What is Multi-Asset Settlement?

Our multi-asset settlement feature allows you to settle trades in your preferred cryptocurrencies or tokens, directly within the position management section on your trading interface.

Whether you prefer traditional currencies or cryptocurrencies such as USDT, BTC or ETH, we’ve now streamlined the process for your convenience.

What is the Quotation System?

In futures trading, a quotation system defines the reference currency used to display prices, calculate profit and loss (PnL), and settle funding fees. 

At Freedx, our futures market uses USDT (Tether) as the quotation currency.

This means:

• All contract prices are shown in USDT.

• Your unrealized and realized PnL will be calculated in USDT.

• Funding fees between long and short positions are exchanged in USDT.

If I choose to settle in USDT, which currency will I receive the funding fee in?

If you decide to settle your trades in USDT, you will also receive your funding fees in USDT. This means that the fees associated with holding positions or contracts will be paid to you in USDT, ensuring consistency with the chosen settlement currency.

Benefits for Users

• Efficiency
  Reduces the time spent on manual currency conversions or transfers between different accounts.
• Accessibility
  Access to a wide range of settlement options empowers users to manage their positions according to their financial preferences.
• Cost-Effectiveness
  Minimizes fees associated with multiple transactions or conversions through integrated settlement options.
  
  

How to Use It

1. Deposit supported fiat or crypto into your Spot wallet.
2. Move (transfer) those assets into your Futures wallet via the Transfer button.
   
   
   
3. Enter your futures position, margin will be calculated using all the assets in your futures wallet.
4. When closing your position, select a settlement currency (default is USDT).
   
   
   
5. Your realized profit or loss will be credited or debited in that currency, using the conversion formula above if not USDT.

How It Works?

When you close a position with a positive P&L, the system will automatically convert the profit to the currency or fiat which you settle in. 

The method for calculating how much of the target currency / token you will receive is as follows:

USDT Value of Realized P&L / ( Index Price of the Target Currency or Token x ( 1 + ( 1 - Collateral Ratio% ) ) )

For instance:

• Your realized P&L: +3,000,000 USDT
• Settlement currency: BTC
• Index price of BTC: 60,000 USDT
• The conversion ratio follows the logic of the collateral ratio (please refer to Trading Rules)
  
  

In this instance, the realized P&L is +3,000,000 USDT, so please refer to the conversion ratio below.

The BTC you will receive = 1,000,000 / { 60,000 * [ 1 + ( 1 - 99% ) ] } + 1,000,000 / { 60,000 * [ 1 + ( 1 - 98% ) ] } + 1,000,000 / { 60,000 * [ 1 + ( 1 - 97% ) ] } = 49.02274921 BTC