What is USDT perpetual contract?

1. What is USDT perpetual contract? How does it differ with Inverse perpetual contract? 

USDT perpetual contract is a linear contract. The margin used for a linear contract is USDT. On the other hand, an inverse contract means if a trader would like to trade BTC/ETH/XRP/EOS contract, the underlying cryptocurrency has to be used as the margin to trade the respective contract. As compared to Inverse perpetual contract, USDT perpetual contract consists of the following: 

- The calculation of margin and P&L of USDT perpetual contract is more direct as compared to Inverse perpetual contract. When trading 1 BTC and the price moves by 100 USDT, the profit/loss of the trader will be 100 USDT. The P&L chart of the USDT contracts will be a linear curve.

- Inverse perpetual contract is traded based on the underlying cryptocurrency. Traders need to hold a much volatile BTC/ETH/EOS/XRP as margin. Hence, even if traders choose not to trade, holding the cryptocurrency itself involves risks. On the other hand, USDT perpetual contract uses stablecoin as margin and thus, traders do not have to hedge their position to avoid the risk of holding the cryptocurrency. 

2. How to deposit USDT? 

Traders can navigate to My Assets page and click on USDT deposit. Bybit accepts USDT deposits from Omni based on the Bitcoin network, TRC20 and ERC20 from the Ethereum network. The arrival time of the deposit is generally about ten minutes. Traders can also use the asset exchange function to exchange other cryptocurrencies such as BTC or ETH to USDT for trading. For specific steps on how to make a deposit, please click here.

3. What is the highest leverage supported by USDT contracts? Does it support hedging? 

Different USDT contracts have different highest leverage, please refer to Risk Limit (USDT Contract).

Yes, USDT contracts support hedging. Traders can use different leverage on long and short position so as to allow more flexibility in managing long-term and short-term speculative position. 

4. Is there a fee applicable when closing a hedged position?

Currently, Bybit does not support internal matching of hedging positions. When a hedged position is closed by a trader, the trading fee is determined on whether it is a taker or a maker order.

5. Will a hedged position be subjected to liquidation? 

Under isolated mode, the hedged positions are independent and not related, hence the positions can be liquidated individually. Under cross mode, fully hedged positions will never be liquidated. When the positions are not fully hedged, only the excess contracts that are not fully hedged may be subjected to liquidation, and the positions that are hedged will not be affected. 

6. Will a hedged position be subjected to Auto-deleveraging (ADL)? 

The same logic for liquidation applies for ADL. Under isolated margin, the individual position has the risk of being ADL. Under cross margin, fully hedged positions will not be chosen for ADL. When the positions are not fully hedged, only the excess contracts that are not fully hedged may be subjected to ADL, and the positions that are hedged will not be affected. The ADL ranking lights indicate the risk of being chosen for ADL where each light lit represents a 20% increment in ADL ranking. When the positions are hedged, the system will compare both the Buy/Long and Sell/Short ADL ranking and reflects the higher ranking.

7. Is it possible to switch back and forth between isolated margin mode and cross margin mode?

When a trader switches a position from isolated margin mode to cross margin mode, if he holds long and short positions of the contract simultaneously, both positions will be switched to cross margin mode. When a trader tries to switch a position from cross margin mode to isolated margin mode, he can only do so when he holds either a long or short position or no position. If he holds both long and short positions of the contract simultaneously, cross margin mode cannot be switched to isolated margin mode.

8. What are the differences between Auto Margin Replenishment (AMR) and Cross margin mode?

Unlike cross margin mode which uses all the available balance to calculate the liquidation price, traders will be notified when AMR is triggered and this allows traders to have time to better manage their position. 

However, under isolated margin mode, both long and short position remains independent and can be liquidated in both directions. 

9. What is Risk Limit? 

The concept of dynamic leverage is used for Bybit's Risk Limit. This means the larger the contract value traders hold, the lower the maximum leverage allowed. In other words, the initial margin requirement incrementally goes up by a fixed percentage at every specific increase in contract value level. Each trading pairs have its specific maintenance margin base rate and the margin requirements will increase or decrease accordingly as risk limit changes.

For more details, please refer to Risk Limit (USDT Contract)

10. Can I use unrealized profit to open new position or withdraw the unrealized profit？

No, under cross margin mode, the unrealized P&L can only be realized upon position closing. The unrealized profit will not increase the available balance, hence it cannot be utilized to open new position or make a withdrawal.

Unrealized profit will not be shared across different trading pairs, but only the same trading pairs under cross margin mode. For example, the unrealized profit from ETHUSDT cannot be used to support the BTCUSDT position losses. However the unrealized P&L of the same trading pair, such as BTCUSDT long and BTCUSDT short, will still be used to support each other under cross margin mode. 

11. Is the insurance fund of USDT contracts shared among all coins?

Unlike inverse contract which uses the underlying coin as settlement, all USDT contracts will use USDT as settlement. Hence, the USDT insurance fund is shared among all contracts. 

12. How to withdrawal USDT? Which method of withdrawal does Bybit support? 

Bybit supports withdrawal via ERC20, TRC 20 and do not support Omni. For the steps on how to make a withdrawal, please click here.

13. What is the maximum and minimum order quantity of different trading pairs?

To have a position size that is larger than the maximum order quantity, traders can achieve this by placing multiple orders.