TradFi contracts refer to perpetual contracts listed on the platform with underlying assets such as stocks, stock indices, precious metals, energy, and other commodities. Like regular perpetual contracts whose underlying assets are crypto, these contracts use the same underlying perpetual contract mechanism. To ensure the robustness of TradFi contracts, the platform applies special handling to certain details.
Index Price
Index calculation rules for TradFi contracts:https://www.gate.com/zh/help/futures/futures-logic/22069
The platform purchases price subscription services from multiple traditional financial market data sources, such as itick, massive, infoway, and others, and uses them as index constituents for TradFi contracts. This ensures that the spot index of each contract can effectively track the real-time fair market price of the underlying asset.
During holidays and market closures, traditional financial quote sources continue to participate in index calculation as index constituents, with their prices remaining at the closing price of the previous trading day. If the index involves currency conversion, such as Korean stocks quoted in USD, the quoted price of the index constituent may fluctuate slightly during holidays due to movements in the exchange rate itself.
To ensure that the spot index during holidays can promptly reflect real market conditions, the platform may, based on factors such as market trading activity, include quotes from crypto exchanges that are open for trading 24/7 as index constituents. This helps avoid high funding fee costs caused by delayed spot index quote updates.
To ensure the robustness of the spot index for TradFi contracts, and considering that market price discrepancies for their underlying assets are generally lower than those for crypto, the platform applies stricter filtering thresholds for abnormal constituent prices during the median-based outlier removal process. For example, the correction threshold may be 1%, and the removal threshold may be 3%. For regular crypto contracts, these thresholds are generally 2% and 8%.
Mark Price
Mark price calculation rules for TradFi contracts: https://www.gate.com/zh/help/futures/futures-logic/22067
To improve the robustness of the mark price for TradFi contracts, the platform applies the following special handling:
- The deviation between the mark price and the spot index for TradFi contracts is limited to within 3%, preventing unreasonable mark price fluctuations caused by insufficient on-platform contract liquidity.
- Since the price volatility of the underlying assets of TradFi contracts is generally lower than that of crypto, the platform applies a stricter trigger threshold for the mark price spike protection mechanism for TradFi contracts than for crypto contracts, in order to filter out extreme abnormal conditions.
Funding Fee
Funding fee rules for TradFi contracts: https://www.gate.com/zh/help/futures/futures-logic/27569
To avoid high funding fee costs caused by insufficient on-platform liquidity, the platform applies the following special handling to TradFi contracts:
- Lower upper and lower funding rate limits. Based on factors such as the type of underlying asset and whether the asset is also listed on other crypto exchanges, the platform sets different funding rate limits for different TradFi contracts, such as 0.02%, 0.5%, 1%, and so on. For regular crypto contracts, the upper and lower funding rate limits are 2%.
- The funding settlement cycle for TradFi contracts will not automatically be adjusted to 1H simply because the funding rate reaches the upper or lower limit at settlement. The funding calculation cycle for regular TradFi contracts is fixed at 8H or 4H, and the platform will manually adjust it based on market volatility.
Margin Requirements
The margin requirements for TradFi contracts are exactly the same as those for crypto contracts, both following the risk limit rules: https://www.gate.com/zh/help/futures/futures-logic/22162
The platform will provide trading services with higher leverage multiples wherever possible, based on the liquidity of the contract itself and the volatility of the underlying asset.
Liquidation, ADL, and Insurance Fund
The liquidation rules, ADL rules, and insurance fund rules for TradFi contracts are exactly the same as those for crypto contracts, with no special handling.
ADL rules: https://www.gate.com/zh/help/futures/futures-logic/22082
Insurance fund: https://www.gate.com/zh/help/futures/futures-logic/22081
Corporate Actions
When the underlying company undergoes a stock split or reverse stock split, the platform will scale positions according to the split ratio. For details, see: https://www.gate.com/zh/help/futures/futures-logic/100541
When the underlying company distributes dividends, the platform will settle dividend payments between long and short positions. For details, see: https://www.gate.com/zh/help/futures/futures-logic/101544
Disclaimer
The content provided herein is for reference and educational purposes only and does not constitute any financial, investment, trading, or legal advice, nor does it constitute an offer or solicitation to buy or sell any digital assets. Gate makes no express or implied representations or warranties regarding the accuracy, completeness, or timeliness of the information contained herein. Product features, interfaces, rules, and fee structures may be updated or adjusted at any time. Please refer to the latest announcements and the actual information displayed on the Gate platform for the most accurate details.
Digital asset investments involve significant risk, and prices may fluctuate substantially. You may lose the entire amount of your investment. Please make decisions cautiously based on your own financial situation and risk tolerance after fully understanding the associated risks. If necessary, you are advised to consult an independent professional financial or legal advisor.
For more information about potential risks, please refer to Gate's Risk Disclosure and User Agreement.
