How ProBit Global contracts are delivered

ProBit Global's perpetual contracts involve complex delivery with steps like contract expiration, Mark Price calculation, funding rate adjustment, and settlement in USDT.

Nov 29, 2024 at 09:59 pm

How ProBit Global Contracts Are Delivered

ProBit Global offers perpetual contracts for trading cryptocurrencies with leverage. These contracts allow traders to speculate on the price movements of cryptocurrencies without owning the underlying assets directly, and they are settled in USD Tether (USDT). Traders should be aware that perpetual contracts involve a high level of risk, as the potential gains and losses are amplified by the use of leverage.

The delivery of ProBit Global contracts is a complex process that involves multiple steps. Here is a detailed overview of how ProBit Global contracts are delivered:

Step 1: Contract Expiration

Perpetual contracts do not have a set expiration date. However, they do have a daily settlement cycle. At the end of each settlement cycle, which occurs at 00:00 UTC, all open contracts are settled based on the Mark Price.

Step 2: Mark Price Calculation

The Mark Price is the reference price for the settlement of perpetual contracts. It is calculated as the weighted average of the prices from major spot exchanges. By using the Mark Price, ProBit Global ensures that the settlement price is fair and reflects the actual market conditions.

Step 3: Funding Rate Adjustment

The funding rate is a mechanism used to ensure that the perpetual contract price remains anchored to the Mark Price. If the perpetual contract price is trading at a premium to the Mark Price, then traders who are long the contract will pay a funding fee to traders who are short the contract. Conversely, if the perpetual contract price is trading at a discount to the Mark Price, then traders who are short the contract will pay funding fees to traders who are long the contract.

Step 4: Settlement

At the end of the settlement cycle, all open contracts are settled at the Mark Price. If a trader has a net positive position (i.e., they are long more contracts than they are short), they will receive USDT equal to the difference between the Mark Price and the price at which they opened their position. Conversely, if a trader has a net negative position (i.e., they are short more contracts than they are long), they will pay USDT equal to the difference between the Mark Price and the price at which they opened their position.

Additional Information

• ProBit Global contracts are quoted in USDT, and all profits and losses are settled in USDT.
• The minimum leverage that can be used for perpetual contracts is 1x, and the maximum leverage is 100x.
• Traders can trade perpetual contracts on a variety of cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).

Please note that this is a general overview of how ProBit Global contracts are delivered. The specific details of the delivery process may vary depending on the specific contract being traded, such as cryptocurrency and leverage.

Disclaimer

This article is for informational purposes only and should not be considered investment advice. Trading perpetual contracts involves a high level of risk, and traders should only trade with funds that they can afford to lose.