What is Perpetual Contract Insurance? What does perpetual contract mean, can you make it simpler?

"Contracts + Insurance" is a contract trading model pioneered by BMEx, which aims to reduce trading risks for investors participating in contracts. In the BMEX contract insurance model, users can choose to purchase any amount of insurance when trading futures, and in the event of a trading loss, the platform will activate a double compensation mechanism.

The payout mechanism of BMEX contract insurance is as follows:

If the loss amount is "the insured amount, 2 times the loss amount will be paid;

If the loss amount is "the insured amount", 2 times the insured amount will be paid;

Contract trading is an important part of financial derivatives, and compared with the traditional financial industry, the leverage ratio of digital currency contracts is higher, and the leverage ratio of some trading platforms is even 200%, which increases the income while deepening the degree of loss.

BMEX's "contract + insurance" model can solve this problem well, and users can purchase the corresponding insurance ratio according to the proportion of individual contract transactions, so as to minimize the risk. In particular, more and more investors are pouring into the digital trading market, and the lack of experience will undoubtedly increase the probability of loss, which shows that "contract + insurance" is the general trend.

Perpetual contract is a new type of contract, which has evolved from the traditional ** contract. However, compared with ** contracts, perpetual contracts have no expiration or settlement date, and it is more like a margin spot market. As a result, it trades closer to the underlying reference index.

Because the perpetual contract does not have a delivery date, it is more suitable for long-term holdings. That is to say, as long as you open ** as long as there is no liquidation and forced liquidation, you will never passively close the position. As long as your pending order is not voluntarily withdrawn, it will remain in place forever until the trade is concluded.

However, the absence of a delivery date means that there is no mandatory constraint on the perpetual contract, which will become a gaming tool. In order to avoid this situation, perpetual contracts have the following provisions:

1) At a certain time, when **** is greater than and significantly deviates from the spot**, the long side needs to pay the short side.

2) At a certain time, when **** is less than and significantly deviates from the spot, the short side needs to pay the long side.

3) The greater the degree of deviation, the higher the rate of payment.

Through the setting of this fee mechanism, the perpetual contract can be anchored to the spot, which is likely to limit the malicious manipulation of the contract. However, this mechanism is not activated throughout the entire trading time. Generally, it is chosen to set several points in the day and perform the test at the time point.

If there is a gap deviation that is too large and the position is still open, the mechanism will be activated.

This term is generally used for 1-year medical supplementary insurance, that is, after the insured is sick, the insurance company is still willing to continue to let the insured person take out insurance, and can continue to apply for insurance every year. As long as this product is still available, it can be renewed.

Digital currency. The competition between the exchanges is very fierce, and the exchanges have set their sights on the ** market.

Perpetual contracts are the most popular among them, and perpetual contracts are an innovative financial derivative.

This contract is similar to the traditional ** contract, the biggest difference is that the perpetual contract does not have an expiration date or settlement date, and users can hold the slot indefinitely. How is the fee for a perpetual contract calculated? Here's what I think.

First of all, the perpetual contract calculation method is calculated according to the user's position volume and holding time, the more coins you buy, the longer you hold the position, the higher the fee. Secondly, the funding rate is closely related to the user's membership level in the current exchange, and different platforms have different charging methods, so there is no way to calculate it uniformly. Finally, if you are a novice investor, you can go to the major digital currency exchanges to learn about the latest ** mark price, the difference between the concept of unrealized profit and loss and realized profit and loss.

1. Perpetual contracts use the funding mechanism to anchor the perpetual contract market to spot.

The perpetual contract calculation method is calculated according to the user's position volume and holding time, the more coins you buy, the longer you hold the position, the higher the fee.

2: In addition to the transaction fee, the perpetual contract also has a funding rate, which is related to the level of the member store.

The funding rate is closely related to the user's membership level in the current exchange, and different platforms have different charging methods, so there is no way to calculate it uniformly. Slippery.

If you are a novice investor, you can go to the major digital currency exchanges to learn about the latest ** mark price, the difference between the concept of unrealized profit and loss and realized profit and loss.

The fees included are mainly transaction fees, and the fees added up to the funding rate fees and the two are the fees of the perpetual contract.

This will be calculated according to the handling fee, the conversion rate of funds, the opening and closing of positions, the pending order and the eating pill and other aspects of the situation, and the inner cavity key capacity involving Gao He and is also more complicated.

This fee is calculated by subtracting the ** used to open the position from the ** of the closed position, and the profit data can be obtained.

Perpetual contracts are simply leveraged, have no delivery period, and can hold positions permanently. The perpetual contract is an upgraded continuation of the traditional ** contract. Digital currency trading is only available, relatively small risk, flexible control.

Internationally, there are ioaex who specialize in this, and there are Chinese options available. There is OKEx in China, but it is not very stable during peak periods.

Legal analysis: perpetual contracts can be held for a long time. Perpetual contract is an innovative financial derivative product, which is similar to the traditional ** contract, the biggest difference is:

Perpetual contracts have no expiration date or settlement date, and users can hold them indefinitely**. In addition, the perpetual contract introduces the concept of widening the spot index, and through the corresponding mechanism, the perpetual contract returns to the spot index, so unlike the traditional one, the perpetual contract will not deviate too much from the spot most of the time.

Legal basis: Article 184 of the Civil Code of the People's Republic of China The two parties to the contract should be cautious and agree that the contract may be changed. If the main contract stipulates that the change shall be in written form, the supplementary agreement shall be concluded in writing in accordance with the agreement of the main contract of the socks, and if no clear agreement on the form of change is made, the oral change shall also be valid.

The premise is that you have a good relationship. will be a perpetual contract. It is estimated that this kind of thing happens to the great benefit of each other, and it can benefit for a long time.

Always keep the contractual relationship.

Perpetual contracts are simply leveraged, no delivery period, and can hold positions permanently.