FAQ for Coin-margined Perpetual Contract

1. What is a perpetual contract?

A perpetual contract is a product which can be traded like a traditional futures contract but never expires.This means you can hold a position for as long as you like. Perpetual Contracts track the underlying Index Price through the use of periodic payments between buyers and sellers of the contract known as Funding.

2. What is the mark price?

Perpetual contracts are marked according to fair price marking. The mark price determines unrealised PnL and liquidations.

3. How much leverage can I use with a MEXC perpetual contract?

The amount of leverage offered by a MEXC perpetual contract varies by product. Leverage is determined by your initial margin and maintenance margin levels. These levels specify the minimum margin you must hold in your account to enter and maintain your position. Your allowed leverage is not a fixed multiplier but a minimum margin requirement.

4. What are your trading fees like?

The current trading fee rate for all perpetual contracts on MEXC is 0.02% (Maker) and 0.06% (Taker).

5. How can I check the funding rate?

Traders can check the current market funding rate in the “Funding Rate” section under the “Futures” tab.

You may also take a look at the historical funding rate through the funding rate history page.

6. How do I calculate my contract PnL?

PnL calculation (Closing Positions):

i) Swap (USDT)

Long position = (Average Price at which position is closed - Average Price at which position was opened) * number of positions held * face value

Short position = (Average price at which position was opened - Average Price at which position was closed) * number of positions held * face value

ii) Inverse Swap (Coin-Margined)

Long position = (1/Average Price at which position is closed - 1/Average Price at which position was opened) * number of positions held * face value

Short position = (1/Average price at which position was opened - 1/Average Price at which position was closed) * number of positions held * face value

Floating PnL:

i) Swap (USDT)

Long position = (Fair Price - Average Price at which position was opened) * number of positions held * face value

Short position = (Average price at which position was opened - Fair Price) * number of positions held * face value

ii) Inverse Swap (Coin-Margined)

Long position = (1/Fair Price - 1/Average Price at which position was opened) * number of positions held * face value

Short position = (1/Average price at which position was opened - 1/Fair Price) * number of positions held * face value