The mechanics of our perpetual FX perps are as follows:



  • FX perps are exchange-traded through a central limit order book (CLOB). The funding rate mechanism assures that the trade price stays close to the index price (which is a composite FX spot price). 
    • Note: Funding occurs every 8 hours at 4:00 UT, 12:00 UTC, and 20:00 UTC. You will only pay or receive funding if you hold a position at one of these times. 
    • When the funding rate is positive, longs pay shorts. When it is negative, shorts pay longs. Examples are available here.
  • Traders can buy FX perps via limit and market orders. The liquidity of the orderbook determines the spread and slippage in a transparent way.
  • Our FX perps are margined and settled in either Tether (USDT ERC-20) or Bitcoin (XBT).
  • Our FX perps allow users to trade with up to 50x leverage, meaning users do not need to post 100% of their collateral as margin.
  • Users who trade our FX contracts can post margin in XBT or USDT - and earn or lose in XBT or USDT - as the exchange rate of a specific foreign currency pair changes. This quanto risk premium may be one of the factors that results in an FX swap trading at a premium/discount to an FX pair’s spot price.