Can KuCoin contracts be withdrawn?

KuCoin offers various contract trading options, but the withdrawal process differs depending on the contract type: futures contracts cannot be withdrawn, while fully funded perpetual contracts can be transferred to spot trading accounts.

Nov 08, 2024 at 09:24 pm

Can KuCoin Contracts Be Withdrawn?

KuCoin, one of the leading cryptocurrency exchanges, offers a comprehensive suite of trading products, including spot trading, margin trading, and futures trading. However, the question of whether contracts traded on KuCoin can be withdrawn has been a subject of confusion for many users. This article will delve into this topic and provide a detailed explanation of the withdrawal process for different types of contracts available on KuCoin.

1. Understanding Contract Trading on KuCoin

Contract trading, also known as derivatives trading, involves buying and selling contracts that derive their value from an underlying asset, such as a cryptocurrency. Unlike spot trading, where you buy or sell the underlying asset directly, contract trading allows you to speculate on the price movements of an asset without actually owning it.

On KuCoin, there are two main types of contracts: futures contracts and perpetual contracts. Futures contracts have a fixed expiration date, while perpetual contracts have no expiration and can be held indefinitely. Both types of contracts are traded with leverage, which amplifies your potential profits but also increases your risk.

2. Withdrawing Futures Contracts on KuCoin

Futures contracts on KuCoin cannot be withdrawn in the traditional sense. This is because futures contracts are not actual assets but rather agreements to buy or sell an asset at a specified price on a future date. Once a futures contract expires, it is automatically settled in USDT, the stablecoin used as the settlement currency on KuCoin.

3. Withdrawing Perpetual Contracts on KuCoin

Perpetual contracts on KuCoin can be withdrawn, but only in certain circumstances. If the perpetual contract is fully funded, meaning it has a positive funding rate, it can be withdrawn to your spot trading account. However, if the perpetual contract is underfunded, meaning it has a negative funding rate, it cannot be withdrawn and must be closed or liquidated.

To withdraw a fully funded perpetual contract, follow these steps:

• Log in to your KuCoin account and navigate to the "Futures" tab.
• Select the perpetual contract you want to withdraw.
• Click on the "Transfer" button.
• Enter the amount of the contract you want to withdraw.
• Confirm the withdrawal by entering your trading password.

The withdrawn perpetual contract will be credited to your spot trading account, where you can sell it for USDT or other cryptocurrencies.

4. Closing or Liquidating Underfunded Perpetual Contracts

If a perpetual contract is underfunded, it cannot be withdrawn and must be closed or liquidated. Closing a contract involves selling it back to the market at the current price, while liquidation occurs when the contract is forcefully closed by the exchange due to insufficient margin.

To close an underfunded perpetual contract, follow these steps:

• Log in to your KuCoin account and navigate to the "Futures" tab.
• Select the perpetual contract you want to close.
• Click on the "Close" button.
• Confirm the closing by entering your trading password.

To liquidate an underfunded perpetual contract, follow these steps:

• Log in to your KuCoin account and navigate to the "Futures" tab.
• Select the perpetual contract that is being liquidated.
• The liquidation process will occur automatically when the margin requirement is not met.

5. Precautions for Withdrawing Perpetual Contracts

When withdrawing perpetual contracts, it is important to note the following precautions:

• Only fully funded perpetual contracts can be withdrawn.
• Withdrawing a perpetual contract will close the position and incur any unrealized profits or losses.
• The withdrawal process may take some time to complete.
• Be aware of the trading fees associated with withdrawing perpetual contracts.