Perpetual contracts are derivative products with no expiration date, unlike traditional futures. They allow you to take leveraged positions on any underlying asset without needing to own the asset itself.
Key Characteristics
Feature
Description
No Expiration
Trade indefinitely without settlement dates
Leverage
Up to 100x leverage on supported markets
Long & Short
Profit from both rising and falling markets
USDC Collateral
Single stablecoin collateral for all markets
Oracle Pricing
Fair mark prices from Chainlink/Pyth oracles
Long vs Short Positions
Long Position
Profit when the asset price increases.
Entry: ETH at $2,000
Exit: ETH at $2,200 (10% gain)
With 10x leverage: 100% ROI on collateral
Short Position
Profit when the asset price decreases.
Entry: ETH at $2,000
Exit: ETH at $1,800 (10% drop)
With 10x leverage: 100% ROI on collateral
Margin Requirements
When opening a perpetual position, you must maintain two margin thresholds:
Initial Margin
The minimum collateral required to open a position. Initial Margin = Position Size × Initial Margin Factor
Maintenance Margin
The minimum collateral required to keep a position open. If your collateral falls below this level, your position may be liquidated. Maintenance Margin = Position Size × Maintenance Margin Factor
Note: Higher leverage requires less initial margin but brings you closer to liquidation faster.
Leverage Explained
Leverage allows you to amplify your exposure with less capital.
Leverage
Collateral for $10K Position
Liquidation Point*
2x
$5,000
~50% price move
10x
$1,000
~10% price move
50x
$200
~2% price move
100x
$100
~1% price move
Approximate liquidation points excluding fees and funding.
PnL Calculation
Long Position PnLPnL = (Exit Price - Entry Price) × Position Size
Short Position PnLPnL = (Entry Price - Exit Price) × Position Size
Market Types
MegaBanX supports several perpetual market categories:
Market Type
Examples
Typical Fee
Crypto
BTC, ETH, SOL, ARB
0.10% - 0.20%
Forex
EUR/USD, GBP/JPY
0.20% - 0.30%
Commodities
Gold, Oil
0.30% - 0.45%
Indices
SPX, NDX
0.30% - 0.45%
Key Risks
Risk
Description
Liquidation
Price moving against you can trigger automatic position closure
Funding Rates
Periodic payments may apply depending on market skew
Price Impact
Large orders may have slippage on position entry/exit
Oracle Risk
Price feeds determine liquidation and settlement
Always use appropriate position sizing and stop-loss levels to manage risk.
