BloFin offers two types of perpetual futures contracts:

• Coin-Margined Contracts – Margin and settlement are in the underlying cryptocurrency (e.g., BTC or ETH).
• USDT-Margined Contracts – Margin and settlement are in USDT.

Although both contract types allow leveraged trading, they differ significantly in their pricing units, contract values, margin assets, settlement methods, profit and loss (PnL) calculations, and risk characteristics. Understanding these differences will help you choose the contract type that best suits your trading strategy.

Key Differences

Practical Examples

Initial Conditions

• BTC Price: 100,000 USD
• Leverage: 10×
• USDT-Margined Contract Face Value: 0.001 BTC
• Coin-Margined Contract Face Value: 1 USD

Long Position Example

Coin-Margined Contract

• Margin: 0.05 BTC
• Position Size: 0.5 BTC
• Contracts: 50,000 (1 USD face value per contract)

USDT-Margined Contract

• Margin: 5,000 USDT
• Position Size: 0.5 BTC
• Contracts: 500 (0.001 BTC face value per contract)

BTC Price Increases by 10%

Entry Price: 100,000 USD

Exit Price: 110,000 USD
 

Coin-Margined Contract

Profit Formula

Profit = (1 / Entry Price − 1 / Exit Price) × Contract Face Value × Number of Contracts

Profit

= (1 / 100000 − 1 / 110000) × 1 × 50000

= 0.04545454545 BTC

Converted to USD:

0.04545454545 × 110000

= 5,000 USD

Collateral Appreciation

= 0.05 × (110000 − 100000)

= 500 USD

Total Profit = 5,500 USD

USDT-Margined Contract

Profit = (Exit Price − Entry Price) × Contract Face Value × Number of Contracts

= (110000 − 100000) × 0.001 × 500

= 5,000 USDT

Result

• Coin-Margined: Profit is settled in BTC, and its USD value also increases as BTC appreciates.
• USDT-Margined: Profit is settled directly in USDT and changes linearly with price movement.

Short Position Example

Coin-Margined Contract

• Margin: 0.05 BTC
• Position Size: 0.5 BTC
• Contracts: 50,000

USDT-Margined Contract

• Margin: 5,000 USDT
• Position Size: 0.5 BTC
• Contracts: 500

BTC Price Decreases by 10%

Entry Price: 100,000 USD

Exit Price: 90,000 USD
 

Coin-Margined Contract

Profit

= (1 / Exit Price − 1 / Entry Price) × Contract Face Value × Number of Contracts

= (1 / 90000 − 1 / 100000) × 1 × 50000

= 0.05555555555 BTC

Converted to USD

0.05555555555 × 90000

= 5,000 USD

Collateral Loss

0.05 × (90000 − 100000)

= −500 USD

Total Profit = 4,500 USD

USDT-Margined Contract

Profit

= (Entry Price − Exit Price) × Contract Face Value × Number of Contracts

= (100000 − 90000) × 0.001 × 500

= 5,000 USDT

Result

• Coin-Margined: Profit is settled in BTC, while the USD value of your collateral decreases as BTC falls.
• USDT-Margined: Profit remains denominated in USDT.

Profit & Loss Calculation

1. Coin-Margined Contracts

Unrealized PnL

Long Position

Unrealized PnL = Contract Size × (1 / Entry Price − 1 / Mark Price)

Short Position

Unrealized PnL = Contract Size × (1 / Mark Price − 1 / Entry Price)

PnL is denominated in the base coin (e.g., BTC), and price fluctuations affect overall account value.

Realized PnL

Long Position

Realized PnL = Contract Size × (1 / Entry Price − 1 / Exit Price)

Short Position

Realized PnL = Contract Size × (1 / Exit Price − 1 / Entry Price)

Example

BTC Coin-Margined Long Position

Entry Price = 60,000

Exit Price = 62,000

Contract Value = 6,000 USD (equivalent to 0.1 BTC at entry)

Realized PnL

= 6000 × (1 / 60000 − 1 / 62000)

= 0.0032258 BTC

Converted at Exit Price

0.0032258 × 62000 ≈ 200 USDT

2. USDT-Margined Contracts

Unrealized PnL

Long Position

Unrealized PnL = Position Size × (Mark Price − Entry Price)

Short Position

Unrealized PnL = Position Size × (Entry Price − Mark Price)

PnL is denominated in USDT and is not affected by fluctuations in the underlying cryptocurrency after calculation.

Realized PnL

Long Position

Realized PnL = Position Size × (Exit Price − Entry Price)

Short Position

Realized PnL = Position Size × (Entry Price − Exit Price)

Example

USDT-Margined Short Position

Entry Price = 60,000

Exit Price = 58,000

Position Size = 0.1 BTC

Realized PnL

= 0.1 × (60000 − 58000)

= 200 USDT

Funding Fee

Coin-Margined Contracts

Funding Fee = Contract Size × Settlement Price × Funding Rate

Settlement Unit: Base Coin (BTC, ETH, etc.)

USDT-Margined Contracts

Funding Fee = Position Notional × Funding Rate

Settlement Unit: USDT

Trading Fee

Coin-Margined Contracts

Fee = Contract Size × Trade Price × Fee Rate

Maker Fee = 0.02%

Taker Fee = 0.06%

Example

BTC Coin-Margined

Size = 0.1 BTC

Trade Price = 60,000 USDT

Taker Fee = 0.06%

Fee

= 0.1 × 60000 × 0.0006 ÷ 60000

= 0.00006 BTC

USDT-Margined Contracts

Fee = Position Notional × Fee Rate

Position Notional = Position Size × Trade Price

Fee is denominated in USDT.

Example

Position Size = 0.1 BTC

Trade Price = 60,000 USDT

Taker Fee = 0.06%

Fee

= (0.1 × 60000) × 0.0006

= 3.6 USDT

Forced Liquidation

Margin Ratio = Account Equity ÷ (Maintenance Margin + Transaction Fee)

Forced liquidation is triggered when:

Margin Ratio ≤ 100%

Maintenance Margin = Position Notional × Maintenance Margin Rate

The system will attempt partial liquidation first. If the position still cannot satisfy the maintenance margin requirement, full liquidation will occur.

Any remaining balance after liquidation will be returned to the account. If losses exceed the available margin, the Insurance Fund will absorb the deficit. Auto-Deleveraging (ADL) may apply under extreme market conditions.

Which Contract Should I Choose?

Coin-Margined Contracts may be more suitable if you:

• Already hold the underlying cryptocurrency.
• Want profits and losses settled in the base coin.
• Prefer to accumulate more cryptocurrency over time.

USDT-Margined Contracts may be more suitable if you:

• Prefer stable-value collateral.
• Want profits and losses settled in USDT.
• Prefer simpler and more predictable PnL calculations.

Frequently Asked Questions

Q1. Will Coin-Margined PnL be affected by coin price? What about USDT-Margined PnL?

A: Yes. Coin-Margined PnL is denominated in the base coin, so changes in the coin price affect both your PnL and overall account equity. USDT-Margined PnL is denominated in USDT and is not affected by changes in the underlying coin price once the position has been closed.

Q2. Does USDT-Margined margin fluctuate with coin price? What about Coin-Margined margin?

A: No. USDT-Margined margin is held in USDT, so changes in the underlying cryptocurrency price do not affect the margin value. Coin-Margined margin is held in the base coin, so its value changes as the coin price fluctuates.

Q3. How is the trading fee calculated?

A: Trading fees are calculated by applying the applicable Maker or Taker fee rate to the position value. Coin-Margined trading fees are settled in the base coin, while USDT-Margined trading fees are settled in USDT.

Q4. Are there any other significant differences between Coin-Margined and USDT-Margined contracts?

A: The primary difference is the settlement currency. Coin-Margined Contracts use the underlying cryptocurrency for margin, settlement, trading fees, funding fees, and PnL, while USDT-Margined Contracts use USDT. As a result, the calculation methods and risk characteristics differ between the two contract types.