Liquidation Price
When the last price is less than or equal to the liquidation price of a certain position, a forced liquidation will occur. It is recommended that users pay close attention to the last price and the trend of forced liquidation price to avoid being forcibly liquidated.
Forced Liquidation Price = (Position Size * Open Price - Accumulated Funding Rate - Initial Margin * Liquidation. Lost Rate) / Position Size * Position Direction
· Position Size = Initial Margin * Leverage Multiple / Entry Price
· If the position direction is UP, the calculation of position direction will be 1, whereas if the position direction is DOWN, the calculation of position direction will be -1
· The current system’s Liquidation Lost Rate is 85% for BTCUSDT and ETHUSDT, other trading pairs are 80%
Note:
Liquidation price may change when there are any changes in the Funding Rate
Fees
Trading Fee
0.06% Trading Fee will be charged for both Opening and Closing a position.
For example, if the user’s initial margin is 10 USDT and the leverage is 100 times in BTCUSDT , then the user’s opening and closing fees will be: 10*100*0.06%=0.6 USDT
Funding Fee Rate
Simple Futures differs from Standard Futures. The Funding Rate of Simple Futures differs from that of Standard Futures, CommEX will collect a Funding fee rate to balance the UP and Down ratios, which helps to reduce market risk.
The calculation formula for this funding fee rate is provided below:
Funding Rate= {clamp{Floor, {ABS[(Long OI - Short OI) * Funding Fee Per Hour/M % ] / Max (LongOI, ShortOI)} ,Cap} }
Parameters:
- Long open interest: The total number of UP positions on the platform;
- Short open interest: The total number of DOWN positions on the platform;
- Funding Fee Per Hour: The Funding Rate will be charged on an hourly basis. It may be adjusted based on market performance; currently the funding rate is 0.00114%;
- Floor & Cap: The funding rate has a cap and floor. The Funding Fee Rate Floor is set at 0.00011%, while the Funding Fee Rate Cap is set at 0.05708%；
Note:
Funding payment is generated hourly. For example, if a user opens a position at 05:12 and holds it until 05:59, no funding payment will be made. However, if a user holds the position until 06:00, then a funding payment will be made.
Mark Price & Index Price
Mark Price is closely correlated with the funding rate, and vice versa. We use this Mark Price to prevent unnecessary liquidations for our traders and to deter market manipulation.
Since Unrealized PnL is the primary driver of liquidations, it's crucial to guarantee its accurate calculation to prevent unnecessary liquidations. Hence, Mark price is used for calculating unrealized PnL. The “Price Index,” which is the primary component of the Mark Price, represents an average of the prices from major mainstream markets.
The Price Index is a composite index derived from a basket of prices sourced from various major Spot Market exchanges, weighted according to their respective trading volumes. Included trading markets are: Binance, Huobi, HitBTC, Gate.io, Bitmax, Poloniex, OKX, KuCoin, Ascendex, MEXC, Bitfinex, Coinbase, Bitstamp, Kraken and Bybit.
Note: Simple Futures do not have an order book, and thus Mark price is equal to Last Price.
To learn more about Mark Price, kindly visit the following articles: Mark Price
Position Management
Users can manage positions by choosing the [ Positions ] button on the trading dashboard. Users can check details such as trading pairs, direction, entry price, liquidation price, Leverage and other relevant information.
Position Mode
Simple Futures offers Isolated leveraged mode for every trading pair and position. Positions are always individual ones.
- Each trading pair is an isolated position, allowing users to open multiple isolated positions
- Each position is held and run individually. Currently, there is no option to add margin to an existing position.
- Every isolated trading position has its own unique risk rate and liquidation price, and each position is settled individually
- Liquidation risk is isolated for each trading pair, which means liquidation of a position will not affect any other positions