Perpetual Contract Introduction | Intro to Crypto Futures

Phemex Perpetual Contract

A Perpetual Contract is a derivative product that is similar to a traditional Futures Contract (an agreement to buy or sell a commodity at a predetermined price at a specified time in the future), but with one main difference: contrary to Futures, Perpetual Contracts do not have an expiry date, so you can hold a position for as long as you like. In addition, perpetual contracts mimic the margin-based spot market and hence trade close to the Index Price. This allows you to amplify the outcome of the deal, but it also means that a decrease in the price of a commodity equal to your initial margin (the percentage of the total Funds you provided as a collateral) will automatically liquidate your equity and close your position.

BTC Perpetual contracts and USD Perpetual contracts.

At Phemex, users can use two different base currencies to trade all contracts. For contracts based on BTC, each contract is worth 1 USD of Bitcoin (1USD/current BTC price). Profits and Losses are calculated in terms of the contract's BTC value. Profits are equal to the difference between the contract’s value at Open Price (1USD/Open BTC price) and the contract’s value at Close Price (1USD/Close BTC price), times the Quantity. Losses are equal to the difference between the contract’s value at Close Price (1USD/Close BTC price) and the contract’s value at Open Price (1USD/Open BTC price), times the Quantity. Both functions are nonlinear, meaning that both do not have a constant rate of change. For USD based contracts, instead, the value of each contract is not predetermined. For instance, in ETHUSD contracts, each contract is worth the equivalent of 0.005 ETH, and for XRPUSD, each contract is worth the equivalent of 5 XRP. Profits and Losses are calculated based on the value of the contract in USD: both equal the difference between Close Price and Open Price, times the Quantity. Both functions evolve in a linear manner, having constant rates of change.

Deposit and Withdrawal

We support BTC, ETH, LINK, USDT, and XRP deposits and withdrawals. To begin trading, simply transfer your desired cryptocurrency from its corresponding Phemex Wallet into your target Trading Account. For example, when you intend to trade USD-based perpetual contracts using BTC, you will have to convert a certain amount of BTC to fund your USD Trading Account. Similarly, you will have to convert your USD into BTC when transferring funds back into your Phemex Wallet to withdraw. All conversions are automatic and based on the Spot price of the cryptocurrency you are using.

Get Started

Products

Spot Trading Contract Trading Welcome Bonus

Support

API Documentation Contract References

Links

CoinMarketCap CoinGecko Nomics Coincodex

Community

PHEMEX RISK WARNING

INVESTING INHERENTLY INVOLVES RISKS, DO SO AT YOUR OWN RISK.

THIS PHEMEX RISK WARNING ILLUSTRATES POTENTIAL RISKS THAT YOU MAY FACE WHILE USING PHEMEX.COM AND ALL OF ITS ASSOCIATED SERVICES, AND AIMS TO HELP YOU EVALUATE AND DETERMINE YOUR OWN CAPABILITIES. PLEASE MAKE SURE THAT YOU CAREFULLY READ AND FULLY UNDERSTAND THE TERMS, ARTICLES AND/OR CONDITIONS OF THIS PHEMEX RISK WARNING. BY CONTINUING TO USE PHEMEX.COM YOU HEREBY ACKNOWLEDGE THAT YOU HAVE ACCEPTED THE RISKS DISCLOSED UNDER THIS PHEMEX RISK WARNING. PHEMEX RESERVES THE RIGHT TO MODIFY ANY OF THE TERMS OF THIS PHEMEX RISK WARNING WITHOUT PRIOR NOTICE. IF ANY OF THE TERMS HEREUNDER ARE UNACCEPTABLE TO YOU, YOU SHOULD NOT USE PHEMEX.COM. CRYPTOCURRENCY TRADING IS HIGH-RISK AND SPECULATIVE, IT IS IMPORTANT THAT YOU UNDERSTAND THE RISKS BEFORE YOU START TRADING.

THE RISKS OF INVESTING WITH PHEMEX.COM INCLUDE, BUT ARE NOT LIMITED TO, THE FOLLOWING:

1. PRICE RISKS:

PRICES CAN AND DO FLUCTUATE ON ANY GIVEN DAY. THIS IS ESPECIALLY TRUE FOR CRYPTOCURRENCY TRADING – UNEXPECTED CHANGES IN MARKET SENTIMENT CAN LEAD TO SHARP AND SUDDEN MOVEMENT IN PRICE. IT IS NOT UNCOMMON FOR THE VALUE OF CRYPTOCURRENCIES TO QUICKLY DROP BY HUNDREDS, IF NOT THOUSANDS OF DOLLARS.

2. REGULATORY RISKS:

CRYPTOCURRENCY TRANSACTIONS MAY FACE POLICY REGULATORY RISKS IN CERTAIN JURISDICTIONS AND MAY BE SUSPENDED OR PROHIBITED AT ANY TIME. THEREFORE, WE ADVISE YOU MAKE A CAREFUL JUDGMENT BEFORE TRADING AND TAKE THE TIME TO UNDERSTAND THE POLICY REGULATIONS OF YOUR TRADING REGION AND EVALUATE THE ECONOMIC RISK OF LOSING THE ENTIRE INVESTMENT.

3. TAX RISKS:

CRYPTOCURRENCY TRADING MAY BE SUBJECT TO TAXATION. YOU ARE SOLELY RESPONSIBLE FOR WITHHOLDING, COLLECTING, REPORTING, PAYING, SETTLING AND/OR REMITTING ANY AND ALL TAXES TO THE APPROPRIATE TAX AUTHORITIES IN ANY SUCH JURISDICTION(S) IN WHICH YOU MAY BE LIABLE TO PAY TAX. PHEMEX SHALL NOT BE RESPONSIBLE FOR WITHHOLDING, COLLECTING, REPORTING, PAYING, SETTLING AND/OR REMITTING ANY TAXES (INCLUDING, BUT NOT LIMITED TO, INCOME, CAPITAL GAINS, SALES, VALUE ADDED OR SIMILAR TAX) WHICH MAY ARISE FROM YOUR PARTICIPATION IN THE CRYPTOCURRENCY TRADING.

4. REGION LIMITATION RISKS:

PHEMEX CANNOT AND DOES NOT PROVIDE SERVICES TO COUNTRIES OR TERRITORIES WHERE CRYPTOCURRENCY TRADING ACTIVITIES ARE SPECIALLY LICENSED, ACCREDITED, OR REGULATED IN OTHER WAYS. YOU SHALL CHECK THE APPLICABLE LAWS IN YOUR REGION AND BE FULLY RESPONSIBLE FOR ANY NEGATIVE IMPACT THAT MAY ARISE FROM YOUR RESIDENT COUNTRY’S REGULATIONS. IF YOU ARE TRAVELLING TO ANY SUCH COUNTRIES, YOU ACKNOWLEDGE THAT OUR SERVICES MAY BE UNAVAILABLE AND/OR BLOCKED.

5. RISKS OF CHANGE OR TERMINATION OF SERVICE:

PLEASE NOTE THAT PHEMEX IS IN THE PROCESS OF UNDERTAKING A LEGAL AND REGULATORY ANALYSIS OF BITCOIN TRADING WITH MARGIN. FOLLOWING THE CONCLUSION OF THIS ANALYSIS, PHEMEX MAY DECIDE TO AMEND THE INTENDED FUNCTIONALITY IN ORDER TO ENSURE COMPLIANCE WITH ANY LEGAL OR REGULATORY REQUIREMENTS TO WHICH PHEMEX IS SUBJECT. WE SHALL PUBLISH A NOTICE ON OUR WEBSITE OF ANY CHANGES OR MODIFICATIONS TO THE FUNCTIONALITY AND IT IS YOUR RESPONSIBILITY TO REGULARLY CHECK OUR WEBSITE FOR ANY SUCH NOTICES. ON THE CONCLUSION OF THIS ANALYSIS, WE WILL DECIDE WHETHER OR NOT TO CHANGE THE FUNCTIONALITY OF THE WEBSITE.

6. RISKS OF CRYPTOCURRENCY CONTRACT TRADING:

RISKS OF CRYPTOCURRENCY DERIVATIVE CONTRACT TRADING: TRADING DERIVATIVE CONTRACTS POSES ADDITIONAL RISKS NOT FOUND WITH TRADITIONAL CURRENCIES. CRYPTOCURRENCIES ARE ASSOCIATED WITH SUBSTANTIAL PRICE MOVEMENTS, HIGHER MARKET VOLATILITY, AND MORE CHARGES OR FEES. THESE FACTORS CAN LEAD TO INCREASED GAPPING OR SLIPPAGE COSTS.

CONTRACT TRADING OFTEN EMPLOYS LEVERAGE, WHICH INCREASES EXPOSURE TO BOTH PROFITS AND LOSSES. IF THE MARKET MOVES IN A DIRECTION THAT OPPOSES YOUR POSITION, YOU WILL EXPERIENCE A RAPID AND SIGNIFICANT LOSS. IT IS YOUR RESPONSIBILITY TO SET A STOP LOSS INSTRUCTION TO MITIGATE YOUR EXPOSURE AND TO AVOID FORCED LIQUIDATIONS. IN THE CASE OF A LIQUIDATION YOU WILL BEAR ALL THE LOSSES. PLEASE NOTE THAT ONCE AN ORDER IS SUBMITTED AND FILED BY OUR TRADING PLATFORM, IT IS FINAL AND IRREVOCABLE. YOU MUST ACCEPT ALL RISKS AND CONSEQUENCES OF YOUR TRADES.

THE ABOVE IS A NON-EXHAUSTIVE LIST. TAKING ALL OF THE ABOVE INTO CONSIDERATION, PRIOR TO USING PHEMEX.COM FOR CRYPTOCURRENCY TRADING, YOU PROMISE THAT YOU:

1. ARE OF AN AGE OF MAJORITY (AT LEAST 18 YEARS OF AGE), MEET ALL ELIGIBILITY AND RESIDENCY REQUIREMENTS, ARE FULLY ABLE AND LEGALLY COMPETENT TO USE PHEMEX.COM AND THUS ENTER INTO AN AGREEMENT WITH PHEMEX - ENSURING THAT IN DOING SO YOU WILL NOT VIOLATE ANY OTHER AGREEMENT TO WHICH YOU ARE A PARTY;

2. HAVE THE NECESSARY AND RELEVANT EXPERIENCE AND KNOWLEDGE TO DEAL WITH AND MANAGE CRYPTOCURRENCIES AND BLOCKCHAIN-BASED SYSTEMS, WITH A FULL UNDERSTANDING OF THEIR FRAMEWORKS AND ARE AWARE OF ALL THE MERITS, RISKS AND ANY RESTRICTIONS ASSOCIATED WITH CRYPTOCURRENCIES AND BLOCKCHAIN-BASED SYSTEMS, BEING SOLELY RESPONSIBLE FOR ANY EVALUATIONS BASED ON SUCH KNOWLEDGE;

3. ARE NOT A FOREIGN OR DOMESTIC POLITICALLY EXPOSED PERSON (PEP);

4. WILL NOT BE USING PHEMEX.COM FOR ANY ILLEGAL ACTIVITY, INCLUDING BUT NOT LIMITED TO, MONEY LAUNDERING AND THE FINANCING OF TERRORISM.

PLEASE NOTE THAT ALL DATA ANALYSIS, PROJECTIONS, CONTENT, RESEARCH, TOOLS, AND COIN SYMBOLS ARE FOR EDUCATIONAL AND ILLUSTRATIVE PURPOSES ONLY. THEY DO NOT IMPLY OUR RECOMMENDATION OR SOLICITATION TO BUY OR SELL A PARTICULAR ASSET OR TO ENGAGE IN ANY PARTICULAR INVESTMENT STRATEGY. PROJECTIONS OR OTHER INFORMATION REGARDING THE LIKELIHOOD OF VARIOUS INVESTMENT OUTCOMES ARE HYPOTHETICAL IN NATURE AND DO NOT REFLECT ACTUAL INVESTMENT RESULTS OR A GUARANTEE OF FUTURE RESULTS. YOU ALONE ARE RESPONSIBLE FOR EVALUATING THE MERITS AND RISKS ASSOCIATED WITH THE USE OF CRYPTOCURRENCY TRADING ON PHEMEX.COM. WE ADVISE YOU, TO THE EXTENT NECESSARY, TO CONSULT AN APPROPRIATE FINANCIAL ADVISER, ACCOUNTANT, LAWYER, OR TAX PROFESSIONAL PRIOR TO ENGAGING IN CRYPTOCURRENCY TRADING.

WE STRONGLY SUGGEST THAT YOU TAKE THE TIME TO MAKE AN INFORMED DECISION WHETHER TO ENGAGE IN CRYPTOCURRENCY TRANSACTIONS AND REASONABLY ALLOCATE DIGITAL ASSETS ACCORDING TO YOUR OWN FINANCIAL SITUATION.

THE TERMS USED IN THIS PHEMEX RISK WARNING SHALL HAVE THE SAME MEANINGS AS IN THE PHEMEX TERMS OF USE EXCEPT WHERE STATED OTHERWISE.

Phemex is a professional and trustworthy global cryptocurrency and derivatives trading platform.