Unlike USDT contracts that use USDT as margin, currency-margined perpetual contracts use the underlying currency as the collateral asset. Users need to hold the corresponding underlying currency to participate in the transaction of the contract of this variety, such as BTC/USD currency-standardized perpetual contracts. In the contract, users need to transfer BTC as collateral assets. Due to the difference in the currency used as the underlying asset, the risk of devaluation of the underlying asset for the two contracts is also different when the price falls. Assume that when the BTC/USD currency-margined perpetual price falls, the higher the required collateral assets for user positions, the more BTC required to hold the collateralized assets; however, the USDT-based perpetual contract requires USDT because the required collateral assets are The fall in BTC price will not affect the value of USDT collateral assets.
USDT-margined perpetual contracts are priced in USDT; currency-margined perpetual contracts are priced in USD. Therefore, the index price between the two will also be different. For example, the index price of BTC/USDT is based on the price of BTC spot to USDT on each exchange; while the index price of BTC/USD currency-margined perpetual contract is based on the price of each exchange. BTC spot price against USD.
Contract face value
The value of each contract of a USDT-based perpetual contract is the corresponding underlying currency. For example, the face value of BTC/USDT is 0.001BTC; the value of each contract of a currency-based perpetual contract is USD, for example, the face value of a BTC/USD contract is USD 100. .
Profit and loss currency
All types of USDT-margined perpetual contracts use the denomination currency USDT to calculate profit and loss; currency-margined perpetual contracts calculate profit and loss based on the underlying currency. For example, if a user trades BTC/USD currency-margined perpetual contracts, the currency of profit and loss is BTC.