Trading Workflow
U-Margined Perpetual Contracts
6MM supports U-margined perpetual contracts, allowing users to trade perpetual futures settled and margined in stablecoins (e.g. USDT).
This section explains the core trading workflow and key mechanisms involved in placing and managing perpetual contract orders on 6MM.
Contract Overview
Contract Type: U-Margined Perpetual Contracts
Settlement Asset: Stablecoin (e.g. USDT)
No Expiry: Positions do not expire and can be held indefinitely
Mark Price–Based Risk Control: Used for margin calculation and liquidation
Order Types
6MM supports commonly used order types to accommodate different trading strategies:
Market Order
Executes immediately at the best available market price
Prioritizes execution speed over price precision
Suitable for fast entry or exit
Limit Order
Executes only at the specified price or better
Provides price control
May remain open until filled or canceled
Stop Order
Triggers a market or limit order once the trigger price is reached
Commonly used for stop-loss or breakout strategies
Order availability may vary by trading pair and integration mode.
Leverage and Margin
Leverage allows users to control larger positions with less capital
Margin is calculated based on:
Position size
Leverage level
Mark price
Higher leverage increases potential returns but also increases liquidation risk.
Funding Rate Mechanism
Perpetual contracts use a funding rate mechanism to keep contract prices aligned with the spot market.
Funding payments occur at scheduled intervals
If the funding rate is positive:
Long positions pay shorts
If the funding rate is negative:
Short positions pay longs
Funding fees are exchanged directly between traders.
6MM does not collect funding payments as revenue.
Fees and Slippage
Trading Fees
Fees are charged when orders are executed
Fee rates may differ for:
Maker orders
Taker orders
Fee schedules are defined by the partner platform and may vary.
Slippage
Slippage occurs when market liquidity is insufficient to fill an order at the expected price
More common during high volatility or when using market orders
Users can reduce slippage by using limit orders and managing order size.
Position Lifecycle
Funds are allocated to the 合约账户 (Perpetual Account)
An order is placed and matched by the 6MM matching engine
A position is opened upon execution
Margin and PnL update in real time
Funding fees are applied at scheduled intervals
Position is closed manually or via TP/SL
Final PnL is settled to the 合约账户
Risk Management and Liquidation
6MM monitors margin ratios in real time
When margin falls below the maintenance threshold:
Positions may be partially or fully liquidated
Liquidation prices are calculated using the mark price, not the last traded price
This mechanism helps reduce unnecessary liquidations caused by short-term market volatility.
Summary
The U-margined perpetual trading workflow on 6MM is designed to:
Provide familiar and flexible order types
Maintain price alignment through funding rates
Offer transparent fee and settlement mechanisms
Deliver institutional-grade risk control
This structure enables partners to offer professional perpetual trading while maintaining a seamless user experience.
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