The cryptocurrency derivatives market continues to expand, offering traders more opportunities to diversify their portfolios and leverage emerging digital assets. In line with this evolution, a major step forward has been taken with the official launch of XLM, XTZ, ONT, IOTA, ATOM, NEO, and XMR coin-margined perpetual contracts. These additions enhance trading flexibility and deepen market liquidity for some of the most actively discussed blockchain-based assets in the crypto space.
This update marks a significant milestone for traders seeking exposure to high-potential altcoins through advanced financial instruments. Below, we break down what this launch means, how it benefits users, and what key features to pay attention to when engaging with these new contract offerings.
What Are Coin-Margined Perpetual Contracts?
Before diving into the specifics of the newly launched contracts, it’s essential to understand what coin-margined perpetual contracts are. Unlike USDT-margined contracts, which use a stablecoin as collateral, coin-margined contracts require traders to post the underlying cryptocurrency itself—such as XLM or ATOM—as margin.
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This approach offers several advantages:
- Direct exposure: Traders maintain direct price exposure without intermediaries like stablecoins.
- Hedging utility: Ideal for long-term holders who want to hedge their spot positions without selling their assets.
- Market depth: Encourages deeper liquidity in both spot and derivatives markets for the base asset.
These contracts do not have an expiration date (hence “perpetual”) and are settled in the native coin, making them especially attractive for traders focused on specific blockchain ecosystems.
Key Assets Now Available for Trading
The newly introduced coin-margined perpetual contracts cover seven prominent digital assets, each representing unique value propositions within the decentralized technology landscape:
- Stellar (XLM): A payment-focused blockchain designed for fast cross-border transactions.
- Tezos (XTZ): Known for its on-chain governance and self-amendment capabilities.
- Ontology (ONT): Offers identity solutions and enterprise-grade blockchain frameworks.
- IOTA (IOTA): Built for the Internet of Things (IoT), using a directed acyclic graph (DAG) instead of a traditional blockchain.
- Cosmos (ATOM): Enables interoperability between independent blockchains via its hub-and-zone model.
- Neo (NEO): Often referred to as the "Chinese Ethereum," supporting smart contracts and digital asset issuance.
- Monero (XMR): A privacy-centric cryptocurrency emphasizing untraceable transactions.
Each of these assets brings distinct technological innovations and community support, making them compelling candidates for derivative trading products.
Risk Management Enhancements
With the introduction of any new financial instrument comes increased responsibility toward user protection. To strengthen risk resilience, additional risk reserve funds have been allocated for each newly listed contract. These reserves act as a buffer during periods of extreme volatility, helping to minimize forced liquidations and protect traders from adverse market movements.
Moreover, these contracts follow standardized parameters such as:
- Tiered maintenance margin requirements
- Funding rate mechanisms aligned with market equilibrium
- Liquidation penalties designed to discourage manipulation
These measures ensure a fair and transparent trading environment while promoting long-term platform stability.
Why This Launch Matters for Traders
The availability of coin-margined perpetual contracts expands strategic options for both novice and experienced traders. For instance:
- Long-term investors can hedge their holdings against downside risks without divesting.
- Active traders gain enhanced leverage options and more precise directional bets.
- Arbitrageurs benefit from pricing discrepancies across different margin types (e.g., coin vs. USDT-margined).
Additionally, offering multiple margin types for the same asset increases overall market efficiency and reduces systemic risk.
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Frequently Asked Questions (FAQ)
Q: What is the difference between coin-margined and USDT-margined perpetual contracts?
A: Coin-margined contracts use the underlying cryptocurrency (like XLM or ATOM) as collateral and settle in that same coin. USDT-margined contracts use a stablecoin for margin and payouts, providing dollar-denominated exposure.
Q: When did these contracts go live?
A: The contracts were officially launched on July 22 at 16:00 Singapore Time. All trading pairs are now active and available for position opening.
Q: How is leverage determined for these contracts?
A: Leverage varies by tier and position size. Users should refer to the platform’s margin schedule to understand maximum allowable leverage based on their position level.
Q: Are there funding fees for holding perpetual positions?
A: Yes. Funding fees are exchanged between long and short positions every 8 hours to keep contract prices aligned with the underlying index price.
Q: Can I use these contracts for hedging purposes?
A: Absolutely. If you hold XMR or ATOM in your spot wallet, opening a short position in the corresponding coin-margined contract allows you to hedge against price drops without selling your assets.
Q: Is there a risk of liquidation with these contracts?
A: Yes. As with all leveraged products, insufficient margin can lead to liquidation. It's crucial to monitor your maintenance margin levels and use risk management tools like stop-loss orders.
Looking Ahead: Future Contract Listings
This launch is just one part of a broader roadmap aimed at expanding the range of available derivatives. More coin-margined perpetual contracts are expected to roll out in the coming months, covering additional high-demand tokens across DeFi, Layer 1, and privacy sectors.
User feedback and market demand will continue to guide future listing decisions, ensuring that the platform evolves in alignment with trader needs.
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Final Thoughts
The introduction of XLM, XTZ, ONT, IOTA, ATOM, NEO, and XMR coin-margined perpetual contracts reflects a growing trend toward diversified and sophisticated crypto trading tools. By combining robust risk management protocols with deep market access, traders now have more ways than ever to express their market views and manage exposure effectively.
As the digital asset ecosystem matures, platforms that support innovative yet secure trading products will play a pivotal role in shaping the future of finance. Whether you're hedging a portfolio or speculating on price movements, these new instruments offer valuable opportunities—provided they're used wisely.
Always remember: while leverage amplifies potential gains, it also increases risk. Trade responsibly, stay informed, and make full use of available resources to navigate volatile markets successfully.