What is a Futures Contract?
A Futures Contract is an agreement to buy or sell a commodity, currency, or other instruments at a predetermined price at a specific time in the future.
What is a Perpetual Contract?
A Perpetual Contract is similar to a traditional futures contract in terms of trading, yet it will not expire so that you can hold a position for as long as you wish. The Perpetual Contract at BaseFEX tracks the underlying Index Price.
It achieves this via a Funding mechanism.
What is Mark Price?
How does BaseFEX calculate the Settlement Price?
Settlement Price is the price where a futures contract settles. To avoid price manipulation, BaseFEX takes an averaging over some time before the settlement, yet this time frame might fluctuate due to different instruments.
How to buy or sell a Perpetual Contract?
Go to the Trade dashboard, then choose the quantity, price, and direction you want to trade and use
Sell/Short buttons to place your order.
Bid and Ask?
Bid is a standing order where you want to buy/long a contract at a specific price and quantity. Ask is a standing order where you want to sell/short a contract at a specific price and quantity.
How much leverage does BaseFEX offer?
BaseFEX offers different amounts of leverage for different products.
Leverage is determined by the Initial Margin and Maintenance Margin levels. These levels specify the minimum equity you must hold in your account to enter and maintain your positions. Leverage is not a fixed multiplier but rather a minimum equity requirement. You can see the minimum Initial Margin and Maintenance Margin levels for all products at Risk Limits.
BaseFEX offers leverage on each of its products, and the highest leverage offered at BaseFEX is up to 100x, such as the BTC/USD Perpetual Contract.
What is Initial Margin?
Initial Margin is the minimum amount of Bitcoin or USDT you must deposit to open a position.
What is Maintenance Margin?
Maintenance Margin is the minimum amount of Bitcoin or USDT you must hold to keep your position open. Once your margin balance on BaseFEX falls below this level, your position will be liquidated automatically.
Why would I be liquidated?
If the Mark Price of your contract falls below your liquidation price for Long position, or it rises above your liquidation price for Short position, your Maintenance Margin level will be broken, and the system will take over the position instead. You can check your liquidation price in Trade History, where your liquidated position is closed at the Bankruptcy Price (which means your Maintenance Margin is equal to 0).
How does a Liquidation happen?
Once your position is going to be liquidated, the system will try to close the position at the prevailing market price. However, if the system fails to liquidate that position, then our Liquidation Insurance Fund comes to handle.
What is Insurance Fund?
The Insurance Fund is created to take on the unfilled liquidation orders before they are handled by the Auto-Deleveraging system.
Our Insurance Fund comes from liquidations that were able to be executed in the market at a price better than the bankruptcy price of that particular position.
What is Auto-Deleveraging?
Auto-Deleveraging happens when a liquidation remains unsettled in the market. Those who hold opposite positions will be closed according to leverage and priority based on the profits.
Does BaseFEX charge fees on Auto-Deleveraging?
No. BaseFEX does not charge any fees during the process of Auto-Deleveraging.
Will I get bankrupted?
No. BaseFEX has established a profound mechanism to protect the funds of our users. Your margin balance on the platform will never fall below 0.
Will BaseFEX socialize losses?
No. Since we have our Auto-Deleveraging mechanism, we do not need to socialize the losses further.
Does BaseFEX charge fees on depositing Bitcoin or USDT?
No. No fees will be charged on deposits at BaseFEX.
Does BaseFEX charge fees on withdrawing Bitcoin or USDT?
No. No fees will be charged on withdrawals at BaseFEX. If you want to withdraw your Bitcoin or USDT, the minimum Bitcoin or USDT Network fee will be charged according to the blockchain load.
Does BaseFEX charge fees on trading?
Yes. BaseFEX charges a trading fee on every completed trade. You can check the Fees for detailed information.
Deposits and Security
How can I deposit?
What is the minimum deposit amount on BaseFEX?
The minimum deposit amount on BaseFEX is zero.
What kind of wallet does BaseFEX use?
BaseFEX stores all Bitcoin or USDT in a cold multi-signature wallet.
What is a cold multi-signature wallet?
A Cold multi-signature wallet stores your Bitcoin or USDT offline and requires multiple signatures to make any expense. At BaseFEX, we require 5 out of 7 partners to sign for any transaction before the expense.
Why does BaseFEX use multi-signature address?
We use this kind of address to prevent any theft to ensure the safety of our users' funds.
When does BaseFEX handle the withdrawals?
The cutoff time for Bitcoin or USDT withdrawals is at 7:00 UTC+00 every day. Your Bitcoin or USDT will be sent to your address shortly after this time.
How can I get help if I have a problem?
You can send an e-mail to reach out for help. See Support.