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What are Coin-Margined features?
What are Coin-Margined features？
Coin-Margined features are contracts that are denominated in cryptocurrency. Coin-Margined features are also known as reverse contracts. In Coin-Margined features, the value of the contract is denominated in cryptocurrency, a form of contract that allows investors to participate in the market directly with cryptocurrency without having to buy coins as stablecoins and miss out on price increases.
Coin-Margined features can be divided into Coin-Margined Perpetual Contracts and Coin-Margined Delivery Contracts. The concept of the former is similar to that of U-Margined Perpetual Contracts, except that the value of Coin-Margined features is calculated in cryptocurrency, and both can be held indefinitely, but Coin-Margined Delivery Contracts are significantly different in terms of time.
A Coin-Margined delivery contract is a contract with a specific expiry date, which means that the user is required to deliver a specified amount of assets at a specific date in the future. The delivery date is usually pre-determined and on that date the contract holder must fulfill the delivery obligation according to the terms of the contract.
A cryptocurrency-denominated perpetual contract is a digital asset derivative product that allows the user to judge the ups and downs and choose to buy long or sell short contracts to gain from the increase/decrease of the price of the digital asset. This is similar to a spot market for a collateralised asset, which is close to the price of the underlying reference index, with the main mechanism for anchoring the spot price being the funding fee. Perpetual contracts have no delivery date and users can hold them all the time. Perpetual contracts are settled every 8 hours, and after each settlement, the realised profit and loss and unrealised profit and loss will be transferred to the balance of the user's account.
Features of Coin-Margined features
Coin-Margined features are denominated and settled in the underlying cryptocurrency, with no need to hold stablecoins as margin. All proceeds can be used for long-term capital accumulation.
In addition, as the price continues to rise, the value of the collateral increases. In the long run, this is an excellent way to boost cryptocurrency holdings.
There is no need to convert your holdings to USDT in order to hedge your position in the contract market, so there is also no need to sell any cryptocurrency at a discounted price.
To implement a hedge, simply take a short position in any cryptocurrency-denominated quarterly futures contract. If the price of the underlying asset falls, the gain on the contract position will be enough to offset the loss of the portfolio.
If you would like to learn more, please refer to ：
Difference between USD-Margined features and Coin-Margined feature