Savicoin Perpetual Contract FAQ

1. What is contract trading?

SaviCoin contract trading is a digital asset derivative trading service where users do not need to actually hold the corresponding digital assets. Instead, they can trade by predicting the market price direction and potentially earn profits from market fluctuations.

Unlike traditional spot trading, contract trading supports a two-way trading mechanism and leverage. Users can profit by "going long" when the market rises or by "going short" when the market falls.

For example:

• When you predict the BTC price will rise, you can choose to "go long";

• When you predict the BTC price will fall, you can choose to "go short".

The core of contract trading lies in judging market price trends rather than holding the asset itself.

At the same time, SaviCoin offers a flexible leverage mechanism where users only need to invest a certain proportion of margin to trade positions of higher value, thereby improving capital efficiency.

2. Core advantages of SaviCoin contract trading

1. Two-way trading mechanism, profit from both rising and falling markets

SaviCoin contracts support two-way trading.

Users can flexibly choose according to market conditions:

• Go long (bullish)

• Go short (bearish)

Whether the market goes up or down, as long as the direction is correctly predicted, there is an opportunity to earn profits.

Compared to traditional spot trading which only allows "buy low, sell high," contract trading also offers opportunities in volatile and falling markets.

2. Flexible leverage mechanism to improve capital utilization

SaviCoin provides multiple leverage options. Users can adjust leverage according to their risk preferences and trading strategies.

The leverage mechanism allows users to control larger position values with less margin, thereby increasing capital efficiency.

For example:

If a user uses 10x leverage, they only need to put in 100 USDT margin to trade a position worth 1000 USDT.

It is important to note:

Leverage amplifies both profits and losses. Large market fluctuations may cause rapid margin losses and even trigger forced liquidation.

Therefore, the platform recommends users to control leverage reasonably based on their risk tolerance.

3. Low fee mechanism to reduce long-term trading costs

SaviCoin is committed to creating a lower friction, lower cost trading environment for users.

The platform adopts a more user-friendly fee structure, effectively reducing:

• High-frequency trading costs

• Swing trading losses

• Grid strategy fee pressure

• Intraday short-term trading costs

For long-term active traders, fees are often the most overlooked long-term cost.

SaviCoin optimizes trading fees to help users reduce unnecessary capital consumption, allowing more profits to stay in users' hands.

4. No funding fee mechanism (applicable to some products)

Traditional perpetual contracts usually have a funding fee mechanism where users may need to pay additional fees periodically while holding positions.

SaviCoin offers a no funding fee mechanism for some contract products, effectively reducing the pressure of holding positions long-term.

This means:

• Users do not need to frequently bear holding costs;

• Mid-to-long term strategies have lower costs;

• Arbitrage and trend trading are more stable;

• Users can focus more on the market itself.

This mechanism effectively reduces long-term trading costs for:

• Trend traders

• Arbitrage traders

• Long-term position holders

3. SaviCoin contract trading modes

1. Cross margin mode

In cross margin mode, the entire available account balance serves as the margin for the current positions.

When the market fluctuates greatly, the system prioritizes using the account balance to maintain positions, reducing the likelihood of forced liquidation.

Suitable for:

• Low to medium leverage users

• Trend traders

• Long-term position holders

• Users with relatively conservative risk tolerance

2. Isolated margin mode

In isolated margin mode, each position’s margin is independent.

If the loss on a position reaches its margin limit, the system forcibly liquidates that position, limiting the maximum loss to the margin of that position.

Suitable for:

• High-frequency traders

• Short-term traders

• Users needing risk isolation

• Users managing positions precisely

4. What is going long and going short?

Going long

When a user predicts the market price will rise, they can choose to "buy to go long".

If the market price rises later, the user can close the position and earn the corresponding price difference.

Going short

When a user predicts the market price will fall, they can choose to "sell to go short".

If the market price falls later, the user can close the position and also earn the corresponding profit.

Through this two-way trading mechanism, users can find trading opportunities in various market conditions.

5. Important concepts in contract trading

1. Margin

Margin is the capital users need to maintain their positions in contract trading.

The lower the margin, the higher the leverage, but the risk also increases accordingly.

2. Forced liquidation

If a user’s position losses cause the account risk rate to fall below the platform’s requirement, the system may trigger forced liquidation to prevent further losses.

After forced liquidation, users may lose part or all of their margin.

3. Risk rate

Risk rate measures the current risk level of the position.

The lower the risk rate, the more dangerous the position is and the higher the risk of forced liquidation.

Users should closely monitor their account risk rate and reasonably control their positions and leverage.

6. SaviCoin risk control and security mechanisms

To ensure user asset security and stable market operation, SaviCoin has established multiple risk control and security mechanisms, including but not limited to:

• Real-time risk monitoring system

• Forced liquidation risk warning mechanism

• Abnormal trading identification system

• Big data risk control models

• Position and leverage limit mechanisms

• Abnormal volatility protection mechanism

• Multi-layer account security protection

The platform will continue to optimize system performance and risk control capabilities to provide a more stable, secure, and fair trading environment for users.

7. System stability and trading experience

SaviCoin continuously optimizes its underlying matching engine and server architecture to maintain high stability and order processing efficiency even during high volatility.

The platform supports:

• Millisecond-level matching response

• Fast order placement and cancellation

• High concurrency order processing

• Real-time trade feedback

• Multi-terminal synchronized trading

In extreme market conditions, a stable trading system is especially important for user risk control.

8. Risk warning

Digital asset contract trading is a high-risk investment with potentially severe market price fluctuations.

The leverage mechanism may amplify both profits and losses, and extreme market conditions can even lead to the loss of all margin.

Before participating in contract trading, please:

• Fully understand contract rules;

• Understand leverage and forced liquidation mechanisms;

• Reasonably control positions;

• Prudently set leverage levels;

• Trade rationally according to your risk tolerance.

SaviCoin does not make any promises or guarantees regarding users’ trading profits.

Users should independently assess market risks and bear all profit and loss responsibilities arising from their trades.

9. Conclusion

SaviCoin is committed to providing global users with safer, more stable, efficient, and low-friction digital asset contract trading services.

In the future, the platform will continue to optimize:

• Trading depth

• System stability

• Risk control system

• Fund security

• User experience

To build a more professional, transparent, and fair digital asset trading environment for users.