AOFEX Perpetual swap is a kind of digital currency derivatives. Users can make a profit from the rising/falling of digital currencies prices by going long or selling short based on their own judgment. Similar to a margin spot market, it through the margin to enlarge the funds to improve the utilization of funds. Perpetual swap has no delivery date. Users can always hold it.
- Riskrate and liquidation
Risk rate = Equity Balance / (Position Margin + Frozen Margin)
When risk rate less than or equal to 0%, forced liquidation will be triggered.
AOFEX makes the contract price and the reasonable bid price has no excessive deviation by using the fund rate mechanism. The platform does not charge any fees, and the fees depend on the total amount deducted from the account of the counterpart. The fund rate is positive, long positions will be paid to short positions, while the fund rate is negative, short positions will be paid to long positions. The fund fee is settled once every 8 hours, which is generated at 00:00, 08:00 and 16:00 Beijing time. Only when the position users held in the settlement time is not 0, users need to pay or collect funds.
- Settlement funds time(GMT+8)：0:00、8:00、16:00
Difference of Spot Transaction and Perpetual Swap
- Generally, spot transactions anchor the value of the tokens, making profits only after the token rises from the moment of purchase. The perpetual swapcan be operated in two directions. It can go long when the token is going up and go short when the token is falling. Reasonable use of lmargin can improve the utilization rate of funds;
- Perpetual swap normally settles 3 times a day with a period of 8 hours, during this period it can avoid repeated opening steps due to delivery;
- Perpetual swap will collect the funding from the long / short position user and return it to the short / long position user according to the positive / negative of the funding rate;
- Spot transaction is the buying and selling process of tokens. Perpetual swap has no physical delivery, no trading time limit and can open and close positions at any time, but the risk rate of the account needs to be monitored in real time to avoid forced liquidation.