BINANCE AUSTRALIA DERIVATIVES
Wholesale Client Information Statement
Contracts for Difference (CFD) Products: Perpetual and Delivery USDS-M Futures and Coin-M Futures
Contact Details
Issuer: Oztures Trading Pty Ltd (ABN 77 142 898 324) trading as Binance Australia Derivatives
Registered Office Address: Level 17, 31 Queen Street, Melbourne VIC 3000
Website: https://www.binance.com/en-AU
Email: Oztures@Binance.com
Australian Financial Services Licence (AFSL) number: 425165
Preparation date: 18 August 2022, Version 2
Warning: Binance Australia Derivatives (ABN 77 142 898 324) issues over-the-counter derivatives. References to futures products are references to OTC derivatives. Despite phrases like “order book” and “exchange”, Binance Australia Derivatives only offers OTC derivative products where it is the issuer and counterparty to all trades that you enter into. Trading in derivative products involves the potential for profit as well as the risk of losing substantially more than your initial deposit or account balance. You do not own or have any rights to the underlying instruments – which includes digital currency and any rewards or yields generated from them. You should review this Information Statement, our Wholesale Client Terms of Business and our Privacy Policy before deciding whether to acquire our products. InvestbyBit Pty Ltd (ABN 98 621 652 579) (trading as “Binance Australia”) is a corporate authorised representative of Binance Australia Derivatives and may provide financial services on behalf of Binance Australia Derivatives. Please note that Binance Australia’s crypto spot trading services which are provided through its digital currency exchange that is registered with AUSTRAC, does not constitute a financial service provided on behalf of Binance Australia Derivatives. Derivative products issued by Binance Australia Derivatives are complex, high-risk products and are only available to Wholesale Clients as defined in the Corporations Act 2001. If any information contained in this Wholesale Client Information Statement constitutes general advice, the provider of that general advice is Binance Australia Derivatives, and it does not take into account your objectives, financial situation or needs. Before acquiring our products you should consider their appropriateness having regard to your own objectives, financial situation and needs, or obtain professional financial, legal and/or taxation advice.
1. Important information
Oztures Trading Pty Ltd trading as Binance Australia Derivatives (Binance Australia Derivatives, us, we, our) (ABN 77 142 898 324) is the issuer of the products described in this Wholesale Client Information Statement (Information Statement). Our derivatives products are over-the-counter contracts for difference (CFDs).
Capitalised words and phrases used in this document have defined meanings which are contained in Section 23 (Glossary) of this Information Statement.
If you have any questions about this Information Statement, please do not hesitate to contact us using the contact details set out at the start of this Information Statement.
Your status as a Wholesale Client
This Information Statement has been prepared only for use by persons that are Wholesale Clients and/or Sophisticated Investors.
If you do not meet the eligibility requirements to be a Wholesale Client or a Sophisticated Investor, you will be considered a Retail Client, and you will not be able to acquire any of our products. We do not currently offer our products to Retail Clients.
We assume that, as a Wholesale Client or Sophisticated Investor, you have the necessary level of experience and knowledge to transact with us in relation to our products.
As a Wholesale Client or Sophisticated Investor, you do not receive the same investor protections and disclosure documents as those provided to a Retail Client. This means that you don’t receive protections, such as those provided to Retail Clients under the ASIC Corporations (Product Intervention Order – Contracts for Difference) Instrument 2020/986.
When you open an account with us, you will also be provided with our “Wholesale Client Terms of Business”. It contains the terms and conditions that govern Binance Australia Derivative’s relationship with you. You can obtain a free copy of the Wholesale Client Terms of Business on our website.
We are not required to provide Wholesale Clients or Sophisticated Investors with a Product Disclosure Statement or a Financial Services Guide. The Australian Financial Complaints Authority (AFCA) also has the discretion to exclude complaints lodged by Wholesale Clients and Sophisticated Investors.
It is your responsibility to tell us if you no longer meet the criteria to be categorised as a Wholesale Client or a Sophisticated Investor.
We may, at our absolute discretion and at any time, withdraw your classification as a Wholesale Client or a Sophisticated Investor, and treat you as a Retail Client.
Eligibility to be treated as a Wholesale Client or a Sophisticated Investor
Binance Australia Derivatives can only treat you as a Wholesale Client if you satisfy us that you meet one or more of the following tests:
a) the ‘wealth test’ under section 761G(7) of the Corporations Act;
b) the ‘professional investor test’ under section 761G(7) of the Corporations Act;
c) the ‘large business test’ under section 761G(7) of the Corporations Act;
d) the ‘sophisticated investor test’ under section 761GA of the Corporations Act i.e. you are a Sophisticated Investor; or
e) you are a related body corporate of a body corporate that is a Wholesale Client.
a) Wealth test
Section 761G(7) of the Corporations Act allows us to categorise a client as a Wholesale Client if the client provides us with a copy of a certificate from a Qualified Accountant that states that the client has or controls:
(i) net assets of at least A$2.5 million; or
(ii) gross income for each of the last two financial years of at least A$250,000 a year.
The certificate is valid for two years from the date of issue.
You cannot use our financial products or services in connection with a business for the purpose of the wealth test.
b) Professional investor test
Section 761G(7) of the Corporations Act allows us to categorise a client as a Wholesale Client if the client is:
(i) the holder of an Australian Financial Services Licence whose licence covers the provision of financial services that are not limited to claims handling and settling services;
(ii) a body regulated by the Australian Prudential Regulation Authority (APRA) other than a trustee of a superannuation product;
(iii) a body registered under the Financial Corporations Act 1974 (Cth);
(iv) a trustee of a superannuation product with at least A$10 million in assets;
(v) a person having or controlling at least A$10 million in gross assets (including monies held by an associate or on trust);
(vi) a listed entity or a related body corporate of a listed entity;
(vii) an exempt public authority;
(viii) a person that carries on an investment business that is offered to the public; or
(ix) a foreign entity that would meet one of the above requirements had it been established in Australia.
c) Large business test
Section 761G(7) of the Corporations Act allows us to categorise a client as a Wholesale Client where our financial products or services will be used in connection with a business that is not a small business.
A small business is one that has less than 20 employees – or less than 100 employees if the business is or includes the manufacture of goods.
d) Sophisticated investor test
Section 761GA of the Corporations Act allows us to categorise a client as a Sophisticated Investor if we are satisfied, on reasonable grounds, that the client has previous experience in using financial services and investing in financial products that allows the client to assess:
(i) the merits of the product or service; and
(ii) the value of the product or service; and
(iii) the risks associated with holding the product; and
(iv) the client’s own information needs; and
(v) the adequacy of the information given by the licensee and the product issuer.
In addition, we are required to provide the client with a written statement setting out the reasons we consider that the client satisfied the above criteria, which the client must then acknowledge in writing.
In order to be classified as a Sophisticated Investor, you cannot use our products in connection with a business.
e) Related body corporate of a body corporate that is a Wholesale Client
Section 761G(7) of the Corporations Act allows us to categorise a client as a Wholesale Client if you are a related body corporate of a body corporate that is a Wholesale Client.
Risk Warning
The products described in this Information Statement involve the potential for profit as well as the risk of losing substantially more than your initial deposit. You do not own or have any rights to the underlying instrument – which includes Digital Assets and any rewards or yields generated from them.
It is important that you carefully consider this Information Statement and the Wholesale Client Terms of Business (available free of charge on our website) before you decide whether or not to acquire any of our products.
This Information Statement does not include all of the risks involved with investing in the products we offer or how such risks relate to your personal circumstances. In addition, it does not take into account your personal objectives, financial situation or needs. We recommend that you seek independent financial advice to ensure that a particular product is suited to your financial situation and requirements.
The products described in this Information Statement are intended for people in Australia. It might be illegal for you to acquire our products if you are outside Australia. If you are outside Australia, you should seek legal advice on whether you can acquire our products and only proceed if the advice confirms that you can.
2. What are we authorised to do?
Binance Australia Derivatives is the issuer of the products described in this Information Statement.
We are authorised to give you financial product advice in relation to various deposit and payment products, derivatives, foreign exchange contracts and securities. We are also authorised to deal in relation to those same products. In particular, we are authorised to ‘deal by issuing’ derivatives.
While we are authorised to provide personal advice in relation to derivatives, we will never provide you with personal advice. We may, however, provide you with general advice. There is an important difference between general advice and personal advice. If we provide you with general advice (for example through our website or in this Information Statement), it means that we have not considered or taken into account any of your personal objectives, financial situation and needs. We recommend that you seek independent financial advice to ensure that a particular product is suited to your financial situation and requirements.
We are also authorised to “make a market” for foreign exchange contracts and derivatives. This means that we set our own prices for the products we offer, including the buy (Buy Order) price and the sell (Sell Order) price. The prices we set may diverge significantly from the market price for the underlying instrument.
We offer over-the-counter trading services via our online trading platform. We currently offer two different categories of cryptocurrency CFD products: Stablecoin CFDs (USDS-M Futures) and Cryptocurrency CFDs (Coin-M Futures). These products are explained in more detail below and on our website.
3. Opening a Trading Account
Before you can start trading with us, you must first complete our onboarding process and open a Derivatives Trading Account with us.
Our onboarding process involves Binance Australia Derivatives collecting and verifying certain Know-Your-Client (KYC) documentation from you, including (but not limited to) your full name, date of birth and residential address and documentation to confirm your identity such as a driver’s licence, passport or other personal documents as we may reasonably require. The information and documentation you provide as part of this process is verified using a third-party identity verification provider.
In addition to completing our KYC/onboarding process, you will also need to complete an online application form in order to establish a Derivatives Trading Account. Our online application form includes a link to our Wholesale Client Terms of Business and Privacy Policy, which will apply to the products we offer. In submitting an application form, you will be required to agree to, and acknowledge your acceptance of, these documents. As part of the application process, we will also ask you questions to enable us to determine your suitability to be classified as a Wholesale Client and trade our products. We may decline your application at our sole discretion without providing you with any reasons.
If your application is successful, you will be able to login to the online trading platform and your Derivatives Trading Account using the login credentials that we will assign to your Derivatives Trading Account
Please note that Binance Australia Derivatives does not hold client property under Part 7.8 of the Corporations Act 2001 in any circumstances. Your Derivatives Trading Account notionally reflects the value of the Digital Assets allocated to your Derivatives Trading Account and which are held in the account that you will have open separately with InvestbyBit Pty Limited (Binance Australia) for the purposes of spot trading in Digital Assets (Spot Trading Account). The custody of the Digital Assets held in your Spot Trading Account and your Spot Trading Account are maintained in accordance with the terms applicable to your Spot Trading Account which terms can be found here: Binance Australia Terms and Conditions. Binance Australia does not hold the Digital Assets on behalf of Binance Australia Derivatives.
You authorise and direct Binance Australia Derivatives to withdraw, deduct, apply or otherwise
utilise any of the Digital Assets, held in your Spot Trading Account and which are notionally allocated to your Derivatives Trading Account, in connection with Binance Australia Derivatives’
operation of your Derivatives Trading Account, and in order to enforce other rights that Binance Australia Derivatives has under the Wholesale Client Terms of Business or this Information Statement.
Binance Australia Derivatives will always specify exactly what kinds of stablecoins and other Digital Assets are valid for trading purposes, depending on the terms of each specific product it offers (Prescribed Digital Assets).
4. Products covered by this Information Statement
This Information Statement describes products that are:
- derivatives, because they derive their value from an underlying instrument;
- over the counter (OTC) because they are an agreement between you and us, and there is no central counterparty (like an exchange); and
- a legally binding contract (our Wholesale Client Terms of Business refer to a “Contract” when referring to our products).
When trading our products, the value that you will pay or receive (in USDT (Tether) or BUSD (Binance), or other supported Digital Assets) will depend on whether the value of the underlying instrument you choose moves in or against your favour.
If the value of the underlying instrument moves in your favour and you choose to close out your position, then you will typically make a gain and your Derivatives Trading Account will be credited. If the value of the underlying instrument however moves against you, then you will typically make a loss and your Derivatives Trading Account will be debited. The CFD products we offer require a deposit which is less than the notional trade value (this is why the trade is referred to as “margined” or “leveraged”).
We currently offer two categories of cryptocurrency CFD products: Stablecoin CFDs (USDS-M Futures and Cryptocurrency CFDs (Coin-M Futures).
Both USDS-M and Coin-M Futures Contracts may be perpetual contracts (with no expiration date) or delivery contracts (with a specified expiration date i.e. quarterly).
5. Stablecoin CFDs (USDS-M Futures)
A Stablecoin CFD (USDS-M Futures Contract is an agreement to pay or receive the change in value of the stablecoin, depending on whether the price rises or falls. A USDS-M Futures contract is quoted, collateralised and settled in either USDT or BUSD.
You can trade two types of USDS-M Futures Contracts with us:
- USDS-M Delivery Futures, which have a set (quarterly) expiration date (USDS-M Delivery Futures Contracts). For example, Quarterly USDS-M Delivery Futures Contracts settle at the specified expiration date, i.e. the last Friday of each calendar quarter at 08:00:00 UTC; and
- USDS-M Perpetual Futures, which do not have a set expiration date (USDS-M Perpetual Futures Contracts).
One of the key benefits of USDS-M Futures Contracts is that you can calculate your returns in the relevant stablecoin to which the contract relates (i.e. USDT or BUSD). This makes USDS-M Futures Contracts more intuitive. For example, when you make 500 USDT in profit, you can estimate that the profit is worth approximately $500 - since the value of 1 USDT is pegged closely to 1 USD.
USDS-M Futures Contracts have the following characteristics:
(a) Collateral and settlement: USDS-M Futures are collateralised and settled in either USDT or BUSD.
(b) Expiration: Depending on the USDS-M Futures product that you choose,the products are either perpetual (no expiry) or have a quarterly expiry.
(c) Size Unit: USDS-M Futures use “contract” as a standardised size unit when describing a contract’s position size. For example, BTCUSDT, ETHUSDT and BCHUSDT USDS-M Futures) Contracts represent only one unit of the base asset, similar to the spot markets.
(d) Leverage and Margin: the maximum leverage for USDS-M Futures will vary depending on the symbol chosen and is currently capped at 125x. USDS-M Futures require you to pay a deposit (Initial Margin) which is an amount that is smaller than the trade size (this is why the trade is “margined” or “leveraged”).
(e) Funding Fee: A Funding Fee only applies to USDS-M Perpetual Futures Contracts (i.e. contracts with no expiry). Every eight hours, Funding Fees are either paid to you or by you depending on whether you are long or short, based on differences between the USDS-M Perpetual Futures Contract price and the spot price. Because USDS-M Perpetual Futures Contracts do not settle in the traditional sense, Funding Fees are the mechanism used to ensure that the price of the contract correlates with the prevailing spot price of the underlying instrument. Funding Fees may fluctuate over time. In extreme market conditions, high Funding Fees can mean that it is costly to maintain a long-term position in the market.
(f) Minimum order: the minimum notional value of each USDS-M Futures contact must be no less than the threshold 5 USDT. If the notional value is less than the set threshold of 5 USDT, the order will be rejected. Binance Australia Derivatives may change the minimum threshold from time to time without notice.
You can buy or sell a USDS-M Futures Contract. When you buy, you buy at the “Buy Order” price, and when you sell, you sell at the “Sell Order” price. We set the “Buy Order” price and the “Sell Order” price as a market maker. The prices we set may diverge significantly from the market price for the underlying instrument, which in the case of USDS-M Futures Contracts will be the underlying nominated stablecoin.
The price of our USDS-M Futures Contracts are based on the price of the selected underlying stablecoin, which value is based on the Mark Price. More information on how Mark Price is calculated can be found within section 10 (Mark Price) of this Information Statement. However, you do not own any underlying stablecoin, nor do you trade it on an exchange. USDS-M Futures Contracts are settled in the stablecoin that you have selected to fund your Derivatives Trading Account (either USDT or BUSD).
By entering into a USDS-M Futures Contract, you are either entitled to be paid an amount of the selected stablecoin or required to pay an amount of the selected stablecoin, depending on movements in the price of the contract.
The amount of any profit or loss made on a USDS-M Futures Contract will be the net of:
- the difference between the price of the USDS-M Futures Contract when the position is opened and the price of the USDS-M Futures Contract when the position is closed;
- any margin adjustments in respect of the USDS-M Futures Contract; and
- any Funding Fee relating to the USDS-M Futures contract (i.e. where the contract is a USDS-M Perpetual Futures Contract).
Example – USDS-M Perpetual Futures Contract
Sophie went long with 30,000 USDT worth of BTCUSDT Perpetual Futures Contracts at the current market price of 30,000 with 20x leverage. Sophie was required to deposit 1,500 USDT (not including the trading fee) as collateral (Initial Margin) to open the position.
The next day the price of BTCUSDT fell 2% and is trading now at 29,400. Sophie will see an unrealised negative P/L of -40% (-600 USDT) on her collateral.
Example – USDS-M Delivery Futures Contract
Bob went short with 30,000 USDT worth of BTCUSDT (quarterly 0624)* Delivery Futures Contract at the current market price of 30,000 with 10x leverage. Bob was required to deposit 3,000 USDT (not including the trading fee) as collateral (Initial Margin) to open the position.
The next day the price of BTCUSDT (quarterly 0624) fell 5% and is trading now at 28,500. Bob will see an unrealised positive P/L of 50% (1500 USDT) on his collateral.
*0624 means the contract expires on 24-Jun-22
6. USDS-M Futures Contract Specifications
Size Unit
Binance Derivatives Australia uses “contract” as a standardized size unit when describing a USDS-M Futures Contract’s position size. For instance, BTCUSDT, ETHUSDT and BCHUSDT USDS-M Futures Contracts represent only one unit of the underlying instrument.
Leverage and Margin
The Initial Margin required will be set out on our online trading platform and will be determined by reference to the notional value of the relevant position and the applicable leverage. The maximum leverage for USDS-M Futures varies depending on the symbol chosen and is currently capped at 125x. Maintenance Margin requirements must be met in order to maintain an open position and can be found at: Leverage & Margin of Futures Contracts (or such other webpage as notified by us from time to time).
Binance Australia Derivatives may amend the maximum leverage, Initial Margin and/or Maintenance Margin requirements from time to time in its discretion.
Notional Value
The notional value of a USDS-M Futures Contract is the contract value, being the USDT or BUSD amount of the position (i.e. depending on whether the contract references USDT or BUSD). For example the notional value of 5,000 BTCUSDT Quarterly long is 5,000 USDT.
Unrealised and Realised P/L
“Realised P/L” refers to profits and losses incurred from transactions that have been closed out/settled. “Unrealised P/L” refers to profits and losses associated with open transactions that have not yet been closed-out/settled.
For example, User A purchases (long) 10,000 USDT worth of BTCUSDT USDS-M Perpetual Futures Contracts at 50,000 USDT at UTC 08:00. As at UTC 10:00, the value of the position has increased and User A elects to close-out the position at the current exit price of 55,000 USDT. User A’s profit is calculated as follows:
((1 / Futures Contract Entry Price) - (1 / Futures Contract Exit Price)) * Position Size
( 1 / 50,000 - 1 / 55,000 ) * 10,000 = 0.018182 BTC
Conversion from BTC to USDT = 0.018182 * 55,000 USDT = 1,000 USDT
1,000 USDT will be the “Realised P&L” on close-out of the position. If User A had decided to keep the position open, 1,000 USDT would be the “Unrealised P&L” as at UTC 10:00.
Complete contract specifications of USDS-M Futures Contracts can be found here.
7. Cryptocurrency CFDs (Coin-M Futures)
A Cryptocurrency CFD (Coin-M Futures Contract) is an agreement to pay or receive the change in value of a cryptocurrency, depending on whether the price of the cryptocurrency rises or falls. A Coin-M Futures Contract is quoted, collateralised and settled in a nominated cryptocurrency other than stablecoins, including (but not limited to) Bitcoin (BTC), Ethereum and BNB.
You can trade two types of Coin-M Futures Contracts with us:
- Coin-M Delivery Futures Contracts, which have a set (quarterly) expiration date (Coin-M Delivery Futures Contracts). For example, quarterly Coin-M Delivery Futures Contracts deliver/settle on the last Friday of each calendar quarter at 08:00:00 UTC.
- Coin-M Perpetual Futures Contracts, which do not have a set expiration date (Coin-M Perpetual Futures Contracts).
Coin-M Futures Contracts have the following characteristics:
(a) Collateral and settlement: Coin-M Futures Contracts are collateralised and settled in cryptocurrencies, including (but not limited to) Bitcoin (BTC), Ethereum and BNB. Binance Australia Derivatives enables exposure to a wide range of cryptocurrencies as part of its Coin-M Futures offering. A full list of the cryptocurrencies that you can use is available here.
(b) Expiration: Depending on the Coin-M Futures product that you choose, the products are either perpetual (no expiry) or have a quarterly expiry date.
(c) Contract Multiplier: Coin-M Futures Contracts use the “Contract Multiplier” to represent the value of a Coin-M Futures Contract. The Contract Multiplier for a BTC Coin-M Futures Contract is 100 USD. Meanwhile, altcoin (any cryptocurrency other than Bitcoin) Coin-M Futures Contracts have a multiplier of 10 USD.
(d) Leverage and Margin: The maximum leverage for Coin-M Futures Contracts will vary depending on the symbol chosen and is currently capped at 125x. Coin-M Futures Contracts require you to pay a deposit (Initial Margin) which is an amount that is smaller than the trade size (this is why the trade is “margined” or “leveraged”).
(e) Funding Fee: A Funding Fee only applies to Coin-M Perpetual Futures Contracts (i.e. contracts with no expiry). Every eight hours, Funding Fees are either paid to you or by you depending on whether you are long or short, based on differences between the Coin-M Perpetual Futures Contract price and the spot price. Because Coin-M Perpetual Futures Contracts do not settle in the traditional sense, Funding Fees are the mechanism used to ensure that the price of the contract correlates with the prevailing spot price of the underlying instrument. Funding Fees may fluctuate over time. In extreme market conditions, high Funding Fees can mean that it is costly to maintain a long-term position in the market.
(f) Minimum order: the minimum order for each Coin-M Futures Contact must be no less than 1 contract unit.
You can buy or sell a Coin-M Futures Contract. When you buy, you buy at the “Buy Order” price, and when you sell, you sell at the “Sell Order” price. We set the “Buy Order” price and the “Sell Order” price as a market maker. The prices we set may diverge significantly from the market price for the underlying instrument, which in the case of Coin-M Futures Contracts will be the underlying cryptocurrency.
The prices of our Coin-M Futures Contracts are based on the price of the selected underlying cryptocurrency, whose value will be shown in USD based on the applicable Contract Multiplier. However, you do not own any underlying cryptocurrency or USD, nor do you trade it on an exchange. Coin-M Futures Contracts are settled in the cryptocurrency in which you have selected to fund your Derivatives Trading Account.
By entering into a Coin-M Futures Contract, you are either entitled to be paid an amount of the nominated cryptocurrency or required to pay an amount of the nominated cryptocurrency, depending on movements in the price of the contract.
The amount of any profit or loss made on a Coin-M Futures Contract will be the net of:
- the difference between the price of the Coin-M Futures Contract when the position is opened and the price of the Coin-M Futures Contract when the position is closed;
- any margin adjustments in respect of the Coin-M Futures Contract; and
- any Funding Fee relating to the Coin-M Futures contract (i.e. where the contract is a Coin-M Perpetual Futures Contract).
Example – Coin-M Perpetual Futures Contract
User A purchases 100 BTCUSD Perpetual Futures Contracts with a Contract Multiplier of 100 (100 x 100 USD = $10,000) at $12,000 each. By doing this, User A is essentially selling USD 10,000 and buying an equivalent value of Bitcoin (10,000/12,000 = 0.83 BTC).
Suppose BTCUSD Futures price rises to $14,000, and User A wants to secure profits from the trade. To close the position, User A buys back USD 10,000 worth of BTCUSD Perpetual Futures Contracts and simultaneously sells the equivalent of BTCUSD at an exit price of $14,000 (10,000/14,000 = 0.71 BTC).
Unlike USDS-M Futures Contracts, Realised P/L for Coin-M Futures Contracts is calculated in the respective cryptocurrency (i.e. BTC). In this trade, User A’s profit will be calculated as follows:
Quantity of BTC at Entry - Quantity of BTC at Close = 0.83 - 0.71 = 0.12 BTC.
User A’s Realised P/L on this trade is therefore 0.12 BTC.
Example – Coin-M Delivery Futures Contract
User A purchases 200 BTCUSD Coin-M Delivery Futures Contracts, with a Contract Multiplier of 100 (200 x 100 USD = $20,000) at $10,000 each. By doing this, User A is essentially selling USD 20,000 and buying an equivalent value of BTC (20,000/10,000 = 2 BTC).
Suppose BTCUSD Futures price rises to $14,000, and User A wants to secure profits from the trade. To close the position, User A buys back USD 20,000 worth of BTCUSD Coin-M Delivery Futures Contracts and simultaneously sells the equivalent of BTCUSD at an exit price of $14,000 (20,000/14,000 = 1.43 BTC).
In this trade, User A’s profit will be calculated in BTC as follows:
Quantity of BTC at Entry - Quantity of BTC at Close = 2 - 1.43 = 0.57 BTC.
User A’s Realised P/L on this trade is therefore 0.57 BTC.
Information on applicable Contract Multipliers and trading rules for Coin-M Perpetual Futures and Coin-M Delivery Futures Contracts can be found here.
8. Coin-M Futures Contract specifications
Size Unit
Binance Australia Derivatives uses “contract” as a standardized size unit when describing a Coin-M Futures Contract’s position size. For example, 10 contracts of BTCUSD Quarterly 0925 long and 20 Contracts of BTCUSD Quarterly 0925 short.
Contract Multiplier
The Contract Multiplier represents the value of a Coin-M Futures Contract. Each BTCUSD Coin-M Futures Contract represents 100 USD and so the Contract Multiplier is 100 USD.
For example, the positions referenced in the “Size Unit” section above show 1,000 USD of BTCUSD Quarterly 0925 long (100 USD x 10 contracts) and 2,000 USD of BTCUSD Quarterly 0925 short (100 USD x 20 contracts). Meanwhile, for Altcoin (any cryptocurrency other than Bitcoin) Coin-M Futures Contracts, the multiplier is 10 USD. For example, 1,000 USD of ETHUSD Quarterly 0930 equals 10 USD x 100 contracts.
Notional Value
The notional value of a Coin-M Futures Contract is the contract value denominated in the relevant cryptocurrency referenced in the contract. For example, the notional value of BTCUSD Quarterly 0925 will be denominated in BTC.
The notional value of a Coin-M Futures Contract is calculated by multiplying the contract unit by the Contract Multiplier and divided by the applicable Mark Price. Binance Derivatives uses the notional value to calculate the Margin Requirements, trading fees and Realised P/L.
For example, the notional value of BTCUSD Quarterly 0925 long is calculated as follows (noting the Mark Price below is illustrative only):
(Contract Size x Contract Multiplier) / Mark Price
= (10 Contracts x 100 USD) / 10,104 USD
= 0.09897 BTC
Leverage and Margin
The Initial Margin required will be set out on our online trading platform and will be determined by reference to the notional value of the relevant position and the applicable leverage. The maximum leverage for Coin-M Futures Contracts will vary depending on the symbol chosen and is currently capped at 125x. Maintenance Margin requirements must be met in order to maintain an open position and can be found at: Leverage & Margin of Futures Contracts (or such other webpage as notified by us from time to time).
Binance Australia Derivatives may amend the maximum leverage, Initial Margin and/or Maintenance Margin requirements from time to time in its discretion.
Unrealised and Realised P/L
“Realised P/L” refers to profits and losses incurred from transactions that have been closed out/settled. “Unrealised P/L” refers to profits and losses associated with open transactions that have not yet been closed-out/settled.
For example, when User A opens 10 contracts of BTCUSD Quarterly 0925 long, then, based on the below calculations (noting the Entry Price and the Mark Price below are illustrative only), the Unrealised P/L would be 0.0007 BTC. If User A closes the position, User A is said to have earned 0.0007 BTC of Realised P/L.
Unrealised P/L (BTC)
= Contract Size x Contract Multiplier x (1 / Entry Price - 1 / Mark Price)
= 10 Contracts x 100 USD x (1 / 10,104 USD - 1 / 10,175.8 USD)
= 0.0007 BTC
All contract specifications of Coin-M Futures Contracts can be found here.
9. Differences between Perpetual Futures and Delivery Futures
Expiration
A Delivery Futures Contract (whether a USDS-M Delivery Futures Contract or a Coin-M Delivery Futures Contract) allows a trader to buy or sell the underlying instrument at a predetermined price before a specified period. In other words, Delivery Futures Contracts have a limited lifespan and will expire based on their respective calendar cycle. For instance, our BTCUSDT Quarterly 0624 is a USDS-M Delivery Futures Contract that will expire 3 months after the date that the contract is opened. While Delivery Futures Contracts expire quarterly, you may close out your position at any earlier time throughout the quarter.
On the other hand, a Perpetual Futures Contract (whether a USDS-M Perpetual Futures Contract or a Coin-M Perpetual Futures Contract) , as the name suggests, does not have an expiration date. Therefore, traders do not need to keep track of various delivery months, unlike for Delivery Futures Contracts. For instance, a trader can keep a short position to perpetuity, unless the position is liquidated.
Funding Fees (only applicable to Perpetual Futures Contracts)
As Perpetual Futures Contracts (including USDS-M Perpetual Futures Contracts and Coin-M Perpetual Futures Contracts) do not settle in the traditional sense, there needs to be a mechanism to ensure that the price of the contract correlates with the prevailing spot price of the underlying instrument. This mechanism is also known as Funding Fees. Funding Fees are periodic payments either paid to you or by you based on the difference between perpetual contract markets and spot prices. Therefore, depending on open positions, you will either pay or receive a Funding Fee. Unlike Perpetual Futures Contracts, Delivery Futures Contracts (including USDS-M Delivery Futures Contracts and Coin-M Delivery Futures Contracts) do not carry a Funding Fee. This is favorable to long-term position traders and hedgers as Funding Fees may fluctuate over time. In extreme market conditions, high Funding Fees can mean that it is costly to maintain a long-term position in the market. For instance, Funding Fees across BTC perpetual markets may surge as Bitcoin prices rally - this indicates the imbalance of buying pressure in the market. As such, this effect results in long positions becoming more costly to hold over time.
Funding Fees for both USDS-M Perpetual Futures Contracts and Coin-M Perpetual Futures Contracts, are calculated using the following formula:
Funding Fee = Nominal Value of Positions* × Funding Rate
(*Nominal Value of Positions = Mark Price x Size of a Contract)
Funding Fees are either paid to you or by you every 8 hours currently at 00:00 UTC; 08:00 UTC and 16:00 UTC for all Perpetual Futures Contracts (Funding Times). You will only be required to make, or entitled to receive, Funding Fees in respect of open positions you hold in Perpetual Futures Contracts (including USDS-M Perpetual Futures Contracts and Coin-M Perpetual Futures Contracts) as at the Funding Times. If you do not have an open position at such times, you will not be liable for, or otherwise entitled to receive, any Funding Fees. Moreover, if you close your open positions prior to a Funding Time, you will not pay or receive any Funding Fees in relation to those positions.
There is a 15-second deviation in the actual Funding Times. For example, when a trader opens a position at 08:00:05 UTC, the Funding Fee may still apply to that position.
Funding Fees may vary between USDS-M Perpetual Futures Contracts and Coin-M Futures Contracts. For information as to current Funding Fees for both USDS-M Perpetual Futures Contracts and Coin-M Perpetual Futures Contracts, please refer to the following webpage: Crypto Futures Real-Time Funding Rate
Binance Australia Derivatives reserves the right to amend applicable Funding Fees from time to time in its discretion.
Mark Price
The Mark Price calculation for Perpetual Futures Contracts differs slightly to the calculation for Delivery Futures Contracts. Further detail on how Mark Price is calculated can be found in section 10 (Mark Price) below.
10. Mark Price
Binance Australia Derivatives uses Mark Price as a reference in Forced Liquidations and calculations of Unrealised P/L. Mark Price is an estimated fair value of a contract. Binance Australia Derivatives uses the Mark Price to avoid unnecessary Forced Liquidations that may happen when the market is highly volatile and to combat market manipulation.
Mark Price is calculated slightly differently for Perpetual Futures Contracts and Delivery Futures Contracts and is computed with different formulas and methodologies. Further information on the Mark Price calculation for the different contract types is set out below and on the following webpages: Mark Price and Price Index of Coin-M Contracts; Mark Price in USDⓈ-Margined Futures; Mark Price in USDⓈ-Margined Quarterly Futures
Binance Australia Derivatives reserves the right to change the Mark Price calculations for any of its Perpetual and/or Delivery Futures Contracts from time to time at its discretion.
Mark Price calculation for Perpetual Futures Contracts
The calculation of Mark Price for both USDS-M Perpetual Futures Contracts and Coin-M Perpetual Futures Contracts is intricately linked to Funding Fees and vice versa.
Mark Price for both USDS-M Perpetual Futures Contracts and Coin-M Perpetual Futures Contracts is calculated using a combination of funding data and a basket of price data from multiple spot exchanges.
As Unrealised P/L is the primary driver of Forced Liquidations, it is important to ensure that the Unrealised P/L calculation is accurate to avoid unnecessary Forced Liquidations. The underlying contract for a USDS-M PerpetualFutures Contract and a Coin-M Perpetual Futures Contract is the ‘true’ value of the contract, and an average of the prices on the major markets constitutes the “Price Index” which is the primary component of Mark Price.
The Price Index is a bucket of prices from the major spot market exchanges, weighted by their relative volume. Information as to the Price Index references for each contract type, can be found here: Price Index | Binance Support Binance. Derivatives Australia reserves the right to update the Price Index references from time to time without prior notice.
With respect to Perpetual Futures Contracts, once the Price Index has been computed (which can be considered as the “Spot Price”), the Mark Price can be calculated. Note that Realised P/L is still based on the actual executed market prices (i.e. “Last Price”).
The Mark Price formula with respect to Perpetual Futures Contracts (including USDS-M Perpetual Futures Contracts and Coin-M Perpetual Futures Contracts) is as follows:
Mark Price = Median* (Price 1, Price 2, Contract Price)
Price 1 = Price Index x (1 + Last Funding Fee x (Time Until Funding /8))
Price 2 = Price Index + Moving Average (MA) (5-minute basis)*
*Moving Average (MA) (5-minute basis) = Moving Average (MA) ((Bid1+Ask1)/2- Price Index), which measures every minute in a 5-minute interval
**Median: If Price 1 < Price 2 < Contract Price, then take Price 2 as Mark price.
The Moving Average (MA) component referred to in the above calculation helps to smooth out the price data over a specified period of time by creating a constantly updated average price. This methodology reduces the possibility of unnecessary Forced Liquidations when the market is highly volatile.
For further information with respect to how the Mark Price is determined for Perpetual Futures Contracts, please refer to the following webpages: Mark Price in USDⓈ-Margined Futures | Binance (for USDS-M Perpetual Futures Contracts); and Mark Price of Coin-Margined Perpetual Contracts (for Coin-M Perpetual Futures Contracts).
Mark Price calculation for Delivery Futures contracts
Traditionally, the price of a Delivery Futures Contract will converge with its corresponding spot price as the contract expires. As such, as Delivery Futures Contracts run down towards expiry, the Mark Price of the contract will more closely reflect spot prices, and the Moving Average (MA) Basis component referred to above will no longer be part of the Mark Price calculation. This means that the Mark Price of a Delivery Futures Contract (including a USDS-M Delivery Futures Contract and a Coin-M Delivery Futures Contract) will be computed differently as it reaches the time of expiration.
For further detail on how the Mark Price is determined for Delivery Futures Contracts, including example calculations, please refer to the following webpages: Mark Price in USDⓈ-Margined Quarterly Futures for USDS-M Delivery Futures Contracts); and Mark Price of Coin-Margined Quarterly Contracts for Coin-M Delivery Futures Contracts).
Protective measures in the event of extreme market conditions or price source disruption
In the event of extreme market conditions or deviations in price sources, which may lead to the Mark Price deviating from the spot price (due to, for example, outages of the relevant spot exchanges and/or connectivity problems), Binance Derivatives Australia will take additional protective measures.to reduce poor market performance, as follows:
(a) Single price source deviation: when the latest price of a certain exchange deviates more than 5% from the median price of all price sources, the exchange weight will be set to zero for weighting purposes;
(b) Multi price source deviation: if more than 1 exchange shows greater than 5% deviation, the median price of all price sources will be used to determine the Price Index instead of the weighted average;
(c) Exchange connectivity problem: if the data feed for an exchange cannot be accessed and the relevant exchange has trade information that has been updated in the last 10 seconds, the last available transaction price will be used for the purposes of determining the Price Index. If one exchange has no updates for 10 seconds, the weight of this exchange will be zero when calculating the weighted average; and
(d) Last Price Protected: when it is not possible to obtain a stable and reliable source of reference data for determining the Price Index, for those contracts that have a single source of Price Index, the Price Index will not be updated. Binance Australia Derivatives will use a mechanism called “Last Price Protected" for the purposes of determining the Mark Price and will reference the last available transaction price for the contract in place of the Price Index when calculating Unrealised P/L and Forced Liquidations.
Difference between Mark Price and Last Price
To avoid spikes and unnecessary Forced Liquidations during periods of high volatility, Binance Derivatives Australia uses both Last Price and Mark Price to determine Forced Liquidations.
Last Price refers to the latest transaction price the contract was traded at. In other words, the last trade in the trading history defines the Last Price. It’s used for calculating your Realised P/L.
On the other hand, Mark Price is calculated by reference to a basket of price data from multiple spot exchanges alongside other components (as described above). Forced Liquidation prices and Unrealised P/L are calculated based on the Mark Price.
Risk and leverage are adjusted based on the user’s absolute exposure; the larger the position, the higher the required margin, and the lower the leverage.
A Forced Liquidation is triggered when:
Collateral = Initial Collateral Realised P/L Unrealised P/L < Maintenance Margin
It is important to note that any changes to the Maintenance Margin requirement will directly affect the liquidation price of the relevant open position. To avoid being liquidated, you should ensure to meet all Margin Calls or that you otherwise reduce your positions accordingly.
How to calculate costs required to open a position in USDS-M Futures and Coin-M Futures contracts
You should ensure that you have a minimum amount of funds credited to your Derivatives Trading Account balance before opening a position in any Futures contract that we offer (including USDM-Futures Contracts and Coin-M Futures Contracts). The cost required to open a position includes the Initial Margin and open losses (if any). Open losses occur when the price of a USDS-M or Coin-M Futures Contract goes unfavourably (i.e. Mark Price is lower than the order price for a long order). Binance Derivatives Australia includes open losses as one of the costs required to open a position to avoid Forced Liquidation when traders place an order. If the open loss is not included as one of the costs required to open a position, there is a high probability that a users’ positions will get liquidated immediately once they have placed such an order.
The formula to calculate the cost required to open a position is as follows:
Cost = Initial Margin + Open Loss (if any)
11. Margin obligations
All of your open positions will be subject to margin obligations. You will only be allowed to open and maintain positions in USDS-M and/or Coin-M Futures Contracts by meeting the applicable Initial Margin and Maintenance Margin requirements from time to time.
With respect to USDS-M Futures Contracts, Binance Australia Derivatives currently only accepts USDT and BUSD stablecoins to satisfy Initial Margin and Maintenance Margin requirements. To the extent that you have deposited certain Prescribed Digital Assets to your Derivatives Trading Account other than USDT or BUSD, you may be able to apply the value of such Prescribed Digital Assets to satisfy Initial Margin and/or Maintenance Margin requirements on USDS-M Futures Contracts by selecting “multi-asset mode” through the online trading platform. Prescribed Digital Assets other than USDT or BUSD that are used to satisfy Margin Requirements on USDS-M Futures Contracts when in “multi-asset mode” will receive a value haircut (as determined by Binance Australia Derivatives in its discretion). For further detail on the Prescribed Digital Assets that are currently eligible as margin for USDS-M Futures Contracts as part of “multi-asset mode”, together with detail on applicable value haircuts, please see the “Multi-Assets Info” tab on the following webpage: Leverage & Margin of Futures Contracts. Binance Australia Derivatives reserves the right to change the Prescribed Digital Assets that are eligible as margin for USDS-M Futures Contracts under “multi-asset mode” and/or applicable value haircuts from time to time at its discretion.
With respect to Coin-M Futures Contracts, Binance Australia Derivatives accepts margin in the form of the cryptocurrency referenced in the relevant contract. For example, BTCUSD Perpetual Futures Contracts are margined in BTC. For a list of all cryptocurrencies referenced by Coin-M Futures Contracts, please see the following webpage: Trading Rules | Binance Futures
Initial Margin
Initial Margin represents the amount of Prescribed Digital Assets you are required to deposit to your Derivatives Trading Account in order to open a position in USDS-M Futures or Coin-M Futures Contracts. Initial Margin is typically calculated as a percentage of the notional contract amount and will differ depending on the leverage applied to the position. Currently, the maximum leverage for our products is 125x. The maximum leverage that may be applicable to different contract types is set out on the following webpage: Leverage & Margin of Futures Contracts We may amend maximum leverage requirements from time to time at our discretion.
Maintenance Margin
Maintenance Margin is a specified amount of Prescribed Digital Assets you are required to maintain in your Derivatives Trading Account in order to maintain your open positions. (Maintenance Margin). The Maintenance Margin required is typically a percentage of the notional contract amount. The Maintenance Margin required to hold a position is not a fee, but rather a security deposit that you are required to keep with us while your position(s) is open. The Maintenance Margin required to hold your open position(s) in USDS-M and Coin-M Futures Contracts will vary from the Initial Margin and may depend on the referable underlying instrument.
The Initial Margin and Maintenance Margin requirements are set out on our online trading platform and at the following webpage: Leverage & Margin of Futures Contracts. These Initial Margin and Maintenance Margin requirements are subject to change from time to time at our discretion. A higher Initial Margin may be payable in certain circumstances and Maintenance Margin may increase in the event of adverse market movements in order to keep a position open.
Margin Calls
If the value of an open position moves against you, you may be required to deposit additional Prescribed Digital Assets to your Derivatives Trading Account in order to ensure your Margin Balance does not fall below the required Maintenance Margin (a Margin Call).
Binance Australia Derivatives is not required to make a Margin Call. However, if a Margin Call is made, it will be made via the online trading platform, by email or other electronic means. You are responsible for monitoring your Derivatives Trading Account and for ensuring that your Derivatives Trading Account maintains a sufficient level of margin at all times, especially during volatile periods.
In the event that you do not maintain sufficient levels of Initial Margin and Maintenance Margin, Binance Australia Derivatives will begin to automatically close your open positions without notice to you (see section 12 (Forced Liquidation) of this Information Statement).
Isolated Margin vs Cross Margin modes
You may choose to satisfy Initial Margin and Maintenance Margin requirements on your Derivatives Trading Account either on an isolated basis per contract type (i.e. per each open position you hold in USDS-M Futures Contracts or Coin-M Futures Contracts) (Isolated Margin Mode) or on a net basis across all open positions in a particular contract type (i.e. USDS-M Futures Contracts or Coin-M Futures Contracts) (Cross Margin Mode). Margin applied to satisfy Margin Requirements under USDS-M Futures Contracts cannot be applied to satisfy Margin Requirements under Coin-M Futures Contracts.
If you select Isolated Margin Mode, each open position will be allocated an independent ledger for the purposes of calculating Initial Margin and Maintenance Margin requirements with respect to that open position. In that case, an independent margin balance will apply to each open position and only Prescribed Digital Assets allocated as margin to a particular open position will be utilised in the event of any Forced Liquidation or close-out. Risk is therefore isolated per open position and if Forced Liquidation is triggered for a particular open position, other open positions will not be affected.
If you select Cross Margin Mode, this means that Initial Margin and Maintenance Margin requirements will be calculated on a net basis across all of your open positions that reference the same contract type. For example, in Cross Margin Mode, Initial Margin and Maintenance Margin will be calculated on a net basis across all USDS-M Futures Contracts and/or Coin-M Futures Contracts that reference BUSD and are margined in BUSD, and all open positions in such contracts will have a single margin balance and will have recourse to the same pool of Prescribed Digital Assets provided by you to satisfy such Initial Margin and Maintenance Margin requirements. A Forced Liquidation will therefore impact all of your open positions referencing the same contract type.
See the below examples with respect to Isolated Margin vs Cross Margin modes. Although the examples reference Perpetual Futures Contracts, the scenarios referred to would also be applicable to Delivery Futures Contracts, which are treated in the same way.
a). Example on Isolated Margin USDS-M Perpetual Futures Contract (with 2x Leverage settings)
Current ETHUSDT Market Price = 3,000 USDT
Current BTCUSDT Market Price = 20,000 USDT
Wallet Balance = 5,000 USDT
Using 2x Leverage (for both BTCUSDT, ETHUSDT)
50% Initial Margin
25% Maintenance Margin
If you buy 2 ETHUSDT your total position size = 6,000 USDT
ETHUSDT Initial Margin = 2 x 3000 x 50% = 3,000 USDT (2x leverage)
ETHUSDT Maintenance Margin = 2 x 3,000 x 25% = 1,500 USDT
At the same time,
If you buy 0.2 BTCUSDT your BTCUSDT total position size = 4,000 USDT
BTCUSDT Initial Margin = 0.2 x 20,000 x 50% = 2,000 USDT
BTCUSDT Maintenance Margin = 0.2 x 20,000 x 25% = 1,000 USDT
On Day X
ETHUSDT Market Price = 2,437.50 USDT
BTCUSDT Market Price = 25,000 USDT
ETHUSDT Margin Balance = [3,000 + (2,437.50 – 3,000) x 2] = 1,875
ETHUSDT Margin Ratio = Maintenance Margin / Margin Balance = 1,500 / 1,875 = 80%
**You may receive Margin Call notification for ETHUSDT isolated position
BTCUSDT Margin Balance = 2,000 + (25,000 – 20,000) x 0.2 = 3,000
BTCUSDT Margin Ratio = Maintenance Margin / Margin Balance = 1,000 / 3,000 = 33%
**nothing happens to your BTCUSDT Isolated position
On Day X+1
ETHUSDT Market Price = 2,250 USDT
BTCUSDT Market Price = 20,000 USDT
ETHUSDT Margin Balance = [3,000 + 2 (2,250 – 3,000)] = 1500 =< Maintenance Margin requirement of 1,500.
Once your isolated position of ETHUSDT goes below the Maintenance Margin requirement of 1,500 USDT, Forced Liquidation will occur. Your maximum loss will be capped at Maintenance Margin of 1,500 USDT.
BTCUSDT Margin Balance = [2,000 + 0.2 (20,000-20,000)] = 2,000
BTCUSDT Margin Ratio = Maintenance Margin / Margin Balance = 1000 / 2,000 = 50%
**nothing happens to your BTCUSDT Isolated position
b). Example on Cross Margin USDS-M Perpetual Futures Contract:
Current ETHUSDT Market Price = 3,000 USDT
Current BTCUSDT Market Price = 40,000 USDT
Wallet Balance = 5,000 USDT
Using 2x Leverage (for both BTCUSDT, ETHUSDT),
50% Initial Margin
25% Maintenance Margin
If you buy 2 ETHUSDT, 0.1 BTCUSDT your total position size = 10,000 USDT
Initial Margin = (2 x 3000 + 0.1 x 40,000) x 50% = 5,000 USDT (2x leverage)
Maintenance Margin = (2 x 3000 + 0.1 x 40,000) x 25% = 2,500 USDT
On Day X
ETHUSDT Market Price = 1,062.50 USDT
BTCUSDT Market Price = 10,000 USDT
Margin Balance = [2 x 1,062.5 + 0.1 x 1,000] = 3,125
Margin Ratio = Maintenance Margin / Margin Balance = 2,500 / 3,125 = 80%
**You will receive Margin Call notification
On Day X+1
ETHUSDT Market Price = 750 USDT
BTCUSDT Market Price = 10,000 USDT
Margin Balance = [2 x 750 + 0.1 x 1000] = 2,500 =< Maintenance Margin requirement of 2500
Once your entire portfolio value (2 ETHUSDT+ 0.1 BTCUSDT) goes below the Maintenance Margin requirement of 2,500 USDT, Forced Liquidation will occur. Your maximum loss will be capped at Maintenance Margin of 2,500 USDT
c). Example on Isolated Margin Coin-M Perpetual Futures Contract
In Coin-M Futures Contracts, we use Contract Multiplier (“Cont”)to calculate the position size. For BTCUSD, 1 Cont = 100USD; for ETHUSD, 1 Cont = 10 USD. To calculate the total position size, you divide the current market price of a contract by the Cont.
Current ETHUSD Market Price = 4,000 USD
Current BTCUSD Market Price = 24,000 USD
Suppose Wallet Balance = 10 ETH + 2 BTC
Suppose using 2x Leverage (for both BTCUSD, ETHUSD)
50% Initial Margin
25% Maintenance Margin
If you are long 2 BTC on BTCUSD, your total position size will be calculated as follows:
2 BTC = 24,000 x 2 / 100 = 480 Cont
In this case, your Initial Margin and Maintenance Margin requirements will be as follows:
BTCUSD Initial Margin = 480 Cont x 100/24000 x 50% = 1 BTC
BTCUSD Maintenance Margin = 480 Cont x 100/24000 x 25% = 0.5BTC
At the same time,
If you are long 20 ETH your ETHUSD total position size will be calculated as follows:
20 ETH = 4,000 x 20/10 = 8000 Cont
In this case, your Initial Margin and Maintenance Margin requirements will be as follows:
ETHUSD Initial Margin = 8000 Cont x 10/4000 x 50% = 10 ETH
ETHUSD Maintenance Margin = 8000 Cont x 10/4000 x 25% = 5 ETH
On Day X
ETHUSD Market Price = 3,450 USD (decrease 550 USD)
BTCUSD Market Price = 25,000 USD (Increase 1000 USD)
BTCUSD Margin Balance = [(25000 - 24000) x 2/25000 + 2] = 2.08 BTC
Client Maintenance Margin = 480 Cont x 100/25000 x 25% = 0.48BTC
BTCUSD Margin Ratio = Maintenance Margin / Margin Balance = 0.48 / 2.08= 23%
**nothing happens to your BTCUSD Isolated position, you are safe
ETHUSD Margin Balance = [(3,450 - 4,000) x 20/3,450 + 10] = 6.8116 ETH
Client Maintenance Margin = 8000 Cont x 10/3450 x 25% = 5.797 ETH
ETHUSD Margin Ratio = Maintenance Margin / Margin Balance = 5.797 / 6.8116 = 85.1%
**you will receive a Margin Call (as your Margin Ratio has exceeded 80%) and will need to provide additional Margin or close your position in order to avoid Forced Liquidation.
c). Example on Cross Margin Coin-M Perpetual and Delivery Futures Contracts:
As mentioned above, for all Coin-M Futures Contracts (includig both Coin-M Perpetual Futures Contracts and Coin-M Delivery Futures Contracts), we use “Cont” to calculate the position size. For BTCUSD, 1 Cont = 100USD.
Current BTCUSD 0930 Delivery Market Price = 25,000 USD
Current BTCUSD perpetual Market Price = 24,000 USD
Suppose Wallet Balance = 2 BTC
Suppose using 2x Leverage (for both BTCUSD)
50% Initial Margin
25% Maintenance Margin
If you are long 1 BTC on BTCUSD Perpetual and long 1 BTC on BTCUSD 0930 Delivery, your total position size will be calculated as follows
25,000 + 24,000 / 100 = 490 Cont
In this case, your Initial Margin and Maintenance Margin requirements will be as follows:
BTCUSD Perpetual Initial Margin = 240 Cont x 100/24000 x 50% = 0.5BTC
BTCUSD 0930 Delivery Initial Margin = 250 Cont x 100/25000 x 50% = 0.5BTC
BTCUSD Perpetual Maintenance Margin = 240 Cont x 100/24000 x 25% = 0.25BTC
BTCUSD 0930 Delivery Maintenance Margin = 250 Cont x 100/25000 x 25% = 0.25BTC
On Day X
BTCUSD 0930 Delivery Market Price = 24,000 USD (decrease 1000 USD)
BTCUSD Perpetual Market Price = 23,000 USD (decrease 1000 USD)
Client Margin Balance = [(24000 - 25000)/24000 (23000-24000)/23000 2] = 1.91 BTC
Client Maintenance Margin = (250 Cont x 100/24000 +240 Cont x 100/23000) x 25% = 0.52BTC
BTCUSD Margin Ratio = Maintenance Margin / Margin Balance = 0.52 / 1.91= 27.2%
**nothing happens to your BTCUSD Isolated position, you are safe
12. Forced Liquidation
You are responsible for monitoring your open positions to ensure that the Margin Balance of your Derivative Trading Account does not fall below the required Maintenance Margin.
If the Margin Balance of your Derivatives Trading Account falls below the required Maintenance Margin we will, via the online trading platform, automatically start liquidating (closing) your open positions in respect of that Trading Account as soon as market conditions allow without notice to you until the first of the following occurs:
- the Margin Balance of your Derivatives Trading Account is equal to, or greater than, the required Maintenance Margin for all of your remaining open positions in respect of the Derivatives Trading Account;
- all open positions have been terminated.
This process (Forced Liquidation) is electronic and automatic and we do not actively monitor your positions or Derivatives Trading Account. Accordingly, you should closely monitor all of your open positions.
If you are subject to a Forced Liquidation, a liquidation fee will be charged on the liquidated amount only (and not on the notional value of the position). Current liquidation fees are detailed on the following webpage (or such other website as notified from time to time): Trading Rules | Binance Futures. The liquidation fee may change from time to time.
Example: Alice went long 30,000 USDT of BTCUSDT Perpetual Futures Contracts at the current market price of 30,000 with 20x leverage. Alice was required to deposit 1,500 USDT (not including trading fees) as collateral (Initial Margin) to open the position. The table below describes the details of Alice’s position.
Direction | Notional Value | Initial Margin (20x leverage) | Maintenance Margin | Liquidation Price |
|---|---|---|---|---|
LONG | 30,000 | 1500 (5%) | 120 (0.40%) | 28,620 |
Maintenance Margin = 120
Alice Potential Maximum Loss = 1,380
Alice Potential Maximum Loss % = 1,380/,1500 = 0.92
Liquidation Buffer = 0.92/20 = 4.6%
Liquidation Price = 30,000*(1-0.046)= 28,620
We reserve the right to implement appropriate risk control measures in the event of extreme market volatility, so as to mitigate our losses and/or the losses of our clients. Such measures may include (but shall not be limited to), (a) implementing a “reduce only” restriction with respect to highly leveraged positions, so that positions on existing transactions may be reduced or closed out only and any increase to positions or opening of new positions will be restricted and (b) prohibiting transfers, trading, and other operations with respect to a client’s Derivatives Trading Account.
13. Managing Risks by using Stops and Limits
We offer features on our online trading platform that help you control trading losses, as described below:
Buy Limit order
A buy limit order is an order that you place with a limit price chosen by you (Target Price). The order will only be executed if the market price reaches your Target Price (or better). You may use buy limit orders to buy at a lower price than the current market price. However, there is no guarantee that your buy limit order will be executed. Execution of buy limit orders is, amongst other things, dependent upon market liquidity.
Example: You want to buy 10 BNBBUSD at $500 and the current price is $600. You can place a BNBBUSD buy limit order of $500. When the BNBBUSD price reaches the Target Price or below, your buy limit order will be executed depending on market liquidity. If there are other BNBBUSD buy orders placed ahead of yours, the system will execute those orders first. Your buy limit order will be filled afterward with the remaining liquidity.
Sell Limit order
A sell limit order is an order that you place with a Target Price. The sell limit order will only be executed if the market price reaches your Target Price (or better). You may use sell limit orders to sell at a higher price than the current market price. However, there is no guarantee that your sell limit order will be executed. Execution of sell limits orders is, amongst other things, dependent upon market liquidity and the Target Price being reached.
Example: You want to sell 10 BNBBUSD at $600 and the current price is $500. You can place a BNBBUSD sell limit order of $600. When the BNBBUSD price reaches the Target Price or above, your sell limit order will be executed depending on market liquidity. If there are other BNBBUSD sell orders placed ahead of yours, the system will execute those orders first. Your sell limit order will be filled afterward with the remaining liquidity.
Stop-loss orders (market)
A stop-loss order is a market order that is executed when the market reaches a certain unfavourable price. A stop loss order is designed to limit your loss on a position. However, if the market price changes quickly, your stop loss order may execute at a price that differs from your trigger price.
Example: If BNBBUSD is trading at $600 and you place a stop-loss order with the stop price at $590, this means that if the BNBBUSD price drops to $590, the system will automatically execute the stop loss order (as a market order) at the current market price.
Buy Stop-limit orders
A buy stop-limit order combines the features of a stop loss order and a buy limit order. Once the stop price you select is reached, a buy limit order will automatically be triggered and the order will execute if the market price matches the limit price or better.
When placing a buy stop-limit order, you must select two prices: the stop price, and the limit price. A stop-limit order means that a buy limit order will only be executed if the stop price is reached.
Example: If BNBBUSD is trading at $600 and you place a buy stop-limit order with the stop price at $590, this means that if the BNBBUSD price drops to $590, the system will automatically set up a buy limit order with the limit price you specified (for example, $585). However, there is no guarantee that your orders will be filled. If the market moves too fast, there is a chance your order will remain unfilled.
Sell stop-limit orders
A sell stop-limit order combines the features of a stop loss order and a sell limit order. Once the stop price you select is reached, a sell limit order will automatically be triggered and the order will execute if the market price matches the limit price or better.
When placing a sell stop-limit order, you must select two prices: the stop price, and the limit price. A sell stop limit order means that a sell limit order will only be executed if the stop price is reached.
Example: If BNBBUSD is trading at $600 and you place a sell stop-limit order with the stop price at $700, this means that if the BNBBUSD price increases to $700, the system will automatically set up a sell limit order with the limit price you specified (for example, $720). However, there is no guarantee that your orders will be filled. If the market moves too fast, there is a chance your order will remain unfilled.
Trailing stop orders
A trailing stop order allows you to place a pre-set order at a specific percentage away from the market price when the market swings. It is designed to help you to limit loss and protect gains when a trade does not move in the direction that you consider favourable.
The trailing stop moves by a specified percentage when the price moves favourably. It locks in profit by enabling a trade to remain open and continue to profit as long as the price is moving in the direction that is favourable to you. The trailing stop does not move back in the other direction. When the price moves in the opposite direction by a specified percentage, the trailing stop will close/exit the trade at market price.
Example 1: Placing a sell Trailing Stop Order for a long trade
Assume the current last price of a BTCUSDT Perpetual USDS-M Futures Contract is 10,000 USDT and you place a trailing stop order as follows:
Callback rate: 5%
Activation price: 10,500 USDT
Trigger: Last Price
The trailing stop price is 9,500 USDT when the last price is 10,000 USDT. A new trailing stop price is formed at 9,975 USDT [Last Price* (1 – callback rate)] when the price increases to 10,500 USDT.
The trailing stop price stops when the price moves down. When the price moves to its peak price at 11,000 USDT, a new trailing stop price is formed at 10,450 USDT. When the price moves down, the trailing stop price stops again. A sell order will be executed at market price to close the position when the price moves more than 5%, reaching and exceeding the trailing stop price at 10,450 USDT.
The conditions are met as follows:
Activation Price (10,500 USDT) < Highest Price (11,000 USDT)
Rebound Rate (9.09%) > Callback Rate (5%)
Note: Rebound Rate = (Highest Price – Rebound Price) / Highest Price
= (11,000 – 10,000) / 11,000
= 9.09%
Example 2: Placing a buy Trailing Stop Order for a short trade
Assume the current Mark Price of a BTCUSDT Perpetual USDS-M Futures Contract is 10,500 USDT and you place a trailing stop order as follows:
Callback rate: 3%
Activation price: 10,000 USDT
Trigger: Mark Price
Situation A – Both conditions are met: The Mark Price drops drastically from 10,500 USDT to 9,500 USDT (lowest price) and later increases to 9,800 USDT. The trailing stop order is executed and a buy order is issued at market price as the conditions are met as follows:
Activation Price (10,000 USDT) > Lowest Price (9,500 USDT) ---> Condition is met
Rebound Rate (3.16%) > Callback Rate (3%) ---> Condition is met
Note: Rebound Rate = (Rebound Price – Lowest Price) / Lowest Price
= (9,800 – 9,500) / 9,500
= 3.16%
Situation B – Only one condition is met: The Mark Price drops drastically from 10,500 USDT to 9,900 USDT (lowest price) and later increases to 9,950 USDT. The trailing stop order is not executed and no buy order is issued at market price as only one of the following conditions is met:
Activation Price (10,000 USDT) > Lowest Price (9,900 USDT) ---> Condition is met
Rebound Rate (0.51%) < Callback Rate (3%) ---> Condition is not met
Note: Rebound Rate = (Rebound Price – Lowest Price) / Lowest Price
= (9,950 – 9,900) / 9,900
= 0.51%
14. Conversion
Your Derivatives Trading Account will be denominated in Prescribed Digital Assets which, with respect to USDS-M Futures contracts, will either be USDT or BUSD and, with respect to Coin-M Futures Contracts, will be the Digital Asset in which the relevant Coin-M Futures Contract is denominated (or, in each case, other Digital Assets that we may allow from time to time) .
In order to trade, you will need to allocate sufficient Prescribed Digital Assets to your Derivatives Trading Account in order to meet Initial Margin and Maintenance Margin requirements. You can allocate Prescribed Digital Assets that you hold in the account you maintain with Binance Australia (for spot trading in Digital Assets), to your Derivatives Trading Account.
Binance Australia Derivatives will not hold or exchange fiat for Digital Assets or the Prescribed Digital Assets necessary to acquire the products via our online trading platform nor will Binance Australia Derivatives convert Digital Assets to fiat after you have closed your position or it has otherwise expired or settled. Please note that Binance Australia Derivatives does not hold client property under Part 7.8 of the Corporations Act 2001 in any circumstances. The custody of your Digital Assets is maintained through the Spot Trading Account (see section 3 of this Information Statement).
15. Significant risks
There are a number of risks in trading CFDs, including USDS-M and Coin-M Futures Contracts covered in this Information Statement. These risks may lead to unfavourable financial outcomes for you. Monitoring of any risks associated with our trading facilities is your responsibility. You should seek independent legal, financial and taxation advice prior to commencing trading activities and should not use our services unless you fully understand the products, and the benefits and risks associated with them.
Some of the significant risks associated with trading products offered by us include the following:
Unforeseen Circumstances
If we are unable to perform our obligations to you due to reasons beyond our control then we may suspend our obligations to you. For example, during periods of significant market disturbance it may be impractical or impossible to trade in relevant Digital Asset markets. We will inform you if any of these events occur.
Examples of market disturbance may include but are not limited to:
A. a crash of the online trading platform;
B. regulatory restrictions that lead to the suspension of trading certain instruments; and/or
C. geopolitical events
Market volatility
Digital Asset markets, and foreign exchange markets upon which the value of USD and therefore USD stablecoins is based, are subject to many influences which may result in rapid fluctuations. Because of this market volatility, there is no CFD transaction or stop loss which is available via our online trading platform that can be considered “risk free”.
Given the potential levels of volatility in Digital Asset and foreign exchange markets, it is recommended that you closely monitor your transactions at all times. We offer you ways of managing volatility by working orders. You can manage some of the downside risk by the use of stop limit orders and stop loss orders (see section 13 (Managing Risks by using Stops and Limits) of this Information Statement). For example, you can use a stop loss order where we will attempt to close your position if the price reaches a particular level. However, in a volatile market, there may be a substantial time lag between order placement and execution. This can mean that the entry or exit price may be significantly lower or higher than the price at which the sell (or buy) order (including a stop loss order) was placed. This is known as “gapping”, and Binance Australia Derivatives does not guarantee that a stop loss order will be successful in limiting your downside risk, which may be greater than you initially anticipated.
There may also be a time lag between when you seek to open or close a position and when that position is actually opened or closed ("execution risk"). This could result in the position being opened or closed at a worse price than when you sought to open or close the position, especially where the market for the underlying instrument is volatile or illiquid.
Further, as noted in section 12 (Forced Liquidation) of this Information Statement, we may close out your highly leveraged open positions in the event of extreme market volatility so as to mitigate your losses and/or the losses of Binance Australia Derivatives or otherwise in an attempt to limit any market impact.
Leverage risk
Trading CFDs involves a degree of leverage. You can outlay a relatively small Initial Margin which secures a significantly larger exposure to the underlying instrument, which will either be a USD-based stablecoin or another cryptocurrency. The use of products like this magnifies the size of your trade, so your potential gain and your potential loss is equally magnified.
You should closely monitor all of your open positions. If the market moves against you and you do not have sufficient margin in your Derivatives Trading Account, we may automatically close out your open position(s) (see section 12 (Forced Liquidation) of this Information Statement). Leverage increases the risk that even small adverse movements in the value of the underlying instrument can lead to losses.
Counterparty risk
Given you are dealing with Binance Australia Derivatives as a counterparty to every transaction. This means you will have an exposure to us in relation to each transaction. In all cases, you are reliant on our ability to meet our obligations to you under the terms of each transaction. This risk is sometimes described as counterparty risk.
The products in this Information Statement are not protected by a licensed exchange, also known as a central counterparty. Instead, the products are called over-the-counter derivatives. This means that you contract directly with us, and you are subject to our credit risk. If our business becomes insolvent we may be unable to meet our obligations to you, in which case you will become an unsecured creditor.
We may choose to limit our exposure to our clients by entering into opposite transactions with hedging counterparties as principal in the wholesale market. However, there is also a risk that a hedging counterparty that we deal with may become insolvent. Where this occurs, we may not have recourse to underlying assets and will become an unsecured creditor of the hedging counterparty.
Systems Risks
We rely on technology to provide our online trading platform to you. A disruption to the online trading platform may mean you are unable to trade in any of the products that we offer when you want to, and you may suffer a loss as a result. It may also mean that an existing transaction may be aborted as a result of a technology failure. An example of disruption includes the “crash” of the computer systems used to operate the online trading platform. We manage this risk by having state-of-the-art IT systems and backup measures.
Protocols Risks
The operation of the underlying protocols which govern the operation of Digital Assets, including the Prescribed Digital Assets that we accept as collateral (Underlying Protocols) are open source and may be used, copied, modified or distributed by third parties, and we are not responsible for and cannot guarantee the operation or functionality of the Underlying Protocols.
Fees and charges
It is possible that you enter into a trade with us and the underlying cryptocurrency or the value of USD moves in your intended direction, but you still end up with less than you started after closing your position. This can happen because of the combined effect of the Spread between buy and sell prices, and the negative Funding Fees which could apply on consecutive days that a contract is held open.
Use and Access to our Website
You are responsible for providing and maintaining the means by which you access our website and online trading platform. If you are unable to access our online trading platform, it may mean you are unable to enter into transactions when desired and you may suffer a loss as a result.
We reserve the right to suspend the operation of our website and online trading platform or any part or sections of them at any time and for any reason. In such an event, we may, at our sole discretion (with or without notice), close out your open positions at prices we consider fair and reasonable.
Opportunity cost
Once you have locked in your price you will not be able to take advantage of subsequent favourable rate/price movements (should that occur) in relation to your existing position. On the other hand, you will be protected from any future adverse movements.
Binance Australia Derivatives acting as market maker
We are authorised to make a market for derivatives contracts and foreign exchange contracts. This means we set our own price for the products that we offer. Accordingly, the prices we quote for a contract over an underlying instrument may diverge significantly from any current exchange or market price, or a competitor’s price for that underlying instrument.
In addition, as we are the counterparty to every CFD, if the market moves against you and you lose on a trade, we may directly benefit from that trade.
Binance Australia Derivative’s rights under the Wholesale Client Terms of Business
The Wholesale Client Terms of Business entitle us to, amongst other things, close out, terminate, or amend trades in certain circumstances. Some of the circumstances in which this may occur includes (but is not limited to) where:
- access to the online trading platform is suspended, withdrawn or denied;
- the Margin Balance of your Derivatives Trading Account falls below the required Maintenance Margin;
- regulatory changes and unforeseen circumstances occur, including (but not limited to) incidents of extreme market volatility; and/or
- a material breach of the Wholesale Client Terms of Business occurs.
You should read the Wholesale Client Terms of Business carefully before you start trading in any of our products.
16. The costs in using our products
Please refer to our Website for information about the trading fees, commissions and other charges that may be payable in relation to the products described in this Information Statement. In particular, please refer to the following webpage: Fee Rate
Under the Wholesale Client Terms of Business we may, by giving you notice, introduce new fees and charges and/or increase the trading fees, commissions and any other fees payable in relation to the products described in this Information Statement.
17. How much collateral do you need to trade?
As mentioned in section 11 (Margin Obligations) of this Information Statement, you need to deposit certain Digital Assets with us as Initial Margin in order to open a position.
We require you to deposit a percentage of the notional contract amount as Initial Margin. The amount of Initial Margin will be available to you on the online trading platform. However, Binance Australia Derivatives may also increase the Initial Margin required (thereby reducing leverage) at its own discretion.
18. How do we handle your money?
We do not handle client money, and only accept the Prescribed Digital Assets in order to trade on our online trading platform.
Further, we do not hold client property under Part 7.8 of the Corporations Act 2001 in any circumstances. Prescribed Digital Assets deposited by our clients for the purposes of trading in the products described in this Information Statement are held in accordance with the terms applicable to the client’s Spot Trading Account (see section 3 of this Information Statement).
There is also a counterparty risk that you may lose some or all of your collateral. See section 15 (Significant Risks) of this Information Statement for more information concerning counterparty risk.
Binance Australia Derivatives does not use clients’ Prescribed Digital Assets to hedge derivatives transactions.
If we ever accept client money in future, we will prepare and implement a client money policy in accordance with and as required by Australian law.
19. Terms and Conditions
Our Wholesale Client Terms of Business are included at the bottom of this Information Statement and must be read and accepted before a contract is entered into. If you are outside Australia, there may be other terms and conditions you will be required to accept or acknowledge.
When you use our services you will be bound to our Wholesale Client Terms of Business as amended from time to time, along with any other terms you are required to accept or acknowledge.
We may, by giving you notice, amend our Wholesale Client Terms of Business and you will be bound by the terms of such an amendment unless you terminate your agreement with us.
The information in this Information Statement is subject to change from time to time and is up to date as at the date stated at the start of this Information Statement.
There is no cooling off period for any product offered by Binance Australia Derivatives.
You must provide all information to us which we reasonably require of you to comply with any law in Australia or any other country. In particular, you must provide adequate identification before you can use our products or services. We may delay, block or refuse to enter, adjust or complete a transaction if we believe on reasonable grounds that making the payment may breach any law in Australia or any other country, and we will incur no liability if it does so. We may disclose any information that you provide to a relevant authority where required by any law in Australia or any other country.
You warrant that you are acting on your own behalf when obtaining services from us.
When you use our services, you are promising that you will not breach any law in Australia or any other country.
We may impose volume limits on client Derivatives Trading Accounts, at our sole discretion.
20. Tax implications
CFDs can create tax implications. Generally, if you make a gain attributable to a price fluctuation, that part of the gain is included in your assessable income. Conversely, if you make a loss attributable to a price fluctuation of a currency, that part of the loss is deducted from your assessable income.
However, taxation laws are complex and vary depending on your personal circumstance and the purpose of your currency trading. Accordingly, you should discuss any taxation questions you may have with your tax adviser before using our products or services.
21. What are our different roles?
Oztures Trading Pty Ltd (trading as Binance Australia Derivatives) is the product issuer. This means that we issue the products described in this document, and do not act on behalf of anyone else. Binance Australia Derivatives may pay client referral fees to other companies in the Binance group of companies.
As we do not hold client property, you must first open a separate spot trading account with Binance Australia, before we can onboard you as a client and issue over-the-counter derivatives to you. To open a spot trading account with Binance Australia, please see the following webpage: How to spot trade with AUD.
22. What should you do if you have a complaint?
In the event you have a complaint about us, you can contact us using the details at the start of this Information Statement to discuss your complaint.
We will try and resolve your complaint quickly and fairly.
Please note that if the complaint cannot be resolved to your satisfaction, AFCA has the discretion to exclude complaints lodged by Wholesale Clients and Sophisticated Investors.
23. Glossary
Binance Australia has the meaning given to it in section 3 (Opening a Derivatives Trading Account) of this Information Statement.
Coin-M Delivery Perpetual Futures Contracts has the meaning given to it in section 7 (Cryptocurrency CFDs (Coin-M Futures)) of this Information Statement.
Coin-M Perpetual Futures Contracts has the meaning given to it in section 7 (Cryptocurrency CFDs (Coin-M Futures)) of this Information Statement.
Contract for Difference (CFD) refers to an agreement to pay or receive the change in value of the underlying instrument (e.g. Digital Asset, currency pair, share, index or commodity) depending on whether the price rises or falls.
Corporations Act means the Corporations Act 2001 (Cth) as amended or varied from time to time.
Derivatives Trading Account means your trading account for the trading of financial products which is established in accordance with this Information Statement and the Wholesale Client User Terms of Business.
Digital Assets means a digital representation of value or rights which may be transferred and stored electronically, using distributed ledger technology or similar technology, including, but not limited to, cryptocurrencies, stablecoins, non-fungible tokens and tokenised derivatives of any other digital asset.
Forced liquidation is described in section 12 (Forced Liquidations) of this Information Statement.
Funding Fees are periodic payments that apply to USDS–M Perpetual Futures Contracts and Coin-M Perpetual Futures Contracts. They are either paid to you or owed by you depending on whether you are holding a long or short position in the relevant Digital Assets and based on the difference between perpetual contract markets and prevailing spot prices. Funding Fees are intended to ensure the Perpetualcontract price aligns with the prevailing spot price.
Initial Margin is the specified amount of Prescribed Digital Assets required when you open a new CFDs trading position.
Maintenance Margin means the amount of Prescribed Digital Assets you are required to maintain in your Derivatives Trading Account in order to support your open positions.
Margin Balance in relation to a Derivatives Trading Account means the sum of all Prescribed Digital Assets held in your Derivatives Trading Account plus your unrealised profits (if any) less your unrealised losses (if any) for all of your contracts that are connected to the relevant Trading Account
Prescribed Digital Assets has the meaning given to it in section 3 (Opening a Derivatives Trading Account) of this Information Statement.
Representative includes a director or employee of Binance Australia Derivatives, and a director or employee any company related to Binance Australia Derivatives, as well as any other entity that is appointed as an authorised representative of Binance Australia Derivatives.
Retail Client means a customer or a potential customer of Binance Australia Derivatives who is not a Wholesale Client or a Sophisticated Investor.
Sophisticated Investor means a person who would be a Wholesale Client only through the application of section 761GA of the Corporations Act 2001 (Cth). This requires the person to sign a special Sophisticated Investor letter.
Spot price refers to the price that a currency pair or commodity is quoted at, for an immediate “on the spot” transaction. All prices quoted by us are quoted using the Spot Price.
Spot Trading Account has the meaning given to it in section 3 (Opening a Derivatives Trading Account) of this Information Statement.
Spread is described on our website.
USDS-M Delivery Futures Contracts has the meaning given to it in section 5 (Stablecoin CFDs (USDS-M Futures) of this Information Statement.
USDS-M Perpetual Futures Contracts has the meaning given to it in section 5 (Stablecoin CFDs (USDS-M Futures) of this Information Statement
Wholesale Client has the same meaning as in section 761G of the Corporations Act 2001 (Cth) but does not include a Sophisticated Investor.
Wholesale Client Terms of Business refers to the terms and conditions that you are required to agree to before you can use the products described in this Information Statement. They are attached at the end of this Information Statement, and are incorporated by reference into the Information Statement.
Binance Australia Derivatives’ Wholesale Client Terms of Business
Please refer to the following webpage for a copy of our Wholesale Client Terms of Business: Wholesale Client Terms of Business