Gate.io’s Perpetual Contracts Lead The Way During Market Uncertainty
SINGAPORE, Singapore, 9th September, 2021, Chainwire
Gate.io, a leading digital asset exchange, announced that their perpetual contracts have been offering an insurance fund of more than 1,000 BTC; It automatically provides users with through-position compensation, and provides up to 100 times leverage on BTC in addition to leveraging solutions for ETH, EOS, LTC, BCH, BSV and hundreds of other popular digital assets. Users are able to leverage 20-100 times on long and short services; using the global multi-platform comprehensive index price as the closing index, users can rest assured that they’ve chosen the right platform that incorporates stable operations and risk management.
The longest bull run to date in the global cryptocurrency market came to an almost abrupt end in May, having surged for nearly a year. The May 19 market crash pushed the industry to enforce stronger supervision with tighter control on the products being offered to clients. Many crypto exchanges added new restrictions, focusing on lowering the maximum amount of leverage users were able to use on futures contracts and cancelling high leverage products, most choosing to cap products at a 20 times leverage.
Global regulatory pressure, policy changes and other bad news hit one after the other. Although institutions and users alike have grown accustomed to bad news and uncertainty over the years, this time was different. In an effort to get ahead of regulatory and policy changes, deleveraging certain products became the norm for most crypto exchanges. Besides regulatory hurdles, exchanges remain highly competitive and as such Gate.io has come to rely on its contract offerings to bolster its competitive advantage over industry peers.
“Gate.io Perpetual Contracts are financial derivatives specifically for cryptocurrencies. The biggest difference between perpetual contracts and traditional futures is that there is no delivery date, and users can hold positions indefinitely, so it is closer to spot trading. Users only need to pay attention to buying up and buying down, providing greater leverage than traditional futures contracts and supporting forward contracts, dual currency contracts, and reverse contracts, realizing long and short two-way operations. Gate.io currently supports contract trading in BTC and USDT as settlement currencies,” Marie Tatibouet, CMO at Gate.io, said in a statement.
In order to reduce the transaction costs of users’ contracts, Gate.io has launched a ladder fee structure on contracts, which is intended to significantly reduce the single Taker rate, so that ordinary users can enjoy the lowest transaction fees. For professional market customers, Gate.io has also opened an independent application channel, and market customers can continue to enjoy generous single Maker fee rewards.
Gate.io perpetual contract transaction fees are divided into two directions: Taker: 0.075%; Maker: -0.025%. Users can not only not pay the fee, but also get the fee back as a reward.
Generally speaking, that is, all Maker users can earn fees while also earning revenue. On the other hand, the ladder fee structure is far lower than the fees that competing platforms only offer on high volume trading, and it is one of the more competitive fee structures in the contract market. It allows users to enjoy a high-quality contract service experience of top exchanges at industry low rates.
Zero Share Contract To Provide Insurance Fund
The Gate.io contract uses an insurance fund to ensure the smooth completion of contracts with a strong leveling process. When the loss of the position is greater than the margin, the insurance fund covers the loss of the position. The contract insurance fund comes from the balance funds generated by the forced closing of contracts. When the position is forced to close, the order is placed at the bankruptcy price to make a match in the market. If the actual transaction price is better than the bankruptcy price, the balance generated goes into the insurance fund.
In short, the Gate.io contract provides the user with an insurance fund, automatically provides the user with compensation for the loss of positions, and realizes zero allocation of contract losses.
Contract Function To Ensure Seamless Transactions
The Gate.io USDT perpetual contract hybrid margin borrowing function allows 0% interest on the collateral currency provided. Through this function, users can leverage the BTC in their spot account with 0% interest to borrow up to 100,000 USDT. Users do not need to sell their digital assets or transfer funds to the contract account. The margin will be automatically deducted from the spot account. It should be noted that the hybrid margin borrowing collateral provided cannot be transferred out. Hybrid margin borrowing is the value conversion of collateral to resist the risk of contract liquidation. No actual borrowing occurs, so there is no handling fee.
Gate.io’s perpetual contract supports a two-way position mode, that is, users can hold long and short positions on both sides of the same contract. The switching between one-way and two-way position modes is effective for all contracts settled by the user in one currency at the same time, provided that all contracts settled by the user in this currency have no positions and no pending orders.
The introduction of hybrid margin option, two-way positions and subsequent functions ensures actual benefits to users when trading contracts, while providing transactional security and stability. Compared with other contract products from competing platforms, Gate.io’s contracts have more diverse and innovative functions, reaffirming Gate.io’s commitment to innovation and consistent upgrades to the services it offers.
Millions Of Dollars In Rewards
Gate.io has set aside millions of dollars in USDTest for eligible users to try out the platform. Users will be able to use these rewards to offset contract and trading fees, losses and other capital expenses. Both new and current users will be able to benefit from these rewards which will be distributed in the form of USDT or BTC. Users can earn these rewards through certain designated activities on the contract trading platform.
Additionally, these rewards will take precedence over the user’s own funds and the profits obtained while executing trades using USDTest. For example: User A has 100 USDTest in his account, holds a BTC/USDT position through contract transactions, which uses 80 USDTest, and does not close the position. After the USDTest expires in 30 days, the unused balance, in this case 20 USDTest in the account will automatically be recovered and burned.
The current Gate.io contract platform features many new upgrades. In order to provide an enhanced trading experience to its users, Gate.io has launched a series of reward programmes for users, these activities will allow users the opportunity to earn a variety of rewards. The ‘Newcomer Tutorial’ will help users improve their skills as traders, users who participate in these activities stand a chance to win massive rewards by joining other contract traders on the platform.
Gate.io was founded in 2013 and has since grown to become a top 10 global cryptocurrency exchange by trading volume. Security remains the company’s highest priority and it has audit certificates available as proof of reserves. Its main products include spot, margin and contract trading in addition to derivatives, crypto loans, quantitative trading, initial exchange offering (IEO) investments and has a dedicated NFT marketplace.
Gate.io relies on stable technical support and a large array of listed coins and tokens. The more mainstream cryptocurrencies have increased trading volume and thus support contract trading with over 150 cryptocurrencies currently supported. The daily transaction volume of perpetual contracts regularly exceeds $2 billion with a large number of Gate.io users worldwide making use of the service. Because of this, Gate.io has invested a lot of money in security to ensure the safety of user assets used on the platform. The increased popularity of contract trading on Gate.io is just the tip of the iceberg as the platform regularly develops new products to cater for user demand such as the introduction of its dedicated NFT Magic Box marketplace, Startup IEO platform and new Copy Trading platform. Consistent innovation is a priority for Gate.io.
Head of Comms
- Diksha Sharma