What are X-Perps? (UAE)
X-Perps (Expiry Perps) are now live in the United Arab Emirates (UAE), giving UAE traders access to a powerful derivatives product. Whether you're switching from another platform or exploring derivatives for the first time, this guide explains exactly what X-Perps are, how they work, and what you need to know before trading them on our platform.
Below you'll learn:
What X-Perps are and how they work
How X-Perps differ from spot trading
Key concepts every trader needs to understand before opening a position
How to get started on our platform
What are X-Perps on OKX?
X-Perps (Expiry Perps) are leveraged derivatives contracts that let you trade on the price movements of crypto assets without owning the underlying coins. They're available exclusively to eligible traders, residing in the UAE jurisdictions through OKX Middle East Fintech FZE, authorised and regulated by the Virtual Assets Regulatory Authority (VARA).
With X-Perps you can go long if you expect the price of an asset to rise, or go short if you expect it to fall. Positions can be opened and closed at any time during market hours, giving you flexibility to instantly act whenever the market moves.
X-Perps use a funding rate mechanism to keep the contract price closely aligned with the underlying spot market. They also have a fixed settlement date five years from the date the contract was issued, at which point open positions are cash settled. For the vast majority of traders who open and close positions within days, weeks, or months, this settlement date has no practical effect on how X-Perps trade day to day.
X-Perps are leveraged instruments. This means both gains and losses are amplified relative to your margin. Losses can occur quickly and these products may not be suitable for all investors. All users that want to use OKX-Perps need to pass a mandatory appropriateness test to confirm whether the product suits their investment appetite.
How X-Perps differ from spot trading?
In spot trading, you buy or sell the actual asset. If you buy BTC on the spot market, you own BTC. Your gain or loss is determined solely by the change in BTC's price, and you can only profit if the price goes up. X-Perps work differently. You're trading a contract linked to an asset's price rather than the asset itself. This means:
You can go long or short, giving you the ability to trade in both directions
You can use leverage of up to 5x or 50x for qualified investors, meaning a smaller amount of margin controls a larger position
You don't need to own the underlying asset to open a position
Both gains and losses are amplified by the leverage you apply
Because of leverage, a relatively small price move can have a significant impact on your position, in either direction. Applying decent risk management is very important when trading X-Perps.
How X-Perps differ from standard perpetuals?
Feature | Standard Perpetuals | X-Perps |
|---|---|---|
Underlying asset | Spot price of a crypto asset | Index price of a crypto asset |
What you are trading | Price direction (long/short) | Price direction (long/short) |
Funding rate | Continuous, every 8 hours | Continuous, every 8 hours |
Price anchored to spot | Yes, via funding rate | Yes, via funding rate |
Expiry date | None, runs indefinitely | Fixed, 60 months (1,827 days) from issuance |
Settlement | Closed by trader or liquidation | Cash settlement in users chosen margin currency at 60-month expiry |
Margin mode | Varies by venue | Selected margin or isolated margin |
Forced rollover | Never | None, until expiry |
Leverage | Varies by venue | Up to 50x (retail lite) |
Day-to-day trading feel | Standard perp UX | Identical to standard perp UX |
What are the key concepts that I should understand?
Leverage
Leverage allows you to control a position that is larger than the margin you deposit. On X-Perps, you can trade with up to 50x leverage.
For example, with 5x leverage and 1,000 USDC in margin, you control a position worth 10,000 USDC. If the market moves 5% in your favour, your gain in the position is 500 USDC; a 50% return on your margin. However, if the market moves 5% against you, your loss is also 500 USDC; a 50% decrease in your margin.
Leverage amplifies both gains and losses equally. The higher the leverage, the faster losses can accumulate if the market moves against your position.
Note: if you are new to leveraged trading, start with lower leverage settings to give your position more room to move before reaching your margin threshold.
Margin
Margin is the collateral to open and maintain a position. X-Perps offer powerful margining capabilities including multi-asset margin. You can use BTC, ETH, SOL, USDC, USDG, or DOGE as margin, putting your existing crypto holdings to work without having to sell them.
Your margin level determines how much room your position has before it approaches liquidation. Monitoring your margin level is one of the most important habits of active traders. When trading X-Perps on our platform, you have the option to choose between two different margin modes:
Isolated: Each position gets its own fixed collateral. Limits losses to that position only.
Selected: Margin and PnL are shared across positions. You may lose all your positions if liquidation occurs.
The funding rate
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.
When the contract price is trading above the spot price, the funding rate is typically positive. In this case, long positions pay short positions.
When the contract price is trading below the spot price, the funding rate is typically negative. Short positions pay long positions.
The funding rate can add to, or reduce your net result depending on your position direction and how long you hold. If you hold a position across multiple funding intervals, the cumulative effect of funding payments can be meaningful.
Liquidation
If your margin falls below the required maintenance level, your position may be liquidated. This means your position closes automatically by the platform to prevent your account from going into a negative balance.
Liquidation can happen faster than expected during periods of high volatility, or if you're using high leverage. Setting a stop-loss before opening a position is one of the most effective ways to manage your risk.
Mark price
X-Perps use a mark price, a calculated fair value price, for liquidation checks and unrealised PnL calculations. The mark price differs from the last traded price and is designed to reduce the impact of short-term price spikes on liquidation events.
Your unrealised PnL is calculated using the mark price, not the last traded price. This means your displayed PnL may differ slightly from what you'd expect based on the chart price alone.
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.
What markets are available?
At launch, X-Perps are available on our platform for the following assets:
BTC, ETH, SOL, DOGE, XRP, ADA, LTC, SUI, PEPE, PUMP, USD
More markets will be added over time. Check the X-Perps trading page for the latest available markets.
How does X-Perps compare to spot trading?
Spot trading | X-Perps | |
|---|---|---|
Own the asset | Yes | No |
Go long | Yes | Yes |
Go short | No | Yes |
Leverage | No | Up to 50x |
Funding rate | No | Yes, every 8 hours |
Settlement | Immediate | 5-year fixed expiry |
Multi-asset margin | No | Yes |
Who can trade X-Perps?
X-Perps are available to eligible traders in the UAE region. To access X-Perps you must:
Have a verified OKX account with completed identity verification
Complete a suitability assessment, which we use to ensure you understand the risks involved in leveraged derivatives trading
Be 18+ and reside in the UAE region
Both retail and professional clients can trade X-Perps.
How do I access X-Perps?
On the app
Open the OKX app and tap the menu
Tap X-Perps: this takes you to Exchange mode
Complete the suitability assessment
Once approved, X-Perps are accessible from the menu at any time
On the web
Log in to your OKX account
Select Trade in the navigation bar
Select Unlock X-Perps
Complete the suitability assessment
Once approved, X-Perps are accessible from the Trade menu at any time
Note: want to try X-Perps before trading with real funds? We offer demo trading for X-Perps in the UAE. This is a risk-free way to get familiar with the interface, test your strategy, and understand how leverage and margin work before opening a position in the live environment.
Get started with X-Perps
X-Perps are available now for eligible traders on OKX that reside in the UAE. Complete your suitability assessment and start trading. Want to explore before you trade? Try demo trading on our platform, available now for X-Perps in the UAE.