Derivatives trading has become a cornerstone of modern crypto investment strategies, offering traders the ability to hedge positions, leverage market movements, and diversify portfolios. At the heart of this ecosystem are specialized account types designed to streamline trading operations—Contract Accounts and Inverse Contract Accounts. While both serve similar functions, they cater to different user models and product structures. Understanding their distinctions is essential for maximizing efficiency and performance in digital asset trading.
This guide breaks down the core features, supported products, and functional components of these two account types, helping you make informed decisions based on your trading style and platform setup.
What Is a Contract Account?
A Contract Account is a dedicated derivatives trading environment tailored for users operating under the Classic Account model. It acts as a centralized hub for managing futures contracts, simplifying asset tracking, margin allocation, and profit-and-loss calculations.
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The Contract Account supports:
- USDT-margined perpetual contracts
- Inverse perpetual and delivery (futures) contracts
This flexibility allows traders to engage in both stablecoin-based and crypto-margined derivatives without switching platforms. However, if you're using a Unified Trading Account and wish to trade non-inverse products like USDT perpetuals, fund transfers may be required.
Supported Assets
The Contract Account accepts USDT and any other digital assets used for settling inverse contracts. This dual-currency support enhances capital efficiency, especially for traders holding multiple cryptocurrencies.
What Is an Inverse Contract Account?
An Inverse Contract Account functions similarly but is exclusively designed for users within the Unified Trading Account framework. Its primary purpose is to manage inverse perpetual and delivery contracts, where the margin and profit/loss are denominated in cryptocurrency rather than stablecoins.
Unlike the broader capabilities of the Contract Account, the Inverse Contract Account only supports non-USDT and non-USDC assets used for settlement. This restriction ensures alignment with the unified risk engine and cross-margin mechanics of advanced trading systems.
Key Differences Between Contract and Inverse Contract Accounts
| Feature | Contract Account | Inverse Contract Account |
|---|---|---|
| User Type | Classic Account users | Unified Trading Account users |
| Supported Products | USDT perpetuals, inverse perpetuals, and futures | Inverse perpetuals and futures only |
| Settlement Currencies | USDT + crypto assets used in inverse contracts | Crypto assets (excluding USDT and USDC) |
Understanding these differences helps traders choose the right account structure based on their preferred trading instruments and margin preferences.
Core Components of a Contract or Inverse Contract Account
Each account type includes a standardized dashboard with key metrics that provide real-time insights into your trading performance.
1. Net Asset Value (NAV)
Your total equity across all positions, displayed in USD and BTC equivalents. The system converts each asset using index prices, then aggregates them into a single net value:
Net Value = Wallet Balance + Unrealized P&L (based on mark price)
For users viewing balances in fiat currencies other than USD, conversion rates are sourced from Yahoo Finance data feeds.
2. Current Unrealized P&L
This reflects gains or losses from open positions in perpetual and delivery contracts. It’s calculated by comparing your average entry price against the current mark price, not the last traded price, ensuring more accurate valuation.
3. Profit & Loss (P&L) Analysis
A comprehensive breakdown of your trading performance, including:
- Daily P&L
- Cumulative P&L
- Historical statistics
These insights help identify trends, assess risk exposure, and refine entry/exit strategies over time.
4. Deposit Options
Funding your account is flexible:
- Transfer crypto via blockchain from external wallets or exchanges
- Use fiat deposit methods like bank transfer or card payment
- Buy crypto instantly through express purchase or peer-to-peer (P2P) markets
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5. Instant Swap (Flash Exchange)
Convert one cryptocurrency to another instantly without placing orders on the spot market. Ideal for rebalancing portfolios or preparing margin funds quickly.
6. Internal Transfers
Move assets between main and sub-accounts seamlessly. Useful for portfolio segmentation, team-based trading, or risk isolation.
7. Transaction History
Access a full audit trail of all account activities—including deposits, withdrawals, swaps, funding payments, and position settlements—for transparency and recordkeeping.
8. Supported Tokens
Lists all cryptocurrencies currently eligible for use in contract trading within your account type.
9–10. Asset Net Value
Displays individual asset valuations based on:
Net Value = Wallet Balance + Unrealized P&L
This metric updates dynamically as prices fluctuate.
11. Realized Total P&L
The cumulative profit or loss from closed positions, grouped by settlement currency. For example:
- All USDT-settled contract results are aggregated under "USDT Realized P&L"
This helps track long-term profitability by denomination.
12. Per-Currency Unrealized P&L
Breaks down unrealized gains/losses by asset class, using the difference between entry price and current mark price. Note:
Final realized P&L also accounts for fees and funding costs upon closure.
Detailed calculation methods are available for both USDT Perpetual and Inverse Contracts, though specific formulas vary slightly due to margin denomination differences.
13. Wallet Balance (Including Bonus Funds)
The total amount of tokens held in your account, inclusive of promotional bonuses. Calculated as:
Wallet Balance = Available Balance + Position Margin + Order Cost
A negative balance may occur if fees exceed available funds—however, positive unrealized profits can prevent liquidation.
14. Bonus Funds (Experience Money)
Promotional credits that can be used for:
- Posting margin
- Covering trading fees
- Offsetting losses
While bonus amounts cannot be withdrawn, profits generated using bonus funds are fully withdrawable, subject to terms.
15. Available Balance (Including Bonus)
The portion of your wallet balance that can be used for new trades or orders. Under cross-margin mode, this balance works together with position margin to maintain open positions—meaning unrealized losses will reduce available funds accordingly.
16. Position Margin
Initial margin posted to open a leveraged position, plus estimated closing fees. This amount is locked until the position is closed.
17. Order Cost
Funds reserved for active limit orders that haven’t yet been filled.
Frequently Asked Questions (FAQ)
Q: Can I trade USDT perpetuals in an Inverse Contract Account?
A: No. The Inverse Contract Account only supports inverse contracts. To trade USDT-margined products, you must transfer funds to a Unified Trading Account or use a Classic Account with a Contract Account.
Q: Are bonus funds risky? Can they lead to losses?
A: Bonus funds themselves don’t create debt. However, if trades funded partially by bonuses result in losses exceeding your real balance, your equity may drop to zero—but you won’t owe additional funds.
Q: How is mark price different from last traded price?
A: Mark price is derived from external indices to prevent manipulation and ensure fair liquidations, while last traded price reflects actual recent trades on the order book.
Q: What happens if my wallet balance goes negative?
A: A negative balance typically occurs when funding fees exceed available funds. As long as unrealized profits cover the deficit, your position remains open.
Q: Can I transfer bonus funds to another account?
A: No. Bonus funds are non-transferable and can only be used within the account where they were issued.
Q: Why does my available balance change even when I’m not trading?
A: Fluctuations occur due to changes in unrealized P&L under cross-margin mode, funding rate deductions, or reserved amounts for open orders.
Final Thoughts
Choosing between a Contract Account and an Inverse Contract Account depends on your trading setup—whether you use a Classic or Unified Trading model—and your preferred contract types. Both offer powerful tools for managing derivatives exposure, but clarity on their scope ensures optimal capital utilization and risk control.
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