> For the complete documentation index, see [llms.txt](https://support.power.trade/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://support.power.trade/trading/perpetuals/perpetuals-contract-specifications/ar-perpetual-futures-on-powertrade-funding-rate-contract-specs-and-trading-guide.md). # AR Perpetual Futures on PowerTrade – Funding Rate, Contract Specs & Trading Guide Trade **AR perpetual futures** on [**PowerTrade**](https://power.trade) with **zero fees**, **hourly settlements**, and **transparent funding rates** based on the **CoinGecko AR/USDC Index**.\ AR perpetuals give traders the flexibility to **speculate or hedge Arweave price movements** with **leverage**, **multi-collateral margining**, and **benchmark-aligned funding**. 👉 **Start trading AR Perpetual Futures now on** [**PowerTrade**](https://power.trade) **or its decentralized counterpart** [**Polaris**](https://polaris.trade)**.** *** ### What Are AR Perpetual Futures? **AR perpetual futures** are leveraged derivatives that allow traders to go **long or short on Arweave (AR)** without owning the underlying token. * **Long AR Perpetual:** Profit when AR price rises. * **Short AR Perpetual:** Profit when AR price falls. Unlike traditional futures, **perpetuals never expire**. Instead, they use **funding payments** exchanged between longs and shorts to maintain alignment with the spot AR market price. *** ### AR Perpetual Contract Specifications | Parameter | Details | | ------------------------ | ---------------------------- | | **Instrument Name** | AR-PERPETUAL | | **Underlying Asset** | Arweave (AR) | | **Settlement Currency** | USDC | | **Leverage** | Up to 100× | | **Settlement Frequency** | Hourly | | **Trading Fees** | 0% maker / taker | | **Collateral Options** | BTC, ETH, and stablecoins | | **Margin Mode** | Isolated or Portfolio Margin | PowerTrade perpetuals are built for **speed, transparency, and flexibility**, giving traders deep liquidity, fair funding, and cross-collateral margining options. *** ### AR Perpetual Funding Rate Explained The **PowerTrade AR funding rate** ensures AR perpetual prices stay aligned with the **CoinGecko AR/USDC Index**, reflecting the true market value of Arweave. **Funding Rate Formula:** ``` F = P + clamp(I – P, +0.05%, –0.05%) ``` Where: * **P (Premium Index):** The difference between market and index prices. * **I (Interest Rate):** 0.01% per 8 hours (applied hourly). * **Clamp:** Restricts adjustment to ±0.05% to prevent extreme spikes. Funding is **applied hourly** and affects only positions open at settlement.\ Traders who close positions before funding time **don’t pay funding fees**. 👉 **Learn more:** PowerTrade Funding Rate Calculation Guide *** ### AR/USDC Index Price Methodology The **AR/USDC Index** tracks Arweave’s fair market value in USDC, using real-time data aggregated from multiple exchanges through **CoinGecko’s composite feed**. 📊 **Reference Source:** [Arweave (AR) on CoinGecko](https://www.coingecko.com/en/coins/arweave) #### Purpose of the Index The index ensures **mark prices and liquidation levels** reflect the **global consensus price** for AR, protecting traders from exchange-specific volatility or manipulation. #### Index Construction The CoinGecko composite index aggregates spot AR/USDC (or equivalent) prices across top global exchanges. Each venue’s contribution is weighted by: * Trading volume and liquidity depth * Exchange reliability and uptime * Consistency with the global average Outlier and stale data are automatically filtered out.\ PowerTrade then applies this validated CoinGecko feed to derive mark and index prices used across the platform. #### Fallback Mechanism If CoinGecko’s feed is temporarily unavailable, PowerTrade switches to an **internal pre-market index** based on **AR perpetual order book bid/ask data**, ensuring uninterrupted pricing and liquidation accuracy. *** ### Mark Price and Liquidation Logic PowerTrade’s **mark price mechanism** smooths volatility and ensures fair PnL and liquidation calculations. ``` Mark Price = Index Price + EMA(Market Price – Index Price) ``` * The **EMA (Exponential Moving Average)**, calculated over 15 seconds, filters out short-term noise. * This reduces unnecessary liquidations and keeps pricing consistent during volatile periods. **PnL Formulas:** * **Long AR:** `PnL = Position Size × (Mark Price – Entry Price)` * **Short AR:** `PnL = Position Size × (Entry Price – Mark Price)` **Liquidation Trigger:**\ `Account Balance + Unrealized PnL ≤ Maintenance Margin` When triggered: 1. Open orders are canceled. 2. Positions close at market. 3. The **insurance fund** and **auto-deleveraging (ADL)** mechanisms maintain system stability. *** ### Why Trade AR Perpetual Futures on PowerTrade? ✅ **0% Trading Fees** – Trade with zero maker or taker fees.\ ✅ **Hourly Funding** – More accurate than traditional 8-hour cycles.\ ✅ **Benchmark-Aligned Pricing** – CoinGecko index ensures fair valuation.\ ✅ **Multi-Collateral Margining** – Use BTC, ETH, or stablecoins.\ ✅ **Portfolio Margin** – Cross-margin AR with other perpetuals and options.\ ✅ **Trade Anywhere** – On [PowerTrade (CEX)](https://power.trade) or [Polaris (DEX)](https://polaris.trade). PowerTrade’s AR perpetuals combine **fair funding**, **transparent pricing**, and **deep liquidity**, making them ideal for traders of all levels. *** ### Example AR Perpetual Use Cases 1️⃣ **Hedge AR Spot Exposure**\ Protect your Arweave holdings by shorting AR perpetuals. 2️⃣ **Leverage Trading**\ Amplify exposure to AR price moves with leverage. 3️⃣ **Funding Rate Arbitrage**\ Capture yield opportunities from funding differentials. 4️⃣ **Volatility Trading**\ Trade short-term AR price swings using 0% fee perpetuals. *** ### Funding Transparency and Reproducibility PowerTrade stands out as a **fully transparent perpetual exchange** — where every funding rate can be **independently verified** from public order book and CoinGecko index data.\ This ensures that all traders trade on equal, transparent terms. 👉 **Read the methodology:** PowerTrade Perpetual Funding Rate Methodology *** ### How to Start Trading AR Perpetuals 1. **Create an account** on [PowerTrade](https://power.trade) or [Polaris](https://polaris.trade). 2. **Deposit collateral** – USDC, BTC, or ETH. 3. **Select AR-PERPETUAL** in the markets tab. 4. **Start trading instantly** with 0% fees and hourly funding transparency. *** ### Conclusion PowerTrade’s **AR Perpetual Futures** deliver **maximum transparency, capital efficiency, and zero trading fees**, allowing traders to speculate or hedge Arweave price movements with precision.\ Whether you’re **hedging**, **arbitraging**, or **trading volatility**, **PowerTrade** and **Polaris** offer the most advanced and transparent AR perpetual markets in crypto. 👉 **Start trading AR perpetuals today on** [**PowerTrade**](https://power.trade) **or** [**Polaris**](https://polaris.trade)**.** --- # Agent Instructions This documentation is published with GitBook. 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