Futures

OverviewCopy Anchor Link

LNM Futures is a derivative perpetual futures contract whose underlying asset is a weighted basket of BTCUSD perpetual futures from multiple exchanges, such as Bybit, Binance or OKX.

It is designed to capture the performance of various BTC/USD perpetual contracts across different exchanges or platforms.

Key CharacteristicsCopy Anchor Link

Diversification of Exchange Risk: This construction helps mitigate the risks associated with any single exchange. If a particular exchange experiences disruptions, LNM Futures would still be exposed to the performance of BTC/USD on other exchanges.

Reduced Impact of Funding Rates: Since perpetual futures have a funding rate to anchor the price to spot, by aggregating across multiple exchanges, the impact of any single exchange's funding rate anomalies is reduced.

Market Liquidity: By aggregating liquidity from multiple venues, LNM Futures offers deep liquidity through a single platform.

Price ReferenceCopy Anchor Link

The LNM Bitcoin Perp Mark is a weighted average of the mark prices of BTC/USD perpetual futures across selected exchanges. It values your positions: profit and loss (P&L), margin and funding.

The current basket composition is as follows:

Loading exchange weights...

This composition may be modified without prior notice.

Order execution uses the order book, not the mark price. Market orders fill at the order book price for their size. Limit, take profit, stop loss and liquidation levels, in isolated and cross margin, trigger when the order book price for the order's size crosses them, and fill at the level.

Taking margin or profit out of a running position (a cross margin withdrawal or leverage change, or an isolated cash-in) is also calculated at the mark price.

The last price is a weighted average of the same exchanges' last traded prices. It is shown for information only and is never used to value or trigger anything.

Contract SpecificationCopy Anchor Link

LeverageCopy Anchor Link

Leverage allows you to open positions larger than your margin. Higher leverage means higher potential returns but also higher risk.

Margin ModesCopy Anchor Link

1. Isolated MarginCopy Anchor Link

Each trade has its own margin. Liquidation only affects that position.

• Margin is locked per trade
• Add or remove margin on open positions
• Risk is isolated to individual trades
• Best for managing risk on individual positions

2. Cross MarginCopy Anchor Link

All positions share a common margin pool.

• Unrealized PnL offsets across positions
• More capital efficient
• Single liquidation price for entire account
• Best for active traders managing multiple positions

Trade MarginCopy Anchor Link

The margin is the collateral you put up to open a position. It is calculated as:

margin = (quantity / price) × (1 / leverage) × 100,000,000

Maintenance MarginCopy Anchor Link

The minimum margin required to keep a position open.

Trading FeeCopy Anchor Link

Trading fees are tier-based, decreasing as your trading volume increases.

Your tier is based on your 30-day cumulative volume. Check your Profile to view your current Tier.

Trading fee calculation processCopy Anchor Link

1. Initial Setup:

   • Total fee paid = 0
   • Maintenance margin = Opening fee reserved + Closing fee reserved
   • Opening fee reserved = (Quantity / Entry price) × Tier fee
   • Closing fee reserved = (Quantity / Initial liquidation price) × Tier fee

2. At Position Opening:

   • Total fee paid = Opening fee
   • Maintenance margin = Opening fee reserved + Closing fee reserved - Opening fee
   • (Opening fee reserved and opening fee can be different in case of change of tier fee)

3. At Position Closing:

   • Total fee paid = Opening fee + Closing fee
   • Maintenance margin = 0

Example:

For a long position with:

• Quantity: $60
• Trade margin: 10,000 sats
• Leverage: 10x
• Entry price: $60,000
• Initial liquidation price: $54,545

Calculation:

• Opening fee reserved = 100,000,000 × (60/60,000) × 0.1% = 100 sats
• Closing fee reserved = 100,000,000 × (60/54,545) × 0.1% = 110 sats
• At the time of trading, if there is no change of tier fee, total fee paid = 100 sats and maintenance margin = 100 + 110 - 100 = 110 sats
• When closing the position, if there is no change of tier fee, total fee paid = 100 + 110 = 210 sats and maintenance margin = 0

Funding FeeCopy Anchor Link

Funding fees in perpetual futures maintain the price of the perpetual contract close to the price of the underlying asset (spot price). The funding rate calculation is an aggregation of individual rates determined using the same methodology employed to construct the price.

Funding fee calculation processCopy Anchor Link

Funding fees are payments exchanged between traders holding long and short positions.

When funding rates are positive:

• Long positions pay the fee
• Short positions receive the fee

When funding rates are negative:

• Long positions receive the fee
• Short positions pay the fee

This mechanism helps maintain price alignment between the futures contract and the spot market. A positive funding rate suggests bullish market conditions, while a negative funding rate suggests bearish conditions.

Funding fees are:

• Updated every 8 hours (00:00, 08:00, 16:00 UTC)
• Applied only to running positions
• Deducted from the position margin for paid funding fee
• Added to your balance for received funding fee
• Visible in the Funding section of your wallet

Example (positive rate +0.01%):

Long position:

• Quantity: $10,000
• BTCUSD rate: $60,000
• Funding fee paid = (10,000/60,000) × 0.01% × 100,000,000 = 1,667 sats

Short position:

• Quantity: $10,000
• BTCUSD rate: $60,000
• Funding fee received = 1,667 sats

Example (negative rate -0.01%):

Long position receives 1,667 sats, short position pays 1,667 sats.

Add MarginCopy Anchor Link

You can add margin to your running positions at any time by clicking the "+" button in the Actions section of the Running Positions blotter. This action will reduce the leverage of your running position, thereby decreasing the likelihood of a liquidation event.

Effects of Adding Margin:

When adding margin:

• Leverage decreases (reduces liquidation risk)
• Liquidation moves further from current price
• Account balance decreases by the added amount

Cash InCopy Anchor Link

You can cash in from your running positions at any time by clicking the "-" button in the Actions section of the Running Positions blotter.

When you cash in, funds are first deducted from the trade's profit and loss (P&L), if applicable, and then from the trade's margin. Please note that cashing in increases the trade's leverage; therefore, not all of the margin will be available, as leverage is subject to limits.

Effects of Cashing In:

When cashing in from positive P&L:

• Entry Price changes
• P&L decreases

When cashing in from margin:

• Liquidation moves closer to current price
• Leverage increases

In both cases, account balance increases by the removed amount.

Order TypesCopy Anchor Link

Limit, take profit and stop loss orders trigger when the order book price for your size reaches your level, and fill at that level.

LiquidationCopy Anchor Link

The liquidation price is the price at which your losses use up your trading margin. It is calculated from your entry price, leverage, and side; the maintenance margin is held separately to pay the fees. A position is liquidated when the order book price for its size crosses its liquidation price, and it is closed at that price.

One exception: if a funding fee uses up your margin plus the position's P&L at the fixing, the position is liquidated at the fixing price, the mark price at that time.

Set stop-loss orders to manage risk and avoid liquidation.

Trailing Stop LossCopy Anchor Link

A trailing stop loss follows the market when it moves in your favor, locking in gains while still protecting you if the price reverses.

Instead of a fixed price, you set a distance (a percentage of the current price). The stop is placed that far from the price and moves with it:

• Long: the stop sits below the market and rises as the price rises. If the price falls, the stop stays put.
• Short: the stop sits above the market and falls as the price falls. If the price rises, the stop stays put.

The stop only moves in your favor, never backward, and triggers a close when the market reverses to reach it. Like any stop, it triggers when the order book price for your size reaches that level, and the position is closed at the level. The distance is capped so the stop can never sit beyond your liquidation price.

Example: A long at $60,000 with a 10% distance sets the stop trigger at $54,000. If the price rises to $72,000, the trigger moves up to $64,800. If the price then falls back to $64,800, the stop is triggered and the position is closed at $64,800.

Available on market and limit orders in isolated margin.

Market LiquidityCopy Anchor Link

Order execution uses the order book, which determines available liquidity at each price level. The volume ladder visualizes this order book in real time, showing how much can be bought or sold at different prices.

Liquidity fluctuates with market conditions. Larger orders may execute at less favorable prices as they consume multiple price levels in the order book.

All trading events—including entry, exit, liquidation, take profit, and stop loss—execute against the order book, not the mark price, except a liquidation by funding, which happens at the mark price.

⚙️ Liquidation example: A trader holds a long position worth $150,000 with liquidation level at 92,000. The mark price shows 92,030, but the volume ladder shows the best bid for $150,000 is at 92,010.

If liquidity shifts and the bid for this quantity drops below 92,000, the position is liquidated at 92,000—even though the mark price remains above 92,000. The order book price, not the mark price, triggers liquidation.

GlossaryCopy Anchor Link