What are crypto-margined futures and USDT-margined futures? What are the differences?
OKX futures contracts are categorized based on the margin currency. They include Crypto-margined futures, USDT-margined futures, and USDC-margined futures.
Crypto-margined futures are quoted in USD. The underlying cryptocurrency (such as BTC or ETH) is used as both the collateral asset and the settlement currency for calculating profits and losses.
USDT-margined futures are quoted in USDT. USDT is used as both the collateral asset and the settlement currency for calculating profits and losses.
USDC-margined futures follow the same structure as USDT-margined futures. USDC is used as both the collateral asset and the settlement currency for calculating profits and losses.
What's the difference between crypto-margined futures and USDT-margined futures?
The pricing units
USDT-margined perpetual futures are quoted in USDT.
Crypto-margined perpetual futures are quoted in USD.
Because the pricing units are different, their index prices are also different.
For example:
The index price of BTCUSDT perpetual is based on the BTC/USDT price.
The index price of BTCUSD perpetual (Crypto-margined) is based on the BTC/USD price.
2. Contract value
For USDT-margined perpetual futures, the contract size is based on the underlying cryptocurrency. Example: The contract size of BTCUSDT perpetual is 0.01 BTC per contract.
For Crypto-margined perpetual futures, the contract size is denominated in USD. Example: The contract size of BTCUSD perpetual is 100 USD per contract.
3. Collateral asset
USDT-margined perpetual futures use USDT as the collateral asset. You only need to hold USDT to trade different USDT-margined contracts.
Crypto-margined perpetual futures use the underlying cryptocurrency as collateral. You must hold the corresponding cryptocurrency to trade that contract. Example: to trade BTCUSD perpetual (Crypto-margined), you need to hold BTC as collateral.
4. Profit and loss (PnL) settlement currency
USDT-margined perpetual futures settle PnL in USDT.
Crypto-margined perpetual futures settle PnL in the underlying crypto. Example: If you trade BTCUSD perpetual (Crypto-margined), your PnL is settled in BTC.
These structural differences may lead to different return characteristics and risk exposures under various market conditions.
PnL structure comparison: Crypto-margined futures vs USDT-margined futures
Crypto-margined perpetual futures and USDT-margined perpetual futures differ in settlement currency. This difference affects how profit and loss (PnL) is calculated and how returns behave under different market conditions.
1. Long position comparison
Assuming 1 USDT ≈ 1 USD, when the price of BTC is $10,000.
Crypto-margined perpetual futures: Use 0.1 BTC with 10x leverage to go long 1 BTC, which is 100 contracts (contract size: $100 per contract).
USDT-margined perpetual futures: Use 1,000 USDT with 10x leverage to long 1 BTC, which is 100 contracts (contract size 0.01 BTC per contract).
If BTC increases by 10%, the profit is generated in BTC for Crypto-margined futures and USDT for USDT-margined futures. Because Crypto-margined futures settle in BTC, the value of both the position and collateral increases as BTC rises. When converted into USD value, the total return may be higher compared to USDT-margined futures.
2. Short position comparison
Assuming 1 USDT ≈ 1 USD, when the price of BTC is $10,000:
Crypto-margined perpetual futures: Use 0.1 BTC with 10x leverage to short 1 BTC, which is 100 contracts (contract size: $100 per contract).
USDT-margined contract (linear contract): Use 1,000 USDT with 10x leverage to short 1 BTC, which is 100 contracts (contract size 0.01 BTC per contract).
Assuming the BTC price decreased by 10%, the profict is generated in BTC for Crypto-margined futures and USDT for USDT-margined futures. Because Crypto-margined futures settle in BTC, the value of BTC-based returns depends on the BTC price. Since USDT-margined futures settle in USDT, the USD value of PnL is directly reflected in stablecoin terms.
Key differences in settlement and return structure
Because the settlement currency is different, the profit and loss (PnL) behavior of the two contract types also differs.
USDT-margined futures settle PnL in USDT. Your returns are directly proportional to the price movement of the contract.
Crypto-margined futures settle PnL in the underlying crypto. Both your position and collateral are exposed to price fluctuations, which may amplify gains or losses when converted to USD value.
With Crypto-margined futures, returns are denominated in the underlying cryptocurrency. This means overall account value may change with both contract price movements and the price of the collateral asset itself.
With USDT-margined futures, returns are denominated in USDT. Since the collateral value remains stable in USDT terms, changes in overall account value are directly tied to contract performance rather than fluctuations in the margin asset.
In summary, OKX offers Crypto-margined futures, USDT-margined futures, and USDC-margined futures. These contract types differ in margin currency, settlement structure, and return characteristics. Understanding these differences can help clarify how each contract behaves under different market conditions.