-position trading rules for details on each mode.<br><br></p>
<h2 id="h_01JRW1VA1C8DZS696VKRD23D4C">2. What is the Maintenance Margin Rate and Liquidation Fee?</h2>
<ul>
<li>
<strong>Maintenance Margin Rate</strong><br>For both cross-position and isolated-position contracts: the maintenance margin is calculated by multiplying the position value of each position by its corresponding maintenance margin rate, then summing them up. The maintenance margin rate is the minimum margin required for a user to maintain their current position.<br><br>
</li>
<li>
<strong>Liquidation Fee</strong><br>When the account's or position's maintenance margin rate ≤ 100%, the account triggers forced liquidation. The liquidation fee is the fee charged by the system when handling a liquidation order. It is calculated based on the user's current taker fee rate.</li>
</ul>
<h2 id="h_01JRYPWNZK4VGKP8QHABRNBT4E"> </h2>
<h2 id="h_01JRW1XEB7YFDPXMD1J9MXD9BH">3. Why is the Tiered Maintenance Margin Rate System Set? How is it Calculated?</h2>
<p> </p>
<p>To prevent large position liquidations from causing severe market liquidity shocks and large slippage losses, BTCC implements a tiered maintenance margin system. That means the larger the user's position, the higher the maintenance margin rate, and the lower the maximum leverage available to the user.</p>
<p> </p>
<p>Each position for every contract and direction is calculated separately in terms of "number of contracts," "position value," and "the maintenance margin ratio required for that position."</p>
<p><br>For details on each perpetual contract tier, see: <a href="https://www.btcc.com/en-US/futures/info?type=3&amp;symbols=BTCUSDT">Position Tier Details</a>.</p>
<h2 id="h_01JRYPWNZK2T3Z7RRCA96QP48N"> </h2>
<h2 id="h_01JRW1VA1CKADG1CFD195X2PT0">4. How to Calculate the Margin Rate for USDT-Margined Contracts</h2>
<ul>
<li>1. Cross-Position<br>Position Margin Rate = (Margin Balance + PnL) / Σ(Position Value * |Contracts| * Mark Price * (Maintenance Margin + Liquidation Fee Rate))<br>If there are multiple full-position positions across different asset types, the required maintenance margin and liquidation fees for each are summed up for the numerator.<br><br>
</li>
<li>2. Isolated-Position<br>Position Margin Rate = (Margin Balance + PnL) / (Position Value * |Contracts| * Mark Price * (Maintenance Margin + Liquidation Fee Rate))<br>Each position is independently calculated with no effect on others.<br><br>
</li>
</ul>
<p>For more details, see: <a href="https://www.btcc.com/en-US/support-center/detail/45771626861465">Contract Pro Margin Calculation</a>.</p>

Liquidation and Forced Close System

<p>To improve the execution speed of liquidation orders in perpetual contracts, BTCC has implemented the following processing methods without affecting market liquidity:</p>
<p> </p>
<h2 id="h_01JRW298GA2T5P35BC22HADTC6">I. Terminology Explanation</h2>
<ol>
<li>Liquidation Price: The price at which the mark price reaches a certain value, and the user's margin ratio becomes too low, triggering liquidation. The platform gains ownership of the remaining position.<br><br>
</li>
<li>Bankruptcy Price: The price at which the user's margin ratio losses reach 0.<br><br>
</li>
<li>Liquidation Order Price: The price at which the liquidation engine places an order in the market after taking over the user's liquidated position.<br><br>
</li>
<li>Liquidation Execution Price: The actual price at which the liquidation order is executed in the market after being placed.<br><br>
</li>
</ol>
<h2 id="h_01JRW298GA4AKXAX77TVRR384W">II. Liquidation Order Price Algorithm</h2>
<ol>
<li>Objective:<br>To consider various factors, including contract market depth, basis, and mark price, in order to place liquidation orders at more reasonable prices. This aims to reduce the market impact of liquidation orders placed at bankruptcy prices, accelerate execution speed, and mitigate system risks.<br><br>
</li>
<li>Detailed Logic:<br>When a user's position triggers liquidation and is taken over by the liquidation engine, the order will no longer be simply placed at the bankruptcy price. Instead, it will take into account the current contract market depth, basis, and mark price to calculate a price that can be executed as quickly as possible and maximize the liquidation surplus, which will then be placed in the market.<br><br>
</li>
</ol>
<h2 id="h_01JRW298GARK78X831DF3M8A6Q">III. Liquidation Order and Bankruptcy Loss Inquiry</h2>
<ol>
<li>During the price modification process, some liquidation orders may be executed at prices lower than the bankruptcy price (for long positions) or higher than the bankruptcy price (for short positions). However, since the platform takes over the position’s ownership, any bankruptcy losses or profits between the bankruptcy price and the execution price will initially be borne by the platform.<br><br>
</li>
<li>The bankruptcy loss caused by the modification of liquidation orders will be deducted from the risk reserves at settlement to compensate the platform.<br><br>
</li>
</ol>