Perpetuals Contract Specifications | Mark, Funding & PnL

PowerTrade Perpetuals are advanced crypto derivatives that let traders take long or short positions on digital assets (e.g., BTC, ETH) without holding the underlying tokens.

Overview

PowerTrade Perpetuals are advanced crypto derivatives that let traders take long or short positions on digital assets (e.g., BTC, ETH) without holding the underlying tokens. This section details the contract specifications, mark price logic, funding mechanism, and PnL calculation for PowerTrade’s perpetual futures.

📘 For a detailed explanation of how PowerTrade calculates funding rates, mark prices, and impact notional depth, see the full Funding Rate Methodology page.

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Introduction to Perpetuals

Perpetual futures are margin-based trading instruments that track the price of an underlying asset without an expiry date.

Long Position

Traders open a long position if they expect the asset price to rise. Profit = (Mark Price – Entry Price) × Position Size.

Short Position

Traders open a short position if they expect the asset price to fall. Profit = (Entry Price – Mark Price) × Position Size.

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Difference Between Perpetuals and Term Futures

Unlike traditional term futures, PowerTrade Perpetuals have no expiry date. They automatically roll over and remain open indefinitely. Traders gain or lose depending on price movements and periodic funding payments, which keep contract prices close to the underlying spot market.

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BTC/USD Perpetual Futures Specifications

Parameter	Description
Underlying Index	BTC-USD-INDEX as published by PowerTrade
Contract Size	1 Contract = 1 BTC
Minimum Tick Size	0.50
Minimum Quantity Step	0.0001
Initial Margin	20%
Maintenance Margin	Portfolio Margined (SPAN methodology)
Funding Currency	USD
Settlement Frequency	Every 1 hour
PnL Currency	USD

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Mark Price Calculation

PowerTrade uses a Mark Price to fairly determine unrealized PnL and trigger liquidations. It is derived from real-time market data and a short-term exponential moving average to smooth volatility.

Reference Price = Last traded price or manually set price.

Market Price = Reference Price if it falls between the best bid and best ask; otherwise: - Use best bid if Reference < best bid - Use best ask if Reference > best ask

Mark Price = Index Price + EMA(Market Price - Index Price)

The Exponential Moving Average (EMA) is calculated over 15 seconds to ensure price stability.

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Funding Rate & Swap Logic

Funding payments keep perpetual prices aligned with the spot market. They are exchanged between long and short traders once per hour based on the calculated Swap Rate.

Formula

Swap Rate = Premium Rate + Differential Interest Rate

Premium Rate

MIS = (Mark Price - Index Price) / Index Price Premium Rate = Max(0.05%, MIS) + Min(-0.05%, MIS)

Differential Interest Rate

Differential Interest Rate = Interest(USD) - Interest(BTC)

(Currently set to 0.)

Interpretation:

• If Swap Rate > 0, longs pay shorts.

• If Swap Rate < 0, shorts pay longs.

The swap is accrued continuously in unrealized PnL and settled hourly between counterparties.

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Funding Settlement Change (Q1 2026)

As part of PowerTrade’s new funding model rollout:

• Funding will only apply to open positions at settlement time.

• Positions closed before the hourly funding timestamp will not pay or receive funding.

This change aligns PowerTrade’s logic with Bybit’s settlement system and creates a fairer, more predictable experience for traders.

📘 Learn more in our Funding Rate Methodology.

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Frequency of Funding Calculation

Funding is computed continuously but applied every hour. Because the Swap Rate is expressed as a daily percentage, each second’s rate is divided by 86,400 (seconds in a day) for precise accrual.

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Profit & Loss (PnL)

Profit or Loss (P&L) for an open position is determined using the Mark Price and Entry Price.

Long Position

P&L = Position Size × (Mark Price – Entry Price) + settled funding

Short Position

P&L = Position Size × (Entry Price – Mark Price) + settled funding

PnL becomes realized once the position is closed.

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Liquidation Logic

If the Account Balance + P&L ≤ Maintenance Margin, the system initiates liquidation:

1. Cancel all open orders.

2. If balance remains below requirement, positions are force-closed at market to restore margin.

Insurance & Auto-Deleveraging (ADL)

• Insurance Fund: Covers losses if a trader’s account goes negative.

• Auto-Deleveraging: If the insurance fund is insufficient, profitable counterparties’ positions are reduced proportionally based on leverage and PnL priority.

Priority formula:

Priority = PnL% × Effective Leverage (if PnL% > 0) Priority = PnL% / Effective Leverage (if PnL% < 0)

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ETH/USD Perpetual Futures Specifications

Parameter	Description
Underlying Index	ETH-USD-INDEX as published by PowerTrade
Contract Size	1 Contract = 1 ETH
Minimum Tick Size	0.05
Minimum Quantity Step	0.001
Initial Margin	20%
Maintenance Margin	Portfolio Margined (SPAN methodology)
Funding Currency	USD
Settlement Frequency	Every 1 hour
PnL Currency	USD

Mark price, funding logic, and liquidation rules follow the same structure as BTC perpetuals.

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Transparency & Reproducibility

All PowerTrade perpetual data — including mark prices, index prices, and historical funding rates — can be independently verified using published APIs and historical data.

For a full explanation of PowerTrade’s hourly funding rate mechanism, impact margin notional tiers, and reproducibility guide, visit the 👉 PowerTrade Funding Rate Methodology.

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PowerTrade — Transparent, fair, and data-driven crypto derivatives.

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