What Are Gate.io Perpetual Contracts?
Gate.io’s perpetual contracts are financial derivatives tailored for cryptocurrency trading. Unlike traditional futures, perpetual contracts have no expiry date, allowing users to hold positions indefinitely—making them closer to spot trading in nature.
Gate.io Perpetual Contract Trading Fees
Gate.io differentiates fees between Maker (liquidity provider) and Taker (liquidity remover):
- Maker: Receive a rebate (-0.025%)
- Taker: Pay a fee (0.075%)
Fees are calculated based on position value, independent of leverage.
Example for BTC/USD Perpetual Contract:
| Contract Type | Fee Rate |
|---------------|---------|
| Maker | -0.025% |
| Taker | 0.075% |
Types of Contracts
1. Regular Forward Contracts
- Base/Quote/Settlement currencies are the same (e.g., EOS_BTC).
- Value: Position Size × Price.
2. Quanto (Dual-Currency) Contracts
- Quote and Settlement currencies differ (e.g., ETH_USD settled in BTC).
- Value: Position Size × Price × Exchange Rate.
3. Inverse Contracts
- Base/Settlement currencies are the same (e.g., BTC_USD).
- Value: Position Size ÷ Price.
Key Insight: Inverse contracts avoid fiat (USD) wallet management by using BTC for settlements.
Profit & Loss Calculation
| Contract Type | Profit Formula |
|--------------------|----------------------------------------|
| Regular Forward | Size × (Exit Price – Entry Price) |
| Quanto | Size × (Exit – Entry) × Exchange Rate |
| Inverse | Size × (1/Entry – 1/Exit) |
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Leverage and Margin
- Initial Margin: Minimum funds to open a position.
Formula: (Position Value ÷ Leverage) + Fees. - Maintenance Margin: Minimum funds to keep a position open (e.g., 0.5% for BTC/USD at 100x leverage).
Liquidation: Triggered when margin balance ≤ maintenance margin.
Mark Price vs. Last Price
Gate.io uses Mark Price (derived from external markets) for liquidations to prevent price manipulation.
Benefits:
- Anchors trading price to spot markets.
- Reduces unnecessary liquidations.
Insurance Fund & Auto-Deleveraging
- Insurance Fund: Covers liquidation losses beyond bankruptcy price.
- Auto-Deleveraging (ADL): Closes profitable counter-positions if insurance is insufficient.
Pro Tip: Monitor your ADL ranking on Gate.io to avoid forced closures.
Isolated vs. Cross Margin
| Mode | Description |
|------------|--------------------------------------|
| Isolated | Fixed margin per position. Lower risk. |
| Cross | Shared margin across positions. Higher flexibility. |
Funding Fees
Paid every 8 hours (UTC 0:00, 8:00, 16:00) to align perpetual prices with spot markets.
- Positive Rate: Longs pay shorts.
- Negative Rate: Shorts pay longs.
Order Types
- Limit/Market Orders
- Post-Only: Avoids taker fees.
- Reduce-Only: Closes positions without opening new ones.
- Stop-Loss/Take-Profit: Triggers when mark price hits preset levels.
Restrictions:
- Price deviation ≤ 50% from mark price.
- Orders cannot breach liquidation prices.
FAQ
Q: Why use USD instead of USDT in contracts?
A: USD avoids USDT volatility, simplifying settlements.
Q: How is maintenance margin calculated?
A: (Position Value × Maintenance Ratio) + Fees.
Q: Can I hold both long and short positions simultaneously?
A: No—only one position per contract.
Q: What happens if ADL is triggered?
A: Profitable counter-positions are closed to cover losses.
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Disclaimer: This content is for educational purposes only. Trading involves risks.