Simple X-Perps FAQ

What are perpetual futures?

X-Perps (Expiry Perps) are leveraged derivatives contracts that let you trade on the price movements of crypto assets, such as BTC or ETH, without owning the underlying coins.X-Perps differ from buying crypto outright (spot) in two main ways:

• Trade in both directions: go long if you expect the price to rise, or short if you expect it to fall.

• Trade with leverage: a smaller amount of margin controls a larger position, amplifying both gains and losses.

A funding rate keeps the X-Perps price closely aligned with the spot price, and there is no monthly contract to roll over — you can hold a position for as long as you maintain enough margin.Because of leverage, derivatives trading carries more risk than spot trading and losses can occur quickly. Only trade with funds you can afford to lose.

What does it mean to go long or go short?

Going long or short is simply the price direction you are trading:

• Go long (Buy): you expect the price to rise. You profit if it rises and lose if it falls.

• Go short (Sell): you expect the price to fall. You profit if it falls and lose if it rises.

The ability to go short is the key difference from buying spot — it lets you potentially profit, or hedge, when prices are falling. For example, opening a long on BTC at 76,000 USD with 10x leverage returns +50% on your margin if BTC rises 5%, and −50% if BTC falls 5%. A short position is the mirror image.You can choose a direction by selecting Open Long or Open Short, and you hold either a long or a short on a given pair at one time (one-way mode).

What is the funding rate for X-Perps?

The funding rate is a periodic payment exchanged between traders holding long and short positions. It's not a fee charged by us, it's a transfer between traders. On X-Perps, the funding rate is settled every 8 hours. Its purpose is to keep the X-Perps contract price anchored to the underlying spot market price.

• Positive funding rate: long positions pay short positions

• Negative funding rate: short positions pay long positions

The amount is calculated as funding fee = position value × funding rate, and it applies only if you're holding a position at the 8-hour funding time. The longer you hold, the more these payments add up, so factor funding into your plan. You can view the current funding rate on the perp's Insights option, and the funding accumulated on your position in the position details.

What is the expiration date and settlement?

X-Perps have a fixed settlement date, five years from the date the contract was issued. At settlement, all open positions are cash settled at the settlement price. For traders who close their positions before the settlement date, which is the case for the vast majority of active traders, settlement has no direct impact on their trading.

How do margin and leverage work in derivatives trading?

Margin is the collateral you put up to open and maintain a position. You can use your USD, USDC, or USDG balance as margin to open X-pers positions.

Leverage is how much larger your position is than your margin. At 10x leverage, for example, 1,000 USDC of margin controls a 10,000 USDC position. If the market moves 5% in your favour, you gain 500 USDC (+50% on your margin); if it moves 5% against you, you lose 500 USDC (−50% on your margin). Leverage amplifies gains and losses equally.

A few points specific to Simple mode X-Perps:

• Isolated margin: each position has its own dedicated collateral, so a loss on one position cannot drain the rest of your balance. The most you can lose on a position is the margin assigned to it, plus fees.

• Setting leverage: you set leverage with a slider when opening a position, and the app shows your estimated liquidation price as you adjust it.

The higher the leverage, the larger the swings and the closer your liquidation price sits to the current price. If you're new to leveraged trading, start with lower leverage to give your position more room to move.

What is liquidation?

Liquidation is when the system automatically closes your position because the market has moved against you and your margin has fallen to the minimum required (maintenance) level. This protects your account from going into a negative balance.

• Liquidation is assessed using the mark price — a smoothed "fair value" price — rather than the last traded price, so short-term spikes are less likely to trigger it.

• Each position displays an estimated liquidation price and a margin-ratio health indicator that's colour-coded: green (healthy), yellow (caution), and red (at risk). At-risk positions also trigger a warning.

• Higher leverage and high volatility make liquidation more likely and move the liquidation price closer to the current price.

To reduce the risk of liquidation, you can use lower leverage, set a stop-loss, add margin when a position approaches its liquidation price, or close part or all of the position. Our risk system is designed to prevent a negative balance, but you can still lose all of the margin in a position, so manage your risk actively.

What is Take profit/Stop loss?

Take Profit and Stop Loss is automatic orders you attach to a position so it closes on its own, without you having to watch the market.

• Take Profit (TP): closes your position automatically when the price moves in your favour to a level you set, locking in profit.

• Stop Loss (SL): closes your position automatically when the price moves against you to a level you set, capping your loss. A stop-loss is one of the most effective ways to manage risk.

• Both TP and SL are optional. You can set one or both when opening a position, or add and edit them later from the position screen.

• You enter them as a percentage price change, and the app shows the resulting trigger price and your estimated profit or loss.

• They trigger on the last price and close your entire position at market price.

• Whichever level the price reaches first closes the position; the other order is then cancelled automatically.

How do I manage my positions?

You can view and manage open positions under Portfolio > Perpetuals, or on a perp's detail page under the Position tab. Each position shows your unrealised PnL, margin-ratio health, liquidation price, average entry price, leverage, position size, and accumulated funding.

Select Modify to:

• Increase position: add to your position at the same leverage (any TP/SL adjusts to the new position size).

• Adjust margin: add margin to move your liquidation price further away (safer), or reduce margin to free up funds (this moves liquidation closer). The app will show your new liquidation price before you confirm.

• Adjust TP/SL: add, edit, or remove your take-profit and stop-loss.

Select Close position to close at the current market price. Simple Perps closes positions in full — partial close is not available in this release. You'll see your PnL and ROI before confirming, and any linked TP/SL are cancelled automatically.

To stay on top of your positions, keep your margin ratio out of the red, use TP/SL so your plan runs while you are away, and watch the funding rate if you hold for a long time. We also send push and email alerts for key events such as a position opening or closing, a TP or SL being hit, and liquidation risk.

Positions opened in Simple mode can also be viewed and managed in Advanced (Exchange) mode while some position types, such as hedge mode or cross margin, must be managed in Advanced mode.