> 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/axl-perpetual-futures-on-powertrade-funding-rate-contract-specs-and-trading-guide.md).

# AXL Perpetual Futures on PowerTrade – Funding Rate, Contract Specs & Trading Guide

Trade **AXL perpetual futures** on [**PowerTrade**](https://power.trade) with **zero fees**, **hourly settlements**, and **benchmark-aligned funding rates** powered by the **CoinGecko AXL/USDC Index**.\
AXL perpetuals let traders **speculate or hedge Axelar price movements** with **leverage**, **multi-collateral margining**, and **transparent hourly funding**.

👉 **Start trading AXL Perpetual Futures now on** [**PowerTrade**](https://power.trade) **or its decentralized counterpart** [**Polaris**](https://polaris.trade)**.**

***

### What Are AXL Perpetual Futures?

**AXL perpetual futures** are leveraged derivatives that allow traders to take **long** or **short** positions on **Axelar (AXL)** without owning the underlying asset.

* **Long AXL Perpetual:** Profit when AXL’s price rises.
* **Short AXL Perpetual:** Profit when AXL’s price falls.

Unlike traditional dated futures, **AXL perpetuals never expire**. Instead, they use **hourly funding payments** between long and short traders to maintain alignment with AXL’s global spot market price.

***

### AXL Perpetual Contract Specifications

| Parameter                | Details                      |
| ------------------------ | ---------------------------- |
| **Instrument Name**      | AXL-PERPETUAL                |
| **Underlying Asset**     | Axelar (AXL)                 |
| **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 combine **zero-fee trading**, **multi-collateral flexibility**, and **institutional-grade performance**, built for both professional and retail traders.

***

### AXL Perpetual Funding Rate Explained

PowerTrade’s **AXL funding rate** ensures the perpetual contract price remains aligned with the **AXL/USDC Index**, sourced from [**CoinGecko**](https://www.coingecko.com/en/coins/axelar).

**Funding Rate Formula:**

```
F = P + clamp(I – P, +0.05%, –0.05%)
```

Where:

* **P (Premium Index):** Difference between market and index price.
* **I (Interest Rate):** 0.01% per 8 hours (applied hourly).
* **Clamp:** Restricts adjustments to ±0.05% to stabilize funding costs.

Funding is **applied hourly**, impacting only positions open at the settlement timestamp.\
Positions closed beforehand **incur no funding fees**.

👉 **Learn more:** PowerTrade Funding Rate Calculation Guide

***

### AXL/USDC Index Price Methodology

The **AXL/USDC Index Price** represents the fair global market value of Axelar (AXL) against USDC, calculated from aggregated spot market data through **CoinGecko’s composite exchange feed**.

📊 **Reference Source:** [Axelar (AXL) on CoinGecko](https://www.coingecko.com/en/coins/axelar)

#### Purpose of the Index

The index serves as the **reference rate** for AXL perpetual contracts — ensuring **mark prices** and **liquidation levels** mirror global AXL market conditions, not isolated exchange behavior.

This framework maintains **pricing integrity**, **transparency**, and **fairness** for all traders.

#### Index Construction

CoinGecko’s composite AXL index aggregates spot prices from top-tier exchanges and weights them by:

* 24-hour trading volume and liquidity depth
* Data reliability and uptime
* Consistency with the global average

Outlier and stale data are automatically excluded.\
PowerTrade integrates this validated feed to calculate **mark prices** and **funding rates** accurately.

#### Fallback Mechanism

If CoinGecko’s data feed becomes temporarily unavailable, PowerTrade switches to a **pre-market internal index** derived from **AXL perpetual order-book bid/ask data**.\
This ensures continuous pricing and fair liquidations even during external data interruptions.

***

### Mark Price and Liquidation Logic

PowerTrade’s **mark price mechanism** smooths volatility and ensures fair PnL and liquidation logic:

```
Mark Price = Index Price + EMA(Market Price – Index Price)
```

* The **EMA (Exponential Moving Average)** is calculated over a 15-second window to reduce short-term price noise.
* This ensures fair liquidation levels and accurate mark-to-market accounting.

**PnL Formulas:**

* **Long AXL:** `PnL = Position Size × (Mark Price – Entry Price)`
* **Short AXL:** `PnL = Position Size × (Entry Price – Mark Price)`

**Liquidation Trigger:**\
`Account Balance + Unrealized PnL ≤ Maintenance Margin`

Upon liquidation:

1. Open orders are canceled.
2. Positions are closed at market price.
3. PowerTrade’s **insurance fund** and **auto-deleveraging (ADL)** systems maintain market stability.

***

### Why Trade AXL Perpetual Futures on PowerTrade?

✅ **0% Trading Fees** – Zero maker/taker fees across all perpetual markets.\
✅ **Hourly Funding** – More frequent and transparent than 8-hour cycles.\
✅ **Benchmark-Aligned Pricing** – CoinGecko AXL index ensures fairness.\
✅ **Multi-Collateral Margining** – Use BTC, ETH, or stablecoins as collateral.\
✅ **Portfolio Margin** – Cross-margin perpetuals and options for efficiency.\
✅ **Trade Anywhere** – On [PowerTrade (CEX)](https://power.trade) or [Polaris (DEX)](https://polaris.trade).

PowerTrade’s AXL perpetual markets deliver **deep liquidity**, **verifiable transparency**, and **institutional-grade performance** — ideal for both active and professional traders.

***

### Example AXL Perpetual Use Cases

1️⃣ **Hedge AXL Spot Exposure**\
Short AXL perpetuals to protect your holdings during market pullbacks.

2️⃣ **Leverage Trading**\
Amplify AXL exposure with leverage for directional opportunities.

3️⃣ **Funding Rate Arbitrage**\
Profit from differences in AXL funding rates across exchanges.

4️⃣ **Volatility Trading**\
Trade AXL’s intraday volatility using leverage and 0% trading fees.

***

### Funding Transparency and Reproducibility

PowerTrade offers **complete funding transparency** — all rates are reproducible from public order-book and index data.\
Every trader can independently verify calculations, reinforcing fairness and accountability.

👉 **Full details:** PowerTrade Perpetual Funding Rate Methodology

***

### How to Start Trading AXL Perpetuals

1. **Create an account** on [PowerTrade](https://power.trade) or [Polaris](https://polaris.trade).
2. **Deposit collateral** – USDC, BTC, or ETH.
3. **Select AXL-PERPETUAL** from the perpetual markets tab.
4. **Trade instantly** with 0% fees and hourly funding transparency.

***

### Conclusion

PowerTrade’s **AXL Perpetual Futures** deliver the most efficient, transparent, and cost-effective way to trade Axelar with leverage.\
Whether you’re **hedging**, **speculating**, or **arbitraging**, **PowerTrade** and **Polaris** offer the most advanced and liquid AXL perpetual markets in crypto.

👉 **Start trading AXL perpetuals today on** [**PowerTrade**](https://power.trade) **or** [**Polaris**](https://polaris.trade)**.**


---

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