We are launching a completely new set of perpetual contracts on Xena Exchange:
All contracts will be direct contracts (the value of each contract equals 1 unit of its base currency) settled in USDC. To support this, all margin accounts (currently nominated in BTC) will change their base currency. Currently, existing contracts will also be amended and use the standard contract definition:
We will also temporarily decommission the current variance contract (XBTVAR_1M).
Please note, that despite the new account currency, you will still be able to use Bitcoins deposited to your account as collateral for your trades. Your Bitcoins will not be converted to USDC.
Actions required from you
- If you have a zero balance account, nothing is required from your side
- If you have a non-zero balance in BTC, nothing is required from your side. You will still be able to deposit and withdraw your BTC after the update and use them as collateral for future trades
- If you have open positions, we recommend closing them and canceling active orders prior to the update. If you keep your positions open during the update, we will close them automatically using the index price as of the moment of the update. We will not re-open positions in new contracts
- If you use trading software, make sure your code is updated to support new contract specifications, margin rates and quantities
Important note on collateral
- Xena Exchange allows you to use a currency other than your account currency as collateral. For instance, keeping 1 Bitcoin on your account nominated in USDC, you can trade as if you had 1 * (Current BTC to USDC rate) * (1 - 15%) USDC on your account. Here 15% is the haircut rate.
- No matter what currency you use as collateral, your PnL will be settled in USDC. So in some cases, you may find the USDC balance of your account negative. This is completely normal, provided that the value of your collateral (reduced by the haircut rate) exceeds the credit.
- Right now Xena Exchange does not charge any interest rate for the negative balances. However, we encourage you to deposit USDC to trade. We reserve the right to make an automatic exchange and convert part of your BTC to USDC using our internal conversion rate to cover the credit, provided it exceeds 100 USDC or lasts for longer than 72 hours, or if your positions have been liquidated.
- Note on margining:
- Margin currency is USDC
- We constantly calculate the equity of your account in USDC. Equity equals the sum of the balance of your account in USDC, current PnL of all your open positions (which is also USDC) and value of BTC on your account in USDC (reduced by the haircut rate, which is 15%)
- You can send orders and open new positions provided the total initial margin doesn’t exceed equity
- Your positions will be liquidated if your equity falls below your maintenance margin
- Keep in mind the collateral risk when using a currency other than USDC as collateral. The equity of your account will fall (potentially causing liquidation) if the rate of your collateral currency to USDC falls, even if you have unsettled profit.
To release the update and launch the new contracts, we will have a maintenance window between 07 Dec 2021 at 11:00 UTC and 07 Dec 2021 at 15:00 UTC. During this period of time, all trading operations, deposits and withdrawals will be restricted.
Should you have any questions, please feel free to contact our support team.