Settlement and delivery
Article 1 In order to regulate the digital currency contract trading on VNBIG platform (hereinafter referred to as the platform), maintain the normal order of contract trading, protect the legitimate rights and interests of platform users, and promote the price discovery, the rules are hereby formulated.
Article 2 Digital currency contract trading refers to the trading activities of standardized future contracts of digital currency, including perpetual contracts and fixed-term contracts, by means of centralized bidding.
Article 3 VNBIG platform manages the contract trading according to the principles of "openness, justice and fairness" and the principles of "correctness, reason and sincerity".
Article 4 These rules shall apply to contract trading carried out on the platform. If no provision is made in these rules, the terms of service of VNBIG and other relevant provisions of VNBIG shall apply.
Article 5 The term "contract product" as used in these rules refers to the standardized contract formulated by the platform, which stipulates the delivery of a certain amount of digital currency at a specific time (or irregularly) in the future
Article 6 Contract product elements mainly include contract abbreviation, contract underlying asset, contract type (linear and inverse), index price, mark price, expiry date (Fixed-term contract), contract face value, delivery method, etc., and there is no expiry date for a perpetual contract.
According to the market demand, the platform can adjust the contract elements.
Article 7 The contract abbreviation includes the name of the underlying asset and the quote currency. A contract that does not use the quote currency as the settlement currency is called an inverse contract, and a contract that USES the quote currency as the settlement currency is called an linear contract.
Article 8 The underlying asset of a contract is a specific digital currency or a weighted average of several digital currencies.
Article 9 Expiry is the last trading day of a fixed-term contract and the date on which asset is delivered. There is no expiry date for a perpetual contract.
Article 10 "Contract" shall be the minimum trading unit when conducting contract trading. The face value of a contract shall be determined by the specific rules of contract products.
Article 11 Mark price is the trigger price used by the platform to calculate the unrealized profit and loss and forced liquidation.
Article 12 Index price is the spot trading price from external platforms. The component trading platforms include GDAX, Bitstamp, Kraken, Itbit, Bittrex, etc. At least two trading platforms are taken at the same time. If there is no price display on all the component platforms, the prices of the two alternative platforms are used to calculate the index. At this time, the prices of the new component platforms need to be smoothed.
Article 13 The current perpetual contract of the platform USES digital currency as margin and return; Fixed-term contracts are settled in cash or digital currency at maturity.
Article 14 The platform shall determine the types of contracts listed on the platform according to the selected contracts, and list corresponding contracts according to different contract types and expiry dates. The reference price on the first day of trading is the last index price.
Article 15 the perpetual contract of the platform will continue to be traded after listing, and will not be terminated unless there is abnormality.
Article 16 when a fixed-term contract expires, it is delisted and no longer available for trading. The platform will continue to list the new contract with other expiry dates.
Article 17 VNBIG platform provides self-developed order matching engine system The trading time of the contract shall be from 00:00 to 24:00 on the expiry date. If the market is closed due to force majeure, the trading time shall not be postponed.
Article 18 Before platform users participate in contract trading, they need to complete knowledge test and answer questions and sign an account opening agreement before opening a VNBIG contract trading account.
Article 19 The user order instruction shall refer to the contract mark price at that time and set the floating range of the limit price.
Article 20 When the portion of a longing orders executed by a user exceeds the number of outstanding short positions, it shall be net long opening; When user's long position opened equals to the short positions it will be long liquidation. When the user made selling orders more than the long positions he owned, it shall be net short opening; When user selling orders equal to the outstanding long positions, it is short covering.
Article 21 The platform stipulates that there can only be one side position holding, long position or short position, for the same contract held by one user.
Article 22 In the case of continuous bidding, orders matching shall be made on the principle of price priority and time priority.
The principle of price priority is: higher price buys preferential to lower price buys, lower price sells preferential to higher price sells.
The principle of time priority is: the early order shall be prior to later orders when the side and price are the same.
Article 23 Once an order placed is filled through the matching system , a deal would be made, and these rules shall come into force immediately. Both parties must acknowledge the result and fulfill the obligation of settlement and delivery, except as otherwise stipulated in these rules. For orders filled in accordance with these rules, the results shall be subject to the data recorded on the platform.
Article 24 The contract trading of the platform provides users with multiple ways of order placing, such as limit order, stop-limit order and market order. The contract trading takes two side, longing and shortselling. Users can place orders in both directions with the margin and commission calculated according to relevant rules of the platform. Principle includes net position principle, maximized order filling and so on.
Article 25 For unrealized profit and loss calculation for positions held by users, the formula is as follows:
Unrealized profit and loss for long position =(1/ entry price -1/ mark price) * number of positions held * face value of the contract
Unrealized profit and loss for short position = (1/ mark price -1/ entry price) * number of positions held * face value of the contract
Unrealized profit and loss ratio = unrealized profit and loss/margin *100%
Article 26 When a user places an order to close a position and the order is filled, the corresponding number of positions held by the user shall be deducted from the total positions. Realized return is included in the current account balance.
Article 27 the realized return at the time of liquidation shall be calculated according to the following formula:
Unrealized profit and loss for long position =(1/ entry price -1/ execution price) * entry quantity * face value of the contract
Unrealized profit and loss for short position = (1/ execution price -1/ entry price) * quantity of open position * face value of the contract
Article 28 The fund exchange timestamps are 08:00 UTC+8, 16:00 UTC+8, and 24:00 UTC+8, respectively. Positions outstanding that have been taken over by the forced liquidation engine do not need participate in the exchange of funds, as detailed in the rules
Article 29 The platform shall formulate relevant rules for the order price and quantity limit per order, the minimum change unit of price. The minimum quantity and other restricted parameters shall be regulated by the platform with reference to the relevant information of specific contract pairs. The purpose of these restrictions is to avoid the occurrence of "forced liquidation", "liquidation loss", or excessive positions triggered by placing an order.
Article 30 When a user holds a position, he may adjust the leverage level or directly adjust the margin. The user shall be obligated to pay close attention to risks at all times and promptly increase the margin or stop losses to avoid forced liquidation.
Article 31 For underlying asset fluctuations caused by force majeure, market accidents, technical failure and major mistake, leading to significant abnormal contract trading results which impacted the normal trading order and market fairness, this platform can take measures including canceling deals, and make announcements to the market.
Article 32, In case of abnormalities caused by accidents due to force majeure events, technical failure and major discrepancies or market manipulation and other reasons, or significant market risk caused by underlying asset soar or slump, the platform can be in accordance with the limits of their authority and procedures take the following risk control measures, and make announcements to the market:
(1) temporarily suspending trading;
(2) temporarily suspending the market;
(3) adjusting the margin standards;
(4) applying limit on order price or quantity;
(5) adjusting the settlement price of the contract;
(6) adjusting the expiry date and delivery method of the contract;
(7) modifying the terms of the contract;
(8) adjusting the position limit of the investor;
(9) restricting the trading of investors' contracts;
(10) requiring investors to liquidate their positions;
(11) forced liquidation of positions;
(12) canceling deals;
(13) other risk control measures.
Article 33 the platform shall not be liable for any abnormal circumstances of contract trading or for any risk control measures taken by the platform.
Article 34 the platform shall release trading information such as real-time market, market history records and public information of contract trading. The platform shall publish the terms and conditions of the contract before listing; information about the contract will not be released after delisting.
Settlement and delivery
Article 35 When opening positions, users shall freeze sufficient margin and commission; When closing a position, the realized profit and loss and the margin will be returned to the user's margin account.
Article 36 According to the types of orders placed by users, it can be divided into taker and maker parties, and the specific commission standards are different. For opening and closing positions on the same day, you can enjoy a certain discount on commission.
Article 37 The digital currency contract of the platform adopts the method of cash delivery, that is, margin and income settlement are both digital currencies.
Article 38 The delivery price of a fixed-term contract is the weighted average price of the mark price of the contract in the last 30 minutes. Within 8 hours after expiry, the platform will automatically calculate the realized return of the positions held based on the delivery price and return it to the user's margin account.
Article 39 Margin system is implemented in VNBIG contract trading. Trading margin includes initial margin and maintenance margin. Initial margin manually added would be the occupied margin. Each order should be calculated in real time the corresponding maximum margin should be frozen. When available margin is insufficient, there might be a failure.
Article 40 VNBIG contract trading adopts the position holding risk limit system, which means that the platform divides different positions according to the number of positions held by users, and the initial margin rate and the maintenance margin rate would also differ. In short, the larger the number of positions held is, the higher the level of margin required is.
Article 41 The VNBIG contract trading adopts the position limit system, which means that the user's position limit for a single contract variety shall not exceed the upper limit stipulated by the platform. Position limits are set and Adjusted by the platform and announced to the market.
Article 42 When VNBIG contract trading implements the forced liquidation system, it means that when the margin occupied by the user is less than the margin maintained, the position will be taken over by the platform's forced liquidation engine. At time when all unfilled orders shall be cancelled and the platform will close the position.
Article 43 VNBIG contract trading adopts the automatic deleveraging system, which means that when the number of positions that are forced to be liquidated cannot be fully traded in the market, the platform will select the users who are in the top of the inverse order according to the pre-determined order to match the liquidated positions. At this point, the user who is automatically reducing the position is equivalent to closing the position at a specific price, but the trading fees will be waived.
Article 44 The platform may take market interruption measures when it discovers that significant abnormal trading behaviors may endanger the security of the platform. At this time, a notice will be issued to the market, including but not limited to the reasons for the market interruption, the time to resume trading, the price of the agreement to close positions and other information.
Article 45 the platform shall focus on monitoring the following abnormal trading behaviors:
(1) Acts suspected of manipulating prices, trading volumes, etc.;
(2) The time, quantity and manner of contract trading are limited by laws, regulations and rules as well as the rules of the platform;
(3) Taking oneself as the counterparty of trading and be involved in self-closing in large quantities or for many times;
(4) Investors who appoint or authorize the same institution or individual to conduct transactions on behalf of the same investor, placing a large number of counter orders or for many times, or trading against each other's;
(5) For a single contract account or two or more contracts suspected of being related, with large amount, continuous, intensive order placing or the place order at a price significantly deviates from the last price disclosed by the market price of the contract;
(6) Placing frequent orders and canceling orders frequently, or canceling orders after placing in large amount, so as to affect the price of contracts or mislead other investors;
(7) Trading in large quantities or frequently at the same price or similar price;
(8) Conducting large or frequent transactions of buying high and selling low;
(9) Placing orders automatically and quickly through the API may seriously affect the security of the trading system of the platform or order;
(10) Cross-market or multi-asset trading activities of a huge amount that lead to large fluctuations in the price or volume of contract trading;
(11) Frequently making inquiries to contract market makers, but the actual trading volume is significantly lower than their inquiry quantity;
(12) A contract market maker USES the contract account designated for market making for non-market making business purposes;
(13) Other abnormal trading behaviors that the platform deems necessary to be monitored.
Article 46 For serious abnormal trading behaviors, the platform may take the following actions against the relevant parties:
- Limit the opening of a position in a contract or contract account
- Limit margin transfers from contract accounts
- Raise the initial margin and maintenance margin level for a contract or all contracts
- Close a position of a contract or all contracts within a specified period
- Apply forced liquidation of a contract or all contracts
- All trading, withdrawal and depositing activities on this platform would be banned
Article 47 the following terms in these rules have the following meanings:
(1) Index price refers to the weighted average price of the price of the underlying asset of the contract on non-VNBIG trading platforms
(2) Mark price refers to the reference price to calculate unrealized profit and loss and liquidation price
1) Opening positions, refers to trading activities that increases positions
2) Closing positions, refers to the trading activities that reduces positions
3) Initial margin, refers to the amount of margin that needs when the user opens a position
4) Maintenance margin, refers to the minimum margin required to maintain the positions
5) The term "funding fee" means that the holder of a position increases or decreases the amount of margin required by the time stamp of fund exchange
6) Limit order means to buy at limit price, or to sell at limit price. The unmatched portion may be cancelled
7) Stop-limit order is the act of sending a limit order when the last price reaches the pre-set trigger price
8) Market order, refers to buying or selling at the best market price, with the quantity that cannot be instantly matched cancelled automatically
9) An inverse contract refers to the contract in which the digital currency of the underlying asset is used as margin and return
10) A linear contract is one in which the quote currency of the contract is used as margin and return
11) A perpetual contract is one that has no expiry.
12) Fixed-term contract is a contract that is due for delivery on the due date
13) Volume refers to the volume of a single side purchase or sale of the same contract.
Article 48 The time specified in these rules shall be subject to the time of the trading host of the platform.
Article 49 If these rules are not clearly stipulated, other related rules shall be implemented. In case of any inconsistency between these rules and the other rules, these rules shall prevail.
Article 50 The right to interpret these rules belongs to VNBIG platform. These rules shall come into effect as of the date of publishment.