Fees and Liquidation

Fees for Perpetual Contract（2019.4.2–2019.5.31）

Funding Rate

Funding is exchanged between longs and shorts over 8-hour intervals for CoinBene perpetual contracts. In your Funding Rate history, a positive amount means that you pay funding for that interval, while a negative amount means that you receive funding. CoinBene does not charge any fees on funding paid or received. The time to receive the funding is UTC 4:00, UTC 12:00 and UTC 20:00. If there is no position held at the time of receiving the funding, no funding shall be paid or received.

Liquidation

CoinBene perpetual contracts provide high multipliers of leverage. In order to keep a position from being liquidated, traders must hold margin at a certain proportion of the position value, which is also known as the maintenance margin. The minimum maintenance margin is 0.5% of the higher position. If your position does not meet the margin requirement, it will be liquidated and you will loss the margin. You can view the liquidation price of each position under “Holding Position” and adjust the liquidation price by transferring BTC to the contract account.

Minimizing Liquidations As Much As Possible

· CoinBene employs the fair mark price to avoid liquidations arising from the lack of liquidity or the market manipulation.

· If liquidation is triggered, CoinBene will cancel all unexecuted orders to release margin and keep positions.

Liquidation Process

When the margin of the contract position reaches 0.5% of the higher position, all positions under the contract will be liquidated.

The liquidation process is as follows:

1. CoinBene cancels all unexecuted orders to this contract.

2. If the maintenance margin requirement is not met at this time, the position is taken over by the liquidation engine at the bankruptcy price.

System Profit and Loss

· If CoinBene is able to liquidate at a price better than the bankruptcy price, the additional funds will be added to the insurance fund.

· If CoinBene is unable to liquidate at the bankruptcy price, CoinBene will employ the insurance fund and attempt to close it. If this still does not close the liquidated order, this will then lead to an Auto-Deleveraging event.

Examples of liquidation

· A trader buys a contract at the price of 100 USDT, the liquidation price is 99.5 USDT and the bankruptcy price is 99 USDT. If the liquidation occurs, this position will be taken over by the liquidation engine at price of 99 USDT and liquidated in the market. If the liquidated order is executed at 99.25 USDT, the insurance fund is 0.25 USDT.

· Another trader buys a contract at 100 USDT, the liquidation price is 99.5 USDT and the bankruptcy price is 99 USDT. In the event of a liquidation, the liquidation engine will execute the liquidated order at the lowest price not less than 98.75 USDT, that is: the bankruptcy price 99 USDT minus 0.25 USDT in the insurance fund. The liquidation engine will use the balance of the insurance fund to submit the liquidated order at a more radical price. If the liquidation order is executed at 98.75 USDT, then the insurance fund will become 0 USDT.

About CoinBene

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