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Contract Specification

Perpetual Contract Overview#

A Perpetual contract is a derivative similar to Futures. However, perpetuals differ from Futures in that they:

  • Do not expire (Unlike options and vanilla futures).
  • Do not have a settlement date (This means a trader can hold a position open forever if they have adequate margin).
  • Mimic a margin-based spot market with the trading price being 'pegged' to the underlying price using a funding rate mechanism.

Inverse and Quanto perpetual contracts#

Currently, there are two perpetual contract types on Kollider:

Inverse

BTC (Base Currency) | USD (Quote Currency)

An inverse contract allows traders to get exposure to crypto/fiat pairs such as BTC/USD without the need of making fiat deposits. With inverse contracts, all margin, profit or losses are calculated and settled using the base currency (underlying asset e.g. BTC).

Quanto

A Quanto contract is a derivative in which the base currency is denominated in one currency, but the contract itself is settled in another currency.

For example, on Kollider we allow traders to use Bitcoin to get price exposure to assets where Bitcoin is not present e.g. ETHUSD

ContractIndexMultiplier
BTCUSD.BTCUSD1 USD
ETHUSD.ETHUSD1 Satoshi

BTCUSD-PERP#

Trade BTCUSD

BTC (Base Currency) | USD (Quote Currency)
NameDetail
TypeInverse (settled in BTC, quoted in USD)
Price per contractcontract price = 1/trade_price (1 contract is always worth 1 USD)
Value of position or ordervalue = price x quantity or value = 1/trade_price x number_of_contracts
Expiry datePerpetual
Inital margin requirementInitial margin requirement = value of trade / leverage E.g. If 1 BTC = \$60,000 and a trader wishes to buy a position of 1 BTC worth \$60,000, with x100(1:100) leverage, then the initial margin requirement = $60,000/100 = $600(1,000,000 sats) + fee (see fees)
Maintance margin0.5% + entry taker fee + exit taker fee
Funding interval1 hour
Max leverage100x
Underlying Index.BTCUSD

ETHUSD-PERP#

Trade ETHUSD

ETHUSD is a quanto perpetual. Meaning its settled in a different currency than the base currency.

ETH (Base Currency) | USD (Quote Currency)
NameDetail
TypeQuanto (settled in BTC, quoted in USD)
Price per contractcontract price = trade_price x 1 Satoshi (e.g if trade_price = $1,600, one contract = 1,600 sats)
Value of position or ordervalue = price x quantity or value = trade_price x 1 Satoshi x number_of_contracts
Expiry datePerpetual
Inital margin requirementInitial margin requirement = value of trade / leverage E.g. If 1 ETH = \$2,000 and a trader wishes to buy a position of 1 ETH worth \$2,000, with x50(1:50) leverage, then the initial margin requirement = \$2,000/50 = $40 + fee (see fees)
Maintance margin1% + entry taker fee + exit taker fee
Funding interval1 hour
Max leverage50x
Underlying Index.ETHUSD