Differences between Coin-M Perpetual Futures and USDT-M Perpetual Futures
1. Different crypto is used as the valuation unit, collateral asset, and calculation of PNL:
USDT-M perpetual futures are priced and valued in USDT. For USDT-M perpetual futures, USDT is used as collateral, and PNL is calculated in USDT. Users can participate in trading various types of futures by holding USDT.
Coin-M perpetual futures are priced and valued in US dollars (USD). For Coin-M perpetual futures, the underlying crypto is used as collateral, and PNL is calculated using the underlying crypto. Users can participate in trading specific types of futures by holding the corresponding underlying crypto.
2. Different contract values:
The value of each contract in USDT-M perpetual futures is based on the corresponding underlying crypto. For example, the face value of BTCUSDT is 0.0001 BTC.
The price of each contract in Coin-M perpetual futures is based on a fixed amount in US dollars. For example, the face value of BTCUSD is 100 USD.
3. Different risks associated with the devaluation of collateral asset:
In USDT-M perpetual futures, the collateral asset required is USDT. When the price of the underlying crypto falls, it does not affect the value of the USDT collateral asset.
In Coin-M perpetual futures, the collateral asset required corresponds to the underlying crypto. When the price of the underlying crypto falls, the collateral assets required for the users' positions increase, and more of the underlying crypto is needed as collateral.