Perpetual Contracts

Overview

A perpetual futures contract is an agreement to buy or sell an asset at an unspecified point in the future. Globe's perpetual futures are all settled in USD (US Dollars), and differ from regular futures as they do not have a pre-specified delivery date, therefore they can be held indefinitely. Payments are periodically (every 8 hours) exchanged between holders of the two sides of the contracts, long and short, with the direction and magnitude of the settlement based on the difference between the contract price and that of the underlying asset (as set by the index price). This mechanism is known as funding, and more details on the funding amount can be found below.

Leverage

Globe offers up to 100x leverage on the perpetual contracts. Therefore you do not need to post 100% collateral as margin. All margin is denominated in USD. See leverage.

Contracts

All perpetual contracts offered are linear contracts, and each contract has a size of a fixed amount of the base currency. For example, one contract of BTC-PERP has a size of 0.0001 BTC, and the cost of this contract in USD is calculated using the index price. The price tick size is the minimum increment in price that can be traded.

Product Price Tick Size Lot Size (Contract Size)
BTC-PERP $1.0000 0.0001 BTC
ETH-PERP $0.1000 0.001 ETH
UNI-PERP $0.0100 0.1 UNI
DOGE-PERP $0.0001 10 DOGE
BTC-VIX $0.0100 0.01 VIX
AVAX-PERP $0.0100 0.1 AVAX
LUNA-PERP $0.0100 0.1 LUNA
SOL-PERP $0.0100 0.1 SOL
MATIC-PERP $0.0001 1 MATIC
FTM-PERP $0.0001 1 FTM
DOT-PERP $0.0010 0.1 DOT
APE-PERP $0.0010 0.1 APE

Funding

Funding occurs every 8 hours, three times a day, always at the following times: 00:00 UTC, 08:00 UTC and 16:00 UTC. You must be holding either a short or a long position at the time of funding to receive a funding payout. When the funding rate is positive, for example +0.01%, longs pay 0.01 % of their positions to shorts, who receive 0.01 % on their positions at the time of funding. Globe does not charge any fees on funding.

The funding payment received is:

funding_payment  =  number_of_contracts    index_price    funding_rate 

Funding Rate Calculation

Central to the core of perpetual futures is the funding mechanic which makes the contract price tend to track the mark price of the underlying index price of the contract. It consists of the premium (or discount) rate.

Premium (or Discount) rate

The price of the instrument may be at a significant premium or discount to the underlying mark price. In these situations, the Premium rate will be used to raise or lower the next funding rate. It is calculated as:

premium_rate  =  mark_price    index_price  index_price 

The funding rate is dampened by  0.05 % , defined by the following equation:

funding_rate  =  max  ( 0.05 % ,  premium_rate  ) +  min  (  0.05 % ,  premium_rate  )

Which means:

  • If the premium rate is between   0.05 %  to  0.05 %  the funding rate will be set to  0 %
  • If the premium rate is greater than  0.05 %  the funding rate will be reduced by  0.05 %
  • If the premium rate is less than   0.05 %  the funding rate will be increased by  0.05 %

The final funding rate is then computed using a 8 8  hour time weighted average price over rates.

Index Price

The index price of each perpetual product is calculated from the spot price of the asset on other exchanges, except for exotic perpetuals, such as BTC-VIX.

Exchanges used include Ascendex, Binance, Bitfinex, Bitstamp, Bybit, Coinbase Pro, FTX, Kraken.

Mark Price

The mark price is composed of the fair price, which is the average of the fair impact ask price and fair impact bid price. Defined as: 

  • fair impact ask price is the average price of 10,000 $ USD market purchases or the best ask price + 0.15 %  whichever is the lower value
  • fair impact bid price is the average price of 10,000 $ USD market sales or the best bid price   0.15 %  whichever is the higher value

fair_price  =  fair_impact_bid_price  +  fair_impact_ask_price  2 

The mark price takes into account the difference between the fair price and the index price, by applying a 30 second exponential moving average to the difference, and then clamping the result by 0. 0.5 %  of the index price (i.e. if the result was greater than  0.5 %  of the index price it would saturate at 0. 0.5 %  of the index price, and similarly if the result was lower than   0.5 %  of the index price the output would saturate at   0.5 %  of the index price). The result is then added (centred) at the index price

mark_price=index_price+clamp(EMA30(fair_price−index_price),−0.5%⋅index_price,+0.5%⋅index_price)

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