OKEx perpetual swap contract is a virtual derivative product that is settled in digital tokens USDT. Each contract has a face value of fixed amount of digital token(e.g BTCUSDT contract has a face value of 0.0001 BTC). Traders can long a position to profit from the increase of a digital asset's price, or short a position to profit from the decline of a digital asset's price.
Delivery - Perpetual Swap has no delivery date and never expires;
Funding - as there is no delivery date, a funding mechanism is used to ensure that the Perpetual Swap price is anchored to the spot market;
Mark Price - Mark price is used to calculate users' unrealized profits and losses (UPL) in order to reduce unnecessary liquidation in volatile market conditions.
Daily Settlement – a daily settlement process (at UTC 08:00) moves Unrealized PnL into Realized PnL, increasing flexibility of capital utilization.
Tiered Maintenance Margin Ratio System - Maintenance margin ratio (MMR) is the lowest margin ratio required for holding a user's current positions. When the Margin Ratio drops below the MMR plus the liquidation fee rate, liquidation (of full or partial position) occurs. The larger the position a user holds, the higher the MMR, and the maximal leverage available will be lowered effectively.
Partial Liquidation - for users with larger positions and tiered as level 3 or above, when the margin ratio is lower than the MMR of the tier plus the liquidation fee rate, but higher than the MMR of the first tier plus the liquidation fee rate, our system will attempt to bring the user down to a lower tier by partially liquidating the user's positions, until the MMR requirement of the tier is satisfied. Under Fixed Margin Mode, during partial liquidation, the position will be frozen and no related operations can be executed; under Cross Margin Mode, during partial liquidation, the whole perpetual swap account will be frozen and no related operations can be executed.
Trading hours for all USDT-margined perpetual swaps are 7*24h, and they are all settled at 8:00 (UTC) and the settlement currency is USDT. Price quotation is 1 unit of corresponding underlying.