Traditional Asset Perpetual Futures Overview

[Estimated Reading Time: 3 mins]

Bitget's traditional asset perpetual futures use USDT as both the quote currency and the settlement currency. In traditional markets, there are closing periods, and trading is not available 24/7. To ensure users can trade 24/7, we have made certain adjustments to the index price and mark price. During traditional market closure periods, special mechanisms are adopted to support the normal operation of the futures market.

Price index

Bitget connects to third‑party data providers to obtain prices for the underlying assets, which are then used for calculating the futures index price. Two calculation modes are adopted for different trading sessions:

1. Regular trading hours in the traditional market

• Similar to regular futures, the index price is derived from third‑party data sources using a weighted average calculation, and is updated every 500 ms.

2. Non‑trading hours in the traditional market

• During this period, the traditional market is closed, so no new market prices are generated. However, the last closing price is still considered the last reasonable market quote. As a result, the index price will remain equal to the value calculated from the last available market price.

Mark Price

During regular trading hours in the traditional market, the standard mode is used to calculate the mark price. During non-trading hours, such as weekends, non-standard trading days, and daily market maintenance periods, the mark price changes along with the latest traded price, in order to provide relatively fair price discovery while the traditional market is closed. Two mark price calculation modes are used:

1. Regular trading hours in the traditional market

• Standard mode, same as regular perpetual futures.

• Mark price = Median (Price 1, Price 2, Price 3). For details, refer to Mark price calculation.

2. Non-trading hours in the traditional market

• EWMA smoothing mode. During daily maintenance periods and weekends, the latest market price is processed using an Exponentially Weighted Moving Average (EWMA) to obtain the mark price, in order to prevent sharp price fluctuations and ensure price continuity during non-trading hours.

Index Price and Market Price Deviation Constraint

Since the underlying assets we trade are from traditional markets, in order to ensure that margin prices remain reasonable and do not deviate from traditional market pricing, we apply certain constraints to the mark price in the futures market. The constraint rule is:

• Actual mark price = clamp (mark price calculated by formula, index price × 0.97, index price × 1.03)

Bitget may determine what constitutes “regular trading hours” at its sole discretion. Bitget may adjust the time range or calculation method of any trading session at any time, including moving the start and/or end time earlier or later.

Impact on other mechanism

FAQs

1. What are Bitget’s traditional asset perpetual futures?

Bitget’s traditional asset perpetual futures are perpetual contract products that use USDT as both the quote currency and the settlement currency. The underlying assets come from traditional financial markets, such as stock indices and commodities.

2. How is the index price calculated during regular trading hours in the traditional market?

During regular trading hours, Bitget obtains prices of the underlying assets from third-party data providers and calculates the index price using a weighted average. The index price is updated once every 500 ms.

3. What is the mark price?

The mark price is used to calculate users’ unrealized PnL and liquidation price. Its main purpose is to reduce the impact of abnormal price fluctuations on futures trading.

4. How is the mark price calculated during regular trading hours in the traditional market?

During regular trading hours, the mark price is calculated using the standard mode: Mark price = Median (Price 1, Price 2, Price 3).

5. What is the deviation constraint rule for the mark price?

Actual mark price = clamp (mark price calculated by formula, index price × 0.97, index price × 1.03), meaning the mark price must remain within ±3% of the index price.

Disclaimer and Risk Warning

All trading tutorials provided by Bitget are for educational purposes only and should not be considered financial advice. The strategies and examples shared are for illustrative purposes and may not reflect actual market conditions. Cryptocurrency trading involves significant risks, including the potential loss of your funds. Past performance does not guarantee future results. Always conduct thorough research, understand the risks involved. Bitget is not responsible for any trading decisions made by users.