USDT/USDC Futures Introduction | KuCoin (2024)

KuCoin's USDT-margined futures differ from inverse contracts. They are futures quoted and settled in USDT/USDC. Both USDT and USDC are stablecoins pegged to the value of the US dollar.

The biggest advantage of USDT-margined futures is that they are settled in US dollars, meaning you can easily calculate your profits in fiat currency. For example, when you earn a profit of 1000 USDT, you can easily estimate that this profit is almost equivalent to 1000 US dollars - because the value of 1 USDT is almost equal to 1 US dollar.

Features of USDT-Margined Futures:

1. Settled in USDⓈ: Futures are priced and settled in USDT or USDC.

2. Expiration: Perpetual contracts have no specific expiration date, while quarterly delivery contracts expire on the last Friday of the last month of the quarter.

3. Clear Quantity Rules: Each USDT-margined futures contract specifies a certain amount of the underlying asset, i.e., the contract multiplier. For example, in perpetual contracts like BTC/USDT, ETH/USDT, and ARB/USDT, the contract multipliers are 0.001, 0.01, and 1, respectively. This means that each BTC/USDT contract equals 0.001 BTC, each ETH/USDT contract equals 0.01 ETH, and each ARB/USDT contract equals 1 ARB.

4. Leverage Multiplier: USDT-margined contracts of different underlying assets support different maximum leverage multipliers.

5. Funding Fee: To balance the price deviation between spot and futures trading markets, USDT-margined perpetual contracts incur funding fees based on market price conditions and long/short position holdings. These fees are swapped and changed among traders every eight hours.

Notes:

The contract orders must be an integer multiple of the contract multiplier. If ordering by amount, you can open the maximum number of contracts possible for the specified amount. If ordering by quantity, it must also be an integer multiple of the contract quantity.