KuCoin’s Supplemental Notice on the Optimization of the Isolated Margin Calculation Formula
Dear KuCoin User
KuCoin recently announced updates to the isolated margin calculation formula, along with adjustments to the funding fee settlement time and payment rules for perpetual contracts.
Please note that after the adjustments to funding fee, the isolated margin formula will no longer include funding fees in the maintenance margin calculation.The expected funding fee will be zero. Please review your contract positions carefully, as they will be impacted by the following adjustments:
- Adjusted Margin Rate = Maintenance Margin / Total Position Margin
- Where: Maintenance Margin = Position Maintenance Margin + Liquidation Fee
+ Estimated Funding Fee= Mark Price × Position Size × Contract Multiplier × (Maintenance Margin Rate + Liquidation Fee Rate+ Funding Rate) - Total Position Margin = Initial Margin + Additional Margin + Funding Fee + Unrealized PNL
Note: Prior to the adjustment, contract funding fees still include the aforementioned fees. Please refer to the announcement below for the adjustment schedule.
Related Announcements:
The KuCoin Futures Team
Risk Warning: Futures trading is a high-risk activity with the potential for huge gains and huge losses. Previous gains do not indicate future returns. Severe price fluctuations may result in the forced liquidation of your entire margin balance. This information should not be regarded as investment advice from KuCoin. All trading is done at your own discretion and your own risk. KuCoin is not liable for any losses resulting from Futures trading.
Thank you for your support!
The KuCoin Team
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