<p><strong>Step 1:</strong><br />Click “<strong>Buy Crypto</strong>” on the upper navigation bar and select the “<strong>Quick Buy/Sell</strong>” on the drop down list to access the option of Express Buy crypto. Then, proceed to click on <strong>Third-</strong><strong>p</strong><strong>arty</strong>.</p><p><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20240302165855268dn6TUmyvsGKYuB.jpeg" style="width:863px;height:413px" /></p><p><br /></p><p>Alternatively, you can click on this URL page: <a href="https://otc.mexc.com/creditCard" rel="nofollow">https://otc.mexc.com/creditCard</a></p><p><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20240302165854721xFCFsL3RBXFFp5.jpeg" style="width:863px;height:413px" /></p><p><br /></p><div><div class="ace-line ace-line old-record-id-HusOdusWcoK6YIxGc12ujL4dsPe"><strong>Step 2:</strong></div><div class="ace-line ace-line old-record-id-YaAadqSGeokwyExI5EzuBB8ksPf">Select the <strong>Fiat currency</strong> you want to pay for. Taking EUR as an example, there are few Third-party service providers you can choose from the list to get the best buying price.</div><p><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20240302165855137d5U57mzpiRoQGY.jpeg" style="width:863px;height:413px" /></p><p><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20240302165855182HxmDfzWLASSww6.jpeg" style="width:863px;height:413px" /></p></div><p><br /></p><div><div class="ace-line ace-line old-record-id-EWuadsMKeoaoeKx6dq0ui2mUsFb"><strong>Step 3:</strong></div><div class="ace-line ace-line old-record-id-WAmWd8OI0oYKGKxi6Riuz49GsKe"><strong>Select</strong> the cryptocurrency you would like to receive in your MEXC wallet address. Available options include: USDT, USDC, BTC, few altcoins and stablecoins that are commonly used.</div><p><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20240302165855091Kx5ZRKRzKDGFfq.jpeg" style="width:863px;height:413px" /></p><p><br /></p></div><div><div class="ace-line ace-line old-record-id-S48yduukAo2EGwxlw1buSgbUsLx"><strong>Step 4</strong>: </div><div class="ace-line ace-line old-record-id-XOkQdm20uoWIm2xeyltulbaXssd">Enter the Fiat amount that you are willing to spend and select the Cryptocurrency you intend to receive. <strong>Choose </strong><strong>your desired Third-party service providers </strong>and you are able to check the unit price in the Payment Details.</div><p><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20240302165855043nfyVSnOVPaGEA3.jpeg" style="width:863px;height:413px" /></p><p><br /></p><div class="ace-line ace-line old-record-id-SeyodoqwMoSQ6Yxcuo3uQw5ss0y">Note:</div><ol start="1" class="list-number1"><li class="ace-line ace-line old-record-id-PQOedk2K2ocmeaxi4Cjuu0SHsih"><div>The Unit price and Amount of convertible Cryptocurrency (which indicates the real-time quotation) is for reference only. Please refer to the Third-party service provider’s website for the exact exchange rate. </div></li><li class="ace-line ace-line old-record-id-WkkSd0geoosGEgxoT1luLzhGsFd"><div>The <strong>real-time quotation</strong> [next to the wording "Choose Payment Channel"] <strong>will be refreshed within the timeframe</strong> specified by the Third-party service provider.</div></li><li class="ace-line ace-line old-record-id-MiaMd6SiGo4q6gxojphuUKVosrg"><div>You can check the minimum purchase limit for each currency in the input box. Taking USD as an example, the minimum purchase amount is $30 and the maximum purchase amount is $20,000</div></li><li class="ace-line ace-line old-record-id-B6pBdwzBHo8IWAxMRUouHqkcsbf"><div>Adjustment of the purchase limit is solely controlled by Third-party service providers and we do encourage the user to communicate directly with the respective Third-party service providers. You may find their contact information in the Disclaimers section of our Third-party Channel trading website <a href="https://otc.mexc.com/creditCard" rel="nofollow">https://otc.mexc.com/creditCard</a></div></li></ol><p><br /></p><div><div class="ace-line ace-line old-record-id-DqS8dGyqooEaQGxuU4xutGpTsgb"><strong>Step </strong><strong>5:</strong></div><div class="ace-line ace-line old-record-id-XMaEdc6CQoOcS6xCoGYuTiydspg"><strong>Read </strong><strong>carefully on </strong>the Disclaimer to make sure that you understand and agree with the terms and conditions. Then proceed to mark a <strong>Tick </strong>on the <strong>"</strong>Accept and Continue" button. You will be redirected to the Third-party service provider’s official webpage to continue with the purchase.</div><p><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20240302165855288T1zQWDpGdLdHBf.jpeg" style="width:863px;height:413px" /></p></div><br /><div><div class="ace-line ace-line old-record-id-NEEMdCMKuouMgaxAvOaufLFbsP0"><strong>Step 6:</strong></div><div class="ace-line ace-line old-record-id-QMCodCoUaouYeuxgrLVujqwysgg">At the Third-party service provider's official website, fill in your relevant information and follow the purchase process to complete the transaction. After you have successfully purchased cryptocurrency, you can click on the "<strong>Orders</strong>" to view historical transaction records.</div><p><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20240302165856241u74n2xuIqzXmLu.jpeg" style="width:863px;height:255px" /></p></div><br /></div><p></p>
<p>1、What is Funding Rate Mechanism?</p> <p>The funding rate mechanism is the core operating mechanism of MEXC Futures that allows long and short traders to exchange funding fees on a regular basis based on the difference between the market price of perpetual futures and the spot price. When the market is bullish and the funding rate is positive, the long trader of the perpetual futures will pay the funding fee to the short trader. Conversely, when the market is bearish and the funding rate is negative, the short trader of the perpetual futures will pay the funding fee to the long trader.</p> <p> <br /></p> <p>2、Why is the purpose of Funding Rate Mechanism?</p> <p>The main purpose of the funding rate is to allow the market to self-regulate by exchanging funding fees between long and short positions on a regular basis, so that the market price of perpetual futures can be used as an anchor for the spot price.</p> <p>Unlike traditional futures, perpetual futures contracts have no expiration date. Therefore, a trader can hold the position to perpetuity unless it is liquidated. Trading perpetual futures is very similar to trading spot pairs, but in order to keep the market price of perpetual futures from deviating, the funding rate mechanism is required to ensure that the price of perpetual futures is used to anchor the spot price.</p> <p> <br /></p> <p>3、How does Funding Rate Mechanism work?</p> <ul><li> <p>MEXC does not charge any funding fees to the users. The funding fees are charged between users who hold positions on opposing sides.</p> </li><li> <p>The funding fee settlement for all MEXC perpetual futures is preset to take place every 8 hours at 00:00 (UTC), 08:00 (UTC) and 16:00 (UTC).</p> </li><li> <p>Traders are only required to pay or receive a funding fee if they hold a position at the time of funding fee settlement. If you close your position prior to the time of funding fee settlement, you will not be required to pay or receive any funding fee.</p> </li><li> <p>If the funding rate is positive, the long trader will pay the funding fee to the short trader. Conversely, if the funding rate is negative, the short trader will pay the funding fee to the long trader.</p> </li><li> <p>The funding fee paid by the trader will be deducted from the available margin. If a trader's available margin is insufficient, the funding fee will be deducted from the position margin, at which point the liquidation price will become closer to the fair price due to the deduction, thus increasing the risk of liquidation.</p> </li></ul> <p> <br /></p> <p>Notes：</p> <ul><li> <p>Under normal circumstances, the funding fees of all MEXC perpetual futures are settled every 8 hours. However, in the event of extreme market volatility, MEXC reserves the right to adjust the funding fee settlement cycle of perpetual futures, which may differ from the preset 8-hour cycle.</p> </li><li> <p>The funding fee settlement does not affect regular trading activities. However, due to the complexity of processing, there may be some delay in statistics regarding the time of funding fee payment and its release. Any orders executed 15 seconds before or after the time of funding fee settlement may or may not be included in the most recent funding fee settlement. For instance, if a trader opens or closes a position at 08:00:05 (UTC), he may still be charged or paid a funding fee. Please plan your trading time carefully.</p> </li><li> <p>The current rates shown on the page are non-fixed rates and shall be adjusted according to the market dynamics.</p> </li></ul> <p>4、How to check Funding Rate?</p> <p>On Futures page, you will find the funding rate of the current settlement cycle and the time left until the current settlement cycle ends for each futures trading pair.</p> <p><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F202304282319241503ZNMls6IT8ZMJk.png" alt="mceclip0.png" /></p> <p>You can also click on [Funding Rate History] under [Information] to view all funding rates from past settlements of the underlying futures.</p> <p><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20230428231925904R6nKNZGWWsg3tO.png" alt="mceclip1.png" /></p> <p><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20230428231927388atMukEFWFrO9VG.png" alt="mceclip2.png" /></p> <p>5、How to calculate Funding Fees?</p> <p>The funding fee can be easily calculated based on the funding rate.</p> <p> <br /></p> <p>The funding fee calculation for USDT-M futures is as follows:</p> <p>Funding Fee = Position Value x Funding Rate</p> <p>Position Value = Position Size (Token) x Fair Price</p> <p> <br /></p> <p>Example: Trader A holds a long position of 10 BTC in the BTCUSDT futures, while the current fair price is 10,000 USDT and funding rate is 0.01%.</p> <p>Current Position Value = 10 x 10,000 = 100,000 USDT</p> <p>Funding Rate = 100,000 x 0.01％= 10 USDT</p> <p>Since the funding rate is positive (0.01%), the long trader must pay the funding fee to the short trader. Therefore, Trader A (long trader) must pay a 10 USDT funding fee, while the short trader holding the same quantity of futures will receive a 10 USDT funding fee.</p> <p> <br /></p> <p>The funding fee calculation for COIN-M futures is as follows:</p> <p>Funding Fee = Position Value x Funding Rate</p> <p>Position Value = Position Size (Cont.) x Face Value of Futures / Fair Price</p> <p> <br /></p> <p>Example: Trader A holds a long position of 100 cont. of BTCUSD futures with the face value of 1 cont. of BTCUSD futures being 100 USD, while the current fair price is 10,000 USDT and funding rate is 0.01%.</p> <p>Current Position Value = 100 x 100 / 10,000 = 1 BTC</p> <p>Funding Rate = 1 BTC x 0.01% = 0.0001 BTC</p> <p>Since the funding rate is positive (0.01%), the long trader must pay the funding fee to the short trader. Therefore, Trader A (long trader) must pay a 0.0001 BTC funding fee, while the short trader holding the same quantity of futures will receive a 0.0001 BTC funding fee.</p> <p> <br /></p> <p> <br /></p> <p> </p>
<ol><li><span style="font-weight:400">Avg. Buy Price: (Buy Quantity 1 * Buy Price 1 + … + Buy Quantity n * Buy Price n) / (Buy Quantity 1 + ... + Buy Quantity n)</span></li></ol> <p> <br /></p> <ul><li><span style="font-weight:400"> ETF Avg. Filled Price: (Buy Quantity 1 * Buy Price 1+ ... + Buy Quantity n * Buy Price n) / [Buy Quantity 1 / (Multiple of all merging ratios since Purchase 1 + Filled Quantity n / Multiple of all merging ratios since Purchase n)]</span></li><li>If you trade in BTC, ETH and other markets, the system will use the converted Buy Price in USDT for calculation</li></ul> <p> <br /></p> <ol start="2"><li><span style="font-weight:400"> Est. Cost: Position Qty x Avg. Filled Price</span></li></ol> <p> <br /></p> <ol start="3"><li><span style="font-weight:400"> Est. Value: Position Qty x Market Price</span></li></ol> <p> <br /></p> <ol start="4"><li><span style="font-weight:400"> Est. PNL: Est. Value - Est. Cost</span></li></ol> <p> <br /></p> <ol start="5"><li><span style="font-weight:400"> Est. PNL (%): Est. PNL / Est. Cost</span></li></ol> <p> <br /></p> <ol start="6"><li><span style="font-weight:400"> Est. Total Cost: Sum of Est. Cost of each token</span></li></ol> <p> <br /></p> <ol start="7"><li><span style="font-weight:400"> Est. Total Value: Sum of Est. Position Value of each token</span></li></ol> <p> <br /></p> <ol start="8"><li><span style="font-weight:400"> Est. Total PNL = Sum of Est. PNL of each token</span></li></ol> <p> <br /></p> <ol start="9"><li><span style="font-weight:400"> Est. Total PNL (%) = Est. Total PNL / Est. Total Cost</span></li></ol> <p><br /><br /></p> <p><strong>[Note]</strong></p> <p> <br /></p> <ol><li><span style="font-weight:400"> For high-frequency trading, transfers, airdrops, commission rebates, red packets, etc., the estimated PNL might differ from the original calculation. This will not affect the asset amount you have.</span></li></ol> <p> <br /></p> <ol start="2"><li><span style="font-weight:400"> When all positions are closed, then transaction history will be recalculated from the beginning as the average buy price is automatically reset to 0. if you manually edit the average buy price, the system will calculate the PNL according to the manually edited average buy price,and the PNL for newer buy orders will not be calculated.</span></li></ol> <p> <br /></p> <ol start="3"><li><span style="font-weight:400"> After the order is placed, the average filled price will be updated real-time. A 1-2 minute delay can occur.</span></li></ol> <p> <br /></p> <ol start="4"><li><span style="font-weight:400"> If you have spot position history before this feature was updated, the average price of the previous orders will be calculated based on the transaction history after 12:00, April 14, 2022 (UTC). If the average buy price in the transaction history is shown as --, please manually edit your buy price.</span></li></ol> <p> <br /></p> <p> <br /></p> <p><strong>[Risk Warning]</strong></p> <p> <br /></p> <p><span style="font-weight:400">Investing in cryptocurrencies involves high market risk. Choose your investments wisely. MEXC will strive to help users choose high-quality tokens. We are not responsible for any of your investment loss. As a digital asset trading platform that respects community users, MEXC's principles are "authentic, transparent, and fair". In addition, malicious behavior is also prohibited. MEXC provides users with safer, more efficient, and more reliable digital asset trading services.</span></p> <p> <br /></p> <p><strong>Find us on</strong></p> <p><span style="font-weight:400">Medium:</span><a href="https://medium.com/mexcglobal" rel="nofollow"><span style="font-weight:400"> https://medium.com/mexcglobal</span></a></p> <p><span style="font-weight:400">Telegram:</span><a href="https://t.me/MEXCEnglish" rel="nofollow"><span style="font-weight:400"> https://t.me/MEXCEnglish</span></a></p> <p><span style="font-weight:400">Twitter:</span><a href="https://twitter.com/MEXC_Global" rel="nofollow"><span style="font-weight:400"> https://twitter.com/MEXC_Global</span></a></p> <p><span style="font-weight:400">Facebook:</span><a href="https://www.facebook.com/mexcglobal" rel="nofollow"><span style="font-weight:400"> https://www.facebook.com/mexcglobal</span></a></p> <p><span style="font-weight:400">Discord:</span><a href="https://discord.com/invite/4Jrghy7gxs" rel="nofollow"><span style="font-weight:400"> https://discord.com/invite/4Jrghy7gxs</span></a></p> <p><span style="font-weight:400">Instagram:</span><a href="https://www.instagram.com/mexcglobal/" rel="nofollow"><span style="font-weight:400"> https://www.instagram.com/mexcglobal/</span></a></p> <p><span style="font-weight:400">Blog:</span><a href="https://blog.mexc.com/" rel="nofollow"><span style="font-weight:400"> https://blog.mexc.com/</span></a></p> <p> <br /></p> <p><span style="font-weight:400">Buy USDT Instantly here:</span><a href="https://otc.mexc.com/" rel="nofollow"><span style="font-weight:400"> https://otc.mexc.com/</span></a></p> <p><span style="font-weight:400">Refer a friend to enjoy a high rebate, create your personalized invitation link today:</span><a href="https://www.mexc.com/invite" rel="nofollow"><span style="font-weight:400"> https://www.mexc.com/invite</span></a></p> <p> <br /></p> <p><span style="font-weight:400">Enjoy trading on MEXC.</span></p> <p> <br /></p> <p><span style="font-weight:400">The MEXC Team</span></p> <p><span style="font-weight:400">2 November 2022</span></p>