1. What is USDT Linear Perpetual Contract? How does it differ with Inverse Perpetual Contract?
The new USDT Perpetual Contract is a linear contract. The margin used for linear contracts is USDT. While for an inverse contract, if a trader would like to trade a BTCUSD contract, BTC would be used as the margin.
Compared to an Inverse Perpetual Contract, a USDT Linear Perpetual Contract consists of the following:
The margin and P&L calculations are more direct as compared to an inverse contract. When trading 1 Bitcoin and the price changes by 100 USDT, the profit/loss of the trader will be 100 USDT. The P&L chart of the USDT contracts will be a linear curve (directly proportional).
An inverse contract is traded based on BTC. Traders need to hold the coin as margin which is more volatile. Hence, even if traders choose not to trade, holding Bitcoin itself involves risks because the price may drop. On the other hand, the new USDT linear contract uses a stablecoin as margin and thus, traders do not have to hedge their position to avoid the risk of holding BTC.
2. How to deposit USDT?
Traders can navigate to the "My Account" page and click on Deposit. DueDEX only accepts ERC20 USDT which is based on the Ethereum network. The deposit will generally take about 10 minutes to arrive but may take longer depending on the ETH network status.
3. What is the contract value of the BTCUSDT contract on DueDEX?
The contract value of the BTCUSDT linear contract on DueDEX is of 0.0001 BTC. That means each contract worth 0.0001 Bitcoin. When the coin's price goes up, your contract has more value in USDT. On the other hand, if the price goes down, your contract will be worthless USDT.
4. What is the highest leverage supported by USDT contracts?
DueDEX linear contracts support up to 100x leverage, and do not support hedging. Trader could only hold a position on one side for the same contract type. Under isolated mode, traders can use different leverage when opening Buy and Sell positions so as to allow more flexibility in managing long-term and short-term speculative position. Under cross mode, by default, the USDT contract uses the highest leverage possible within the current risk limit to calculate the margin required.
5. How to withdraw USDT? What type of USDT is supported for withdrawal?
At the moment, DueDEX only supports the withdrawal of ERC20USDT. To withdraw USDT head to "Account" and go to Withdrawal after completing the 2FA you will be able to withdraw your margin. The exchange does not charge any extra fee for the withdrawal but be mindful that there will always be a mining fee charged from the blockchain network.