The official launch of leverage trading, savings products, and perpetual contracts for Filecoin (FIL), Aave (AAVE), and Civic (CVC) marks a significant expansion of trading options for digital asset enthusiasts. This update provides traders and investors with more tools to implement sophisticated strategies and manage their portfolios effectively.
This guide details the key features of these new offerings, including their specifications, operational rules, and how you can start using them.
Understanding Leverage Trading and Savings
Leverage trading allows you to borrow funds to amplify your trading position, potentially increasing both gains and losses. The newly supported savings product enables you to earn interest on idle digital assets.
- Trading Pairs: FIL, AAVE, and CVC are now available for leverage trading against both USDT and BTC. This provides flexibility depending on your preferred quote currency and trading strategy.
- Leverage Tiers: The specific margin levels and borrowing limits are structured in tiers. These tiers are designed to manage risk by adjusting the available leverage based on the size of your position.
- Savings Allocation: The savings product offers a way to put your holdings to work. The amount of each digital asset you can allocate to earn interest is subject to dynamic limits based on platform liquidity.
For the most current and detailed information on margin levels and savings caps, it is essential to consult the official platform pages after the launch.
A Deep Dive into Perpetual Contracts
Perpetual contracts are a popular derivative product that allows for speculation on the future price of an asset without an expiration date. Here are the detailed specifications for the new contracts.
AAVEUSDT Perpetual Contract Specifications
| Contract Element | Details |
|---|---|
| Underlying Asset | AAVE/USDT Index |
| Settlement Coin | USDT |
| Face Value | 0.1 AAVE |
| Price Quotation | Price of 1 AAVE in USDT |
| Minimum Price Movement | 0.01 |
| Leverage | 0.01x - 75x |
| Funding Rate | Clamp(MA((Contract Mid Price - Spot Index Price) / Spot Index Price - Interest), -0.75%, 0.75%); Interest = 0 |
| Trading Hours | 24/7 |
| Settlement Time | Daily at 16:00 (HKT) |
CVCUSDT Perpetual Contract Specifications
| Contract Element | Details |
|---|---|
| Underlying Asset | CVC/USDT Index |
| Settlement Coin | USDT |
| Face Value | 100 CVC |
| Price Quotation | Price of 1 CVC in USDT |
| Minimum Price Movement | 0.0001 |
| Leverage | 0.01x - 75x |
| Funding Rate | Clamp(MA((Contract Mid Price - Spot Index Price) / Spot Index Price - Interest), -0.75%, 0.75%); Interest = 0 |
| Trading Hours | 24/7 |
| Settlement Time | Daily at 16:00 (HKT) |
FILUSD Perpetual Contract Specifications
| Contract Element | Details |
|---|---|
| Underlying Asset | FIL/USD Index |
| Settlement Coin | FIL |
| Face Value | 10 USD |
| Price Quotation | Price of 1 FIL in USD |
| Minimum Price Movement | 0.01 |
| Leverage | 0.01x - 75x |
| Funding Rate | Clamp(MA((Contract Mid Price - Spot Index Price) / Spot Index Price - Interest), -0.75%, 0.75%); Interest = 0 |
| Trading Hours | 24/7 |
| Settlement Time | Daily at 16:00 (HKT) |
Important Initial Funding Rate Note: To ensure fairness during the initial period of price discovery after launch, a temporary cap of 0.03% was placed on the predicted funding rate calculation until a specified time. After this initial period, the cap returned to the standard 0.75%.
Other standard trading rules for these perpetual contracts, such as price limits and order types, align with existing contracts on the platform.
Limited-Time Zero Fee Trading
To celebrate the launch, a special promotional fee structure was implemented for a limited period. For one month, both maker and taker fees for the AAVEUSDT, CVCUSDT, and FILUSD perpetual contracts were set to 0.00%. It's important to note that trading volume from this fee-free zone did not contribute to a user's volume-based tier classification. For the latest fee schedule, always check the official source.
Frequently Asked Questions
What is leverage trading in crypto?
Leverage trading involves borrowing capital to increase the size of a position beyond what would be possible with one's own balance alone. It magnifies both potential profits and potential losses, making effective risk management crucial.
How does the funding rate work in perpetual contracts?
The funding rate is a periodic payment exchanged between long and short traders to tether the contract's price to the underlying spot price. A positive rate means longs pay shorts, while a negative rate means shorts pay longs. The rate is calculated based on the difference between the perpetual contract price and the spot index price.
What are the risks of using high leverage?
While high leverage can amplify gains, it also exponentially increases risk. A very small adverse price movement can lead to significant losses and potentially trigger the liquidation of your position if maintenance margin requirements are not met. It is vital to use leverage cautiously.
What is the difference between USDT-margined and coin-margined contracts?
A USDT-margined contract, like AAVEUSDT, uses Tether (USDT) as the collateral for both margin and profit/loss calculation. A coin-margined contract, like FILUSD, uses the base asset (e.g., FIL) as collateral. This affects your exposure to the quote currency's volatility.
Can I earn interest on FIL, AAVE, or CVC?
Yes, through the savings product, you can allocate your idle FIL, AAVE, or CVC holdings to earn interest. The available capacity fluctuates based on platform supply and demand.
Where can I learn more about advanced trading strategies?
Many platforms offer educational resources on derivatives trading. To deepen your understanding of perpetual contracts and leverage, you can explore more strategies and advanced methods through comprehensive learning centers.
This expansion provides traders with more avenues to engage with these dynamic digital assets. As always, ensure you fully understand the mechanics and risks of leverage and derivatives before participating.