Introduction to Futures Contracts
A futures contract is a derivative product that allows traders to buy or sell an underlying asset at a predetermined price on a specified future date. Unlike perpetual contracts, futures contracts have an expiration date, at which point the contract is settled.
XT.Exchange offers USDT-margined (USDT-M) and Coin-margined (Coin-M) futures with no funding fees. These contracts share margin accounts with perpetual contracts in cross-margin mode.
Key Features of XT Futures Contracts
- Fixed expiration date (weekly, monthly, quarterly).
- No funding fees—only trading and settlement fees apply.
- Settlement at expiry—positions are automatically closed at the settlement price.
- Mark price-based liquidation to prevent market manipulation.
Futures Contract Naming Convention
Example: BTC_USDT0106
- BTC = Base currency
- USDT = Quote currency
- 0106 = Expiration date (January 6)
- “This week” = Weekly contract
Settlement Process
- XT uses a 1-hour weighted average index price before settlement to determine the final price.
- No new positions can be opened in the last 10 minutes before delivery.
- Settlement Times (UTC):
- Weekly: 8:00 AM every Friday
- Monthly: 8:00 AM on the last Friday of the month
- Quarterly: 8:00 AM on the last Friday of the quarter
After settlement, new contracts (next week/month/quarter) inherit the previous contract’s K-line data.
2. Futures Trading & Settlement Fees
Trading Fees
| Order Type | Fee Rate |
|---|---|
| Maker | 0.04% (VIP discounts available) |
| Taker | Variable (see tiered fee table) |
Settlement Fees
- Charged at the taker fee rate for all positions settled on the delivery date.
- No funding fees apply (unlike perpetual contracts).
Formula:Trading Fee = Position Value × Fee Rate
3. PNL Calculation for Futures Contracts
For USDT-Margined Futures
- Long Position PNL:
Amount × Face Value × (1 / Avg. Open Price – 1 / Mark Price) - Short Position PNL:
Amount × Face Value × (1 / Mark Price – 1 / Avg. Open Price)
For Coin-Margined (Inverse) Futures
- Same formula as USDT-M contracts but settled in BTC/ETH.
4. Mark Price Calculation
Before Delivery
| Contract Type | Formula |
|---|---|
| USDT-M Futures | Index Price + 5-Min Basis MA |
| Coin-M Futures | Index Price + 30-Min Basis MA |
On Delivery Day
- If >1 hour remaining: Same as above.
- If ≤1 hour remaining:
Mark Price = Average Index Price(1-second interval).
5. Risk Management: Insurance Fund & ADL
Insurance Fund
- Covers liquidation losses.
- USDT-M contracts: Separate pools per asset (e.g., BTCUSDT & ETHUSDT have independent funds).
- Coin-M contracts: Shared pool per underlying (e.g., all BTCUSD contracts share one BTC fund).
Auto-Deleveraging (ADL)
- Triggers when insurance funds are insufficient.
- Closes counterparty positions at mark price (no forced loss-sharing).
Why Trade Futures on XT.Exchange ?
✔ Zero funding fees
✔ Transparent settlement process
✔ Advanced risk management (Insurance Fund + ADL)
✔ Supports USDT, BTC, and ETH settlements
Join XT.Exchange today—trusted by 8M+ users with 800+ tokens and 1000+ trading pairs!