Index Futures

What is the Index Futures

DragonEx GOLD Index Futures takes PAXG and XAUT spot price indices as the subject matter, and supports USDT as a margin for trading Futures. More object and token margin will be supported in the future. 

Investors can buy long contracts to get the gains from the increase in the PAXG and XAUT spot price indices, or sell short contracts to get the gains from the decline in the PAXG and XAUT spot price indices.

Contract Factor

Leverage and Margin

The leverage supported by index Futures : 1X, 2X, 4X, 5X, 10X, 20X, 50X, 100X, 125X, 200X.

Frozen Margin for Positions = Number of Positions * Contract Face Value * Marked Price/Leverage

 Marked price and position profit and loss

Marked price is used to calculate the user's position profit and loss, effectively reducing unnecessary frequent forced liquidation during market fluctuations.

Position profit and loss = number of positions held * contract face value * position direction * (marked price-average position price), long position holding direction = 1, short position holding direction = -1

Marked price = spot index price + basis moving average

Basis moving average = moving average (contract middle price-spot index price)

Spot index price = weighted average of the price of each component exchange transaction

1. Component exchange (weight): FTX (20%), KARKAN (20%), BITFINEX (20%), Bithumb Global (20%), Binance(20%)

2. Get the latest transaction price and volume of exchange currency pairs of all index components of PAXG and XAUT in real time. Thetoken pair whose price is BTC is multiplied by the BTC/USDT index and converted into USDT price.

3. Special treatment:

   • Single price source deviation: When the latest price of an exchange deviates from the median price of all price sources by more than 5%, the price weight of the exchange will be set to zero.

   • Multi-price source deviation: If the latest price of more than one exchange has a deviation of more than 5%, the median price of all price sources will replace its weighted average and be used as the price index value.

   • Exchange connection problem: If we cannot access the data of the exchange, and the exchange has updated the transaction data within the last 10 seconds, we can obtain the price data from the latest results and use it for the calculation of the price index.

Fee

The fee is charged once a day, the collection time: 08:00:00, UTC+8;

Only charge funds for accounts with positions at the time of collection;

Fee = position value * fee rate

Tiered maintenance margin rate

Tiered maintenance margin rate system: The maintenance margin rate is the minimum margin rate required for users to maintain their current positions. When the margin rate is lower than the maintenance margin rate + liquidation fee rate, the forced liquidation is triggered. For users of different position sizes, DragonEx implements a tiered maintenance margin rate system, which is the larger the user's position, the higher the maintenance margin rate, and the lower the maximum leverage that the user can select.

The positions of all directions of the index contract account are calculated together with the number of contracts, gears, and the required maintenance margin rate for the positions. When a user holds both a long position and a short position under one contract, the number of user sheets are calculated by adding the number of long and short positions.

GOLD Position Table

Forced liquidation

When the account margin rate is lower than the maintenance margin rate and the liquidation fee rate,

the system will directly entrust all the number of contracts under the contract ( If full position) at the bankruptcy price (the price at which the margin rate is zero) to Liquidation engine. 

• Margin rate = account equity / (position value + commission value) * 100%
• Account equity = Asset + position profit and loss
• Position value = number of positions * face value * marked price
• Commission value = frozen margin * leverage

This early liquidation mechanism is mainly to avoid the adverse effects caused by the violent fluctuation of the Cryptocurrency market caused by the serial liquidation and the wearing (positions after the liquidation cannot be traded).

Market Closure System

In order to protect the rights and interests of investors and prevent the target price from being manipulated, the index contract will be closed during periods of insufficient market activity. During the market break, positions cannot be opened and closed, but margin transfers are possible.

The specific closure time:

• Weekly: Saturday 05:00:00 ~ Monday 06:00:00, UTC+8]
• Daily: 05:00:00 ~ 06:00:00 (UTC+8)
• The market may be closed during national holidays, please pay attention to DragonEx announcements.