The SOPHUSDT perpetual contract is now officially available for trading on the platform. This new derivative instrument offers traders a flexible way to gain exposure to the price movements of SOPH, settled in USDT. This guide provides a comprehensive overview of its key features and essential details for interested participants.
Core Contract Specifications
The SOPH perpetual contract is designed with specific parameters to ensure efficient and transparent trading. Below are the fundamental details every trader should understand before engaging.
| Contract Element | Specification |
|---|---|
| Underlying Asset | SOPH/USDT Index |
| Settlement Currency | USDT |
| Contract Face Value | 100 |
| Price Quotation | Price of 1 SOPH in USDT |
| Minimum Price Movement (Tick Size) | 0.00001 |
| Leverage | 0.01x to 50x |
| Funding Rate Interval | Every 4 hours |
| Trading Hours | 24/7 |
Understanding the Funding Rate Mechanism
The funding rate is a critical component of perpetual contracts, designed to keep the contract price aligned with the underlying spot price. For the SOPH contract, the funding rate is calculated using a specific formula.
The rate is determined as:clamp [Average Premium Index + clamp (Interest Rate – Average Premium Index, 0.05%, -0.05%), 1.50%, -1.50%].
This mechanism ensures the rate remains within a manageable band, balancing the incentives between long and short position holders. For a deeper dive into how the average premium index and interest rate are calculated, you can review the detailed product documentation.
Initial Launch Period Considerations
To ensure stability during the initial launch phase, a temporary cap on the funding rate has been implemented. This measure helps prevent excessive funding costs while the new market finds its equilibrium.
- Before 00:00 on May 29, 2025 (UTC+8): The maximum funding rate is capped at 0.5%.
- After 00:00 on May 29, 2025 (UTC+8): The standard maximum funding rate cap of 1.5% will be reinstated.
Please note that the first funding fee under the normal 1.5% cap will be collected at 04:00 on May 29, 2025 (UTC+8). The platform reserves the right to adjust the funding rate further based on market conditions to mitigate significant price deviations.
Trading Rules and Execution
The trading rules for the SOPHUSDT perpetual contract, including order types (e.g., limit orders) and other execution parameters, are consistent with those of other established perpetual contracts on the platform. This standardization helps provide a seamless trading experience across different instruments. For a full understanding of all applicable rules and terms, 👉 explore the perpetual contract documentation.
Frequently Asked Questions
What is a USDT-margined perpetual contract?
A USDT-margined perpetual contract is a derivative product that allows you to speculate on an asset's future price without an expiry date. All profits, losses, and margin requirements are denominated in USDT, simplifying the process for traders who hold stablecoins.
How is the funding rate calculated and paid?
The funding rate is calculated periodically (every 4 hours) based on the difference between the perpetual contract market price and the underlying spot index price. It is exchanged between traders holding long and short positions; if the rate is positive, longs pay shorts, and if negative, shorts pay longs.
What leverage can I use with the SOPH contract?
The SOPHUSDT perpetual contract offers flexible leverage options, allowing traders to select a level between 0.01x and 50x. It is crucial to remember that while leverage can amplify profits, it also significantly increases the risk of substantial losses.
Why is there a special funding rate cap at launch?
New markets can experience high volatility and potential price dislocations. Implementing a temporary lower cap on the funding rate at launch helps protect traders from abnormally high costs during this initial period of price discovery and stabilization.
Where can I find the complete terms of trading?
The complete set of rules, terms, and conditions governing the use of perpetual contracts is detailed in the official user agreement. It is highly recommended to review this document thoroughly before trading any derivative products.