PEOPLE and NFT Leveraged Trading, Savings, and Perpetual Contracts Now Available

Introduction

We are excited to announce the official launch of leveraged trading, savings products, and perpetual contracts for PEOPLE and NFT tokens. These new offerings are now accessible across all platforms, including web, mobile app, and API interfaces. This expansion provides traders with more flexibility and opportunities to engage with these popular digital assets.

Both PEOPLE and NFT will support USDT trading pairs for margin trading, allowing users to amplify their trading positions. The savings feature enables users to earn interest on their idle assets, while the perpetual contracts offer a way to speculate on future price movements without an expiry date.

This guide will walk you through the key details of these new products, including contract specifications, leverage options, and important operational notes.

Leveraged Trading for PEOPLE and NFT

Leveraged trading allows you to borrow funds to increase your trading position, potentially amplifying both gains and losses. For both PEOPLE and NFT, USDT-based margin trading is now supported.

The leverage tiers are structured to manage risk effectively. Each tier corresponds to a specific range of position sizes and initial margin requirements. These tiers help prevent forced liquidations by ensuring adequate collateralization.

To review the detailed leverage tier specifications, visit the platform after launch. The tier structure is designed to protect traders from extreme market volatility while providing sufficient flexibility.

The savings product, often referred to as "Earn" or "Savings," allows you to deposit your PEOPLE or NFT tokens to earn interest over time. The interest rates and allocation limits are determined by market demand and supply dynamics.

Available slots and interest rates can be checked directly on the platform once the service goes live. This feature is ideal for long-term holders looking to generate passive income from their digital assets.

Perpetual Contracts: PEOPLEUSDT and NFTUSDT

Perpetual contracts are a type of derivative product that allows traders to speculate on the price movement of an asset without owning it outright. Unlike traditional futures, perpetual contracts do not have an expiration date.

PEOPLEUSDT Perpetual Contract Specifications

NFTUSDT Perpetual Contract Specifications

Important Note on Funding Rates

Due to potential price instability immediately after launch, the funding rate cap will be temporarily set to 0.03% until December 2, 2021, 24:00 HKT. This measure ensures fairness and prevents excessive charges during the initial period.

After this time, the funding rate cap will return to the standard 0.75%. The first application of the adjusted rate will occur on December 3, 2021, at 16:00 HKT.

Other trading rules, such as price limits and order types, remain consistent with existing perpetual contracts for other cryptocurrencies.

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Risk Management and Best Practices

Trading leveraged products and derivatives involves significant risk. It is crucial to understand the mechanics of margin trading, liquidation prices, and funding rates before engaging.

Using lower leverage can help manage risk, especially in highly volatile markets. Always ensure you have adequate margin to avoid forced liquidations.

Diversifying your portfolio and not investing more than you can afford to lose are fundamental principles for sustainable trading.

Staying informed about market conditions and regularly monitoring open positions can help you react promptly to market movements.

Frequently Asked Questions

What is leveraged trading?
Leveraged trading allows you to borrow funds to open larger positions than your initial capital would allow. It amplifies both potential profits and losses, so risk management is essential.

How does the savings feature work?
The savings product lets you deposit specific cryptocurrencies to earn interest over time. Interest rates vary based on market demand and the token you deposit.

What are perpetual contracts?
Perpetual contracts are derivatives that track the price of an underlying asset without an expiry date. They use a funding rate mechanism to keep the contract price aligned with the spot price.

Why is there a temporary funding rate cap?
Newly listed contracts can experience high volatility and price discrepancies. The temporary cap prevents unreasonable funding charges during the initial stabilization period.

How is the funding rate calculated?
The funding rate is typically calculated based on the difference between the perpetual contract price and the spot index price. It is periodically applied to positions to maintain price convergence.

Can I trade these products on mobile?
Yes, all new products, including leveraged trading, savings, and perpetual contracts, are available on web, mobile app, and via API.

Conclusion

The introduction of leveraged trading, savings, and perpetual contracts for PEOPLE and NFT tokens expands the toolkit available to traders and investors. These products offer new ways to engage with the market, whether through amplified trading, earning passive income, or hedging positions.

As with any financial product, understanding the risks and mechanics is crucial for success. Start with small positions and gradually increase exposure as you become more comfortable with the features.

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