The expansion of a trading platform's offerings is always significant news for the digital asset community. This update introduces new financial instruments for several popular tokens, providing traders with more avenues for potential growth and portfolio management.
This guide breaks down the new trading features, including leveraged trading, savings products, and perpetual contracts.
Overview of New Trading Features
The platform has officially integrated support for ENS, BABYDOGE, and KISHU across multiple product lines. This integration is designed to offer users enhanced flexibility and more sophisticated strategies when interacting with these digital assets.
The services went live simultaneously on the website, mobile application, and API interfaces.
Leveraged Trading Pairs
Leverage allows traders to borrow funds to amplify their trading position, potentially increasing both gains and losses. The newly supported margin trading pairs are:
- ENS/USDT
- BABYDOGE/USDT
- KISHU/USDT
It is crucial to understand the specific risk parameters for each pair. The applicable leverage tiers and corresponding margin requirements can vary by asset. Users are advised to consult the platform's official leverage tier guide within their account dashboard to see the precise levels and avoid liquidation risks.
“Savings” Product (Yu Bao)
The “Yu Bao” or savings product allows users to earn passive income on their idle digital assets by lending them to the platform. The available lending pools and their corresponding interest rates for ENS, BABYDOGE, and KISHU are determined by market supply and demand.
The specific deposit limits and annual percentage yields (APY) are dynamic. For the most current capacity and rates for these new assets, always refer to the official savings rules page before depositing funds.
ENS/USDT Perpetual Contracts
A significant addition is the ENS/USDT perpetual contract. These are derivative products that allow speculation on the future price of ENS without an expiration date, settled in USDT.
Key Contract Specifications
Understanding the contract mechanics is essential for any trader.
- Underlying Asset: ENS/USDT index.
- Settlement Currency: USDT.
- Contract Face Value: 0.1 ENS.
- Minimum Price Movement (Tick Size): 0.001 USDT.
- Leverage: Ranges from 0.01x to 75x.
- Trading Hours: 24/7.
Understanding the Funding Rate
Perpetual contracts use a funding rate mechanism to keep their price anchored to the spot market index. The rate is periodically exchanged between long and short position holders.
The formula is: Clamp(MA((Contract Mid Price - Spot Index Price) / Spot Index Price - Interest), -0.75%, 0.75%), where Interest is 0.
Important Initial Note: To ensure stability at launch, a temporary funding rate cap was in effect. For the first trading period until a specified time, the maximum rate was capped at 0.03%. After that initial period, the standard cap of 0.75% was applied. This was a one-time measure to ensure a fair launch.
All other standard rules for USDT-margined perpetual contracts, such as order types (limit, market, etc.), apply to the ENS contract. For a comprehensive overview of how these contracts function, you can explore more strategies on dedicated educational resources.
Frequently Asked Questions
What are the biggest risks with leveraged trading?
The primary risk is liquidation. If the market moves against your leveraged position by a certain percentage, your collateral will be automatically sold to cover the borrowed funds, resulting in a total loss of your initial margin. Always use risk management tools like stop-loss orders.
How does the "Yu Bao" savings product generate yield?
The platform pools user-deposited assets and lends them to margin traders who pay interest on their borrowed funds. This interest is then distributed to savers, minus a service fee. Yield fluctuates based on borrowing demand.
Can I trade these new features on my mobile phone?
Yes, the new leveraged pairs, savings products, and the ENS perpetual contract are fully accessible and functional on both the official mobile app and the website for seamless trading on the go.
What is the purpose of the funding rate in perpetual contracts?
The funding rate is a mechanism designed to tether the contract's price to the underlying spot price. When the contract trades at a premium, long positions pay shorts. When it trades at a discount, shorts pay longs. This prevents the derivative price from drifting too far from the asset's real-time value.
Is there a difference between trading a spot pair and a perpetual contract?
Yes, the key difference is leverage and expiration. Spot trading involves directly buying and selling the asset with your own capital. Perpetual contracts are leveraged derivatives with no expiry, allowing for more complex strategies like short-selling but carrying significantly higher risk.
Where can I find the most current trading rules for these assets?
The platform's official help center and documentation pages contain the most detailed and up-to-date information on all product rules, including leverage tiers, fee schedules, and API documentation. Always refer to these resources.
Trading digital assets, especially with leverage and derivatives, involves high risk and is not suitable for all investors. It is essential to conduct thorough research, understand the mechanics of each product, and only invest what you are willing to lose. The market can be volatile, and proper risk management is the key to sustainable participation. To stay informed on market movements and platform updates, view real-time tools that can aid your analysis.