The AUCTION token has expanded its availability across several key trading products. This integration provides traders and investors with more versatile strategies to engage with the asset, from leveraged positions to earning opportunities and derivative contracts. Understanding the mechanics of each product is crucial for effective participation.
This guide details the specific rules and features of these new AUCTION offerings.
Available AUCTION Trading Products
The AUCTION token is now accessible through multiple financial instruments on major trading platforms. These products are designed to cater to different risk profiles and investment goals.
Leverage Trading with AUCTION
Leverage trading for the AUCTION/USDT pair allows users to amplify their market exposure by borrowing funds.
- Trading Pair: AUCTION/USDT.
- Leverage Tiers: The specific margin levels and associated risk parameters are structured in tiers. These tiers determine the initial margin, maintenance margin, and maximum leverage available for a position.
- Risk Management: It is critical to understand the platform's liquidation rules before engaging in leverage trading to manage potential risks effectively.
Simple Earn Opportunities
The Simple Earn product offers a way to generate yield on AUCTION holdings.
- Earning Mechanics: Users can subscribe to locking their AUCTION tokens for a fixed period to earn interest or opt for more flexible, redeemable products.
- Yield Rates: The specific APY (Annual Percentage Yield) for these products can vary based on market demand and token supply. Rates are typically updated dynamically on the product page.
AUCTION Perpetual Contracts
Perpetual contracts (perps) for AUCTION/USDT enable speculation on the token's future price without an expiry date.
The core specifications for the AUCTIONUSDT perpetual contract are standardized for clarity.
| Contract Element | Specification |
|---|---|
| Underlying Asset | AUCTION/USDT Index |
| Settlement Currency | USDT |
| Contract Face Value | 0.1 AUCTION |
| Price Quotation | USDT price for 1 AUCTION |
| Minimum Price Movement | 0.001 USDT |
| Leverage Range | 0.01x to 50x |
| Funding Rate Calculation | Clamp(MA([(Mark Price - Spot Index) / Index], -1.5%, 1.5%) |
| Trading Schedule | 24/7 |
A special funding rate cap was implemented immediately following the launch to ensure market stability during its initial, potentially volatile phase. This cap was designed to protect users from abnormally high funding charges.
After this initial period, the standard funding rate mechanism resumed. This rate is a periodic payment between long and short traders to keep the contract price aligned with the spot index. All other standard contract rules, such as limit order specifications, align with those of other perpetual contracts on the platform.
For a comprehensive understanding of the terms and conditions governing these products, users should always 👉 review the official user agreements.
Frequently Asked Questions
What is the main difference between leverage trading and perpetual contracts?
Leverage trading involves borrowing assets to increase your buying power in the spot market. Perpetual contracts are derivative products that track an asset's price, use higher leverage, and employ a funding rate mechanism to maintain price alignment without an expiry date.
How does the funding rate work in AUCTION perpetual contracts?
The funding rate is a fee paid between traders holding long and short positions. If the rate is positive, longs pay shorts; if negative, shorts pay longs. This mechanism helps tether the perpetual contract price to the underlying spot price over time.
Is my principal at risk in Simple Earn products?
While Simple Earn products are generally lower risk than trading, they are not principal-guaranteed. The value of your earned interest and locked tokens will fluctuate with the market price of AUCTION.
What should I check before using leverage on AUCTION?
Always review the specific margin requirements, liquidation price formula, and trading fees. Ensure you understand how leverage magnifies both potential profits and losses before entering any position.
Can I trade these products on both mobile and desktop platforms?
Yes, these AUCTION trading products are accessible via web browsers, official mobile applications, and through API connections for automated trading strategies.
Where can I find the most current rates for Simple Earn?
The platform’s official website or application provides the most up-to-date information on available locking periods and their corresponding APY rates for AUCTION and other supported assets.