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Specifications of USDT-Margined Futures Contracts
Specifications of USDT-Margined Futures Contracts

USDT-Margined Perpetual contracts on CoinUnited.io are linear derivatives products that are quoted and settled in USDT.

Updated over a week ago

The key benefit of USDT-settled contracts is that you can easily calculate your returns in fiat. This makes USDT-margined contracts more intuitive. For example, when you make 800 USDT in profit, you can easily estimate that the profit is worth approximately $800 - as the value of 1 USDT is pegged closely to 1 USD.

USDT-margined contracts offer the following characteristics:

Settlement in USDT: Contracts are denominated and settled in USDT.

Expiration: Perpetual

Clear pricing rules: Each USDT-margined Perpetual contract specifies the base asset's quantity delivered for a single contract, also known as "Contract Unit". For example, BTC/USDT, ETH/USDT, and DOGE/USDT Perpetual contracts represent one unit of its underlying asset, similar to spot markets.

Funding fee: It is a mechanism created to help perpetual prices converge to the underlying assets’ price. When the market is liquid, trading perpetual contracts is similar to trading in spot markets.

USDT-M Perpetual contracts carry a funding fee. Funding payments are transferred between traders and are charged every hour. Funding Fees are calculated using this formula: Funding Fees = Notional Value * Hourly Funding Rate. You can view the Predicted Funding Rate and countdown time to the next funding on the CoinUnited Futures trading interface, above the candlestick chart.

Mark Price: Mark Price is a mechanism used in USDT-margined contracts trading, to ensure fair and accurate pricing and unrealised PnL evaluation. It is important to ensure accurate unrealised PnL calculation to avoid unnecessary liquidations because of short-term volatility. The true value of the perpetual contract as well as the average price of major markets constitutes the key component of Mark Price. You can view the Mark Price on the CoinUnited Perpetual trading interface, above the candlestick chart.


Minimum order notional limit rule for USDT-M Perpetual contracts:

The minimum notional value of each order is greater than or equal to 10 USDT. If the order notional value is less than the set threshold (10 USDT), the order will be rejected.

For example, if the user opens an order of 0.001 ETH > 10 USDT notional value, the order can be successfully placed; if the user opens an order 1 DOGE < 10 USDT notional value, the order will be rejected.

Note:

CoinUnited.io will adjust the minimum order threshold from time to time without prior announcement, users can check via Trading Rules for details.

For complete USDⓈ-M Perpetual contract specifications, please refer to: Trading Rules


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