sCNH Perpetual Contract Introduction
sCNH Perpetual Contract
Margin
sCNH perpetual contract in all varieties of contracts use the denominated currency sCNH as collateral assets, the user only needs to hold sCNH to participate in the transaction of each variety contract. For example, when trading GMYD/sCNH or any other symbol perpetual contract, the user transfers sCNH as the secured asset.
Because sCNH is used as the guaranteed asset, when the price of the underlying asset (GMYD) falls, the value of the secured asset (sCNH) is not affected. Unlike coin-margined contracts where holding the underlying asset as collateral means the collateral value also drops when the asset price drops, sCNH standard perpetual contracts maintain stable collateral value regardless of the underlying asset's price movement.
Valuation Unit
An sCNH standard perpetual contract is denominated in sCNH. The index prices are taken from the corresponding spot sCNH prices. For example, the GMYD/sCNH index price is the price taken from the GMYD spot to sCNH.
Contract Face Value
The value of each contract for sCNH standard per contract is the corresponding underlying currency amount. For example, GMYD/sCNH has a face value representing a quantity of GMYD, and the contract value is calculated as:
Contract Value = Quantity × Price (in sCNH)
For instance, a position of 100 GMYD at 500 sCNH has a contract value of 50,000 sCNH.
Profit and Loss Currency
All types of contracts of the sCNH standard perpetual contract use the denominated currency sCNH to calculate profit or loss. When a user trades GMYD/sCNH or any other sCNH standard perpetual contract, the profit and loss is calculated and settled in sCNH.
PnL Calculation:
- Long Position: PnL = (Exit Price − Entry Price) × Quantity (in sCNH)
- Short Position: PnL = (Entry Price − Exit Price) × Quantity (in sCNH)
Initial Margin
The initial margin required to open a position is calculated as:
Initial Margin = Position Value ÷ Leverage = (Quantity × Price) ÷ Leverage (in sCNH)
Maintenance Margin
The maintenance margin required to maintain a position is calculated as:
Maintenance Margin = Position Value × Maintenance Margin Rate (in sCNH)
Example
| Item | Value |
|---|---|
| Trading Pair | GMYD/sCNH |
| Position | Long 100 GMYD |
| Entry Price | 500 sCNH |
| Leverage | 10× |
| Position Value | 100 × 500 = 50,000 sCNH |
| Initial Margin | 50,000 ÷ 10 = 5,000 sCNH |
| Exit Price | 550 sCNH |
| Realized PnL | (550 − 500) × 100 = +5,000 sCNH |