A live chat with 3,000+ fans to get to know more about our latest futures
Did you join our last ask-me-anything (AMA) live chat session with Jay Hao, CEO of OKEx, in our English Telegram group (t.me/okexofficial_en) on Nov 7? Throughout the AMA, Jay discussed our newly launched USDT-margined Futures with over 3,000 proactive followers, answering questions we collected from Twitter, as well as live questions from the audience on Telegram.
For those who missed it or who wanted to revisit the exciting Q&As, we have prepared for you this recap to all the 20 questions Jay answered from our communities.
Questions & Answers — All Original
In order to preserve the genuineness of the dialogue, we did not polish the 20 selected questions and Jay’s answers. The questions are categorized into two parts: USDT-margined Futures, perpetual swap, and future development.
1. USDT-margined Futures
What is USDT Margined Futures in simple words for beginners? (Twitter user: @0nchain_guy)
In brief, you can trade futures contracts of any cryptocurrencies with USDT.
USDT as margin is similar to you trade in USDT spot market but with leverages. You can go long or sell short with a leverage up to 100x.
Comparing to our existing futures product, it’s more stable, as you’ve already avoided the volatility of the collateral. It’s more convenient, as you don’t have to switch between currencies to trade different contracts. And it’s more suitable to beginners, as the threshold of entering the market has lowered to ~ $1.
What tokens will be listed in the USDT-margined futures market? (Telegram user: @Avoji1234)
USDT-margin futures will start with the nine major cryptocurrencies (BTC, EOS, ETH, LTC, BCH, XRP, ETC, BSV, TRX). We’ll consider other tokens too if it meets the listing standard.
What is the core and advantages USDT-Margin features from OKEx that have and make it more better than other exchanger? (Twitter user: @ma_selff)
1. Price — our fees are very low;
2. Low threshold — the face values of all USDT contracts are lower than USD$1;
3. Choices of cryptos — we support 9 major cryptos, and we’re planning to add more, including OKB, as long as we see the demand.
Not to mention our risk management system. You see, we have been offering futures since the launching of OKEx. And you know the crypto market has been wild these 2 years. We keep learning from this unpredictable market, perfecting the risk management system to deliver a reliable trading platform for our users.
We also offer different algo orders to help users to trade conveniently. They can even use our Derivatives Market Data to get insights for their trades. I would say we offer quite a lot of useful tools for our users. This is not something you can have on other platforms.
And of course our liquidity, needless to say we are one of the top exchanges. Good liquidity protects our users from extreme markets.
Actually our fees, in overall, should be the lowest in the industry. The more you trade, either spot or futures or perpetual swaps, the lower the fees for all markets. And now, if you hold more than 2000 OKB in your account, you can enjoy a 40% discount for fees.
Lastly, OKEx offers the most complete product suite. Our one stop trading platform allows you to trade fiat-to-token, spot, margin, futures, and perpetual swaps. This opens a lot of arbitrage opportunities which other exchanges cannot offer.
Launch of USDT Margined Futures is really Great by OKEx !! But why Okex selects USDT rather than USDK ? (Twitter user: @SamCryptoTrader)
USDK is indeed a good stablecoin. It’s the only compliant stablecoin which releases a audit report every month. Plus, its issuance to reserve ratio always remains at 1:1.
However, the circulation of USDK is still comparatively low at the moment. Until it is more widely adopted, we may launch USDK futures. For now, we’re already considering launching OKB futures.
Mr. JAY Hao, Is it possible for users to manipulate USDT margin transactions? Can the positions they open cause sudden fluctuations in price? (Twitter user: @Burakozan18)
No. We’re very confident with our risk management system. Measures like price limits and mark price are set up to prevent such price manipulation behaviors. I’m not going to explain how exactly it works with the boring numbers here. But let me just raise an example, for the recent market volatilities you see, if you look into the derivatives markets of different exchanges, you can see OKEx offers the healthiest market. There’s no flash crash, no computation error. We’re proud to have built a stable system for our customers.
Does it adopt the same clawback mechanism? (Twitter user: @kvarcevfore)
Yes same mechanism. In fact, since we have upgraded our risk managemet system a few months ago, we have NOT experienced a clawback for all the contracts.
What’s the index consist of? Any difference from btc margin futures? Will the price become more stable or more fluctuated? (Twitter user: @Pika1012)
OKEx, Binance, Huobi, Poloniex. Each weights 25%.
What is the difference of linear futures contract over BTC margin contract? Is this futures is a friendly user? What is the difference of linear over inverse contracts in this futures? How it is importance of the stability of USDT into the crypto ecosystem? (Twitter user: @Ganbatt30810469)
USDT-margined futures is linear, while token-margined futures (our existing product) is inverse. The biggest difference between them is the collateral asset and the face value of the contract.
USDT-margined futures allows you to use USDT as a collateral to trade any contracts. Say, if you want to trade BTC, ETH, and EOS contracts, you would only have to own some USDT. You will no longer have to exchange your assets into BTC, ETH, EOS in order to open the positions.
Also, the face value is ~ $1, meaning the threshold of opening a position is lowered. And it is much easier for users to calculate their profits by using USDT as margin.
Can USDT-margined futures replace the existing futures at OKEx? (Twitter user: @bill_claydon)
No. Although linear futures may be more convenient for most users, inverse futures (token-margined) is actually a good choice for miners.
For example if you’re a BTC miner, and you want to hedge the risks by using futures. You may want to open BTC-margined contracts instead, as you already have some BTCs.
Hey Jay 🙂 Is the insurance fund of USDT-margined futures shared with OKEx existing futures /Swap? (Telegram user: @lapawahudywae8792)
No. They are two separated insurance funds.
Any bonuses if I join the simulation? what’s its difference between the simulation and the real product to be launched? (Telegram user: @Tommyee)
Of course, you’ll get a test fund (10,000USDT) to play in the simulation trading. Top performers in the campaign may get a chance to share 100,000 USDT.
Check it out here. It’s still ON, you should try it out 😎
Will you set leverage x125 as Binance? (Twitter user: @hiamPluto)
To me, 125x leverage is more like a marketing gimmick. The risk of opening positions with 100x leverage is already pretty high. We designed the product with the interests of our customers in mind. Striking a good balance is the most important thing for us. 125x will simply increase the market risks.
Comparing to other exchanges, do you have any advantages in terms of fees (Twitter user: @candysoul7)
We adopt a tiered fee schedule. If you compare with other exchanges, you will see that we offer better maker fees. Also, the forced liquidation fee is the same as your current tier’s taker fee. It’s worth to note that some other exchanges may charge 5X of the regular taker fee for forced liquidation.
2. Perpetual Swap
Do you have plans on launching USDT-margined perpetual swaps too? (Telegram user: @Dora_explora94)
Of course, we can expect the launch in December!! VERY SOON, as well as the APP version.
What is the position limit for OKEX’s Perpetual Swap? (Telegram user: @bulonhienhongkk)
Pls find here https://www.okex.me/derivatives/futures/position.
What affects Perpetual Swaps loan fee, will Okex have a plan to reduce Perpetual Swaps and Future fee, such as using OKB to pay fees? (Telegram user: @bulonhienhone)
We have just lowered the fees for perpetual swaps this week, about 50%! If you’re holding more OKB then you can even have more fee discounts.
Given the rollover convenience and new risk management measures, does it mean the Perpetual Swap is a better instrument than the existing futures? (Telegram user: @cailozma1900)
In fact, the new risk management system is already adopted for futures. We see good liquidity for both futures and perpetual swaps markets. It’s hard to compare and see which product is better, it’s like comparing apple to oranges.
Futures contracts expire on a particular date, so the basis will be bigger. But perpetual swaps adopt a funding mechanism. Users can actually use them to execute different trading strategies, they can even try to arbitrage between the two products with different investment strategies.
Does an increase in the number of perpetual swaps affects the technical side of trading? is there a glitch and delays? (Twitter user: @JayHwan555)
Of course not. OKEx has years of experience in the exchange field. It should be arguably one of the most well-established exchanges in the world.
We set very high standard for our technical stability maintenance. OKEx futures hasn’t encountered any technical problems through many extreme markets and high frequency of concurrent since its launch. On the basis of which, OKEx perpetual swap has been consistently upgraded the entire technical framework, optimized UI & UE, and improved the algo.
At the same time, we won’t stop here. Our trading system has been continuously optimized and upgraded. For example, some time ago, we just upgraded the matching engine for futures product and provided Tick by tick’s WebSocket market push service.
3. Future Development
Are you guys now giving up the spot market and focusing on derivatives instead? (Twitter user: @5Titovsky)
No. Spot trading is still an integral part of OKEx. We are launching more derivatives because we see the rising demand in the market. Also, we want to provide our users more convenient options. At the same time, we’re still improving the liquidity of our spot markets, enhancing the risk management for margin trading pairs. We’re still listing new projects and opening more margin trading pairs.
One of our biggest strengths is always being an one-stop trading platform. We’re trying to perfect every of our products, not only derivatives.
How big do you think crypto derivatives will be and what part will futures play in that? (Twitter user: @MoooonTo)
Huge! as you can see the rising demands. Futures trading is only a part of derivatives, there are still a lot of instruments like options which we also plan to roll out this year. This actually represents the crypto market is getting more and more mature, which is good for the whole blockchain development.
More AMA to Come
We would like to thank everyone in our communities for making the AMA happen and communicating your ideas with us. Our next AMA with Jay will be held at 10:00 Nov 12 (UTC) in our English Telegram group, sharing information on the OKEx ecosystem. If you have any questions for Jay, please don’t hesitate to leave your question in this tweet:
See you all tomorrow at 10:00 (UTC)!
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