On the 14th of August, we launched (link needs to be updated) the beta version of our substantially improved version of the prominent Perpetual Swap; the Deribit Perpetual.
Within the first two weeks since the Perpetual beta was launched, it quickly became the dominant product on the Deribit platform. Thanks to the Perpetual, total volume on the exchange went up by more than 50%. Market makers have also shown an increasing level of support. As a result, the Deribit Perpetual trading book has developed into one of the most liquid books in the market with significant size on the bid and offer side.
The Deribit Perpetual provides traders with:
- Low Fees: Charging just 0.075% on market orders, paying 0.025% on limit orders
- Extremely fast trading: Executing transactions in a few milliseconds
- Overload Protection: A flexible system able to deal with any volume
- Price Stability: Continuous payments and other measures keep the Perpetual’s price close to the Bitcoin price
- Fair Liquidation: The closing out of a leveraged trade does not hurt more than it has to.
As from today, the Perpetual also provides traders with 100x leverage.
We are now comfortable to increase the maximum leverage to 100x. This means that for every USD in the account (minus the trading fees), you can take USD 100 of exposure.
Liquidation Fees Increased by 0.05%
Deribit tries to make liquidations of leveraged positions as painless as possible. We do this by using step-wise, incremental liquidations in combination with crediting any funds left over after a (partial) liquidation back to the traders. In most cases, this brings a position back in line or at least returns some funds to the customer. Our competitors will liquidate the position in one go and not return any left-over funds.
Deribit does charge an additional ‘liquidation fee’ to compensate its reserve fund in the case of a liquidation transaction. As of today, this liquidation fee will be increased from 0.10% to 0.15%. We expect this fee increase to cover any additional risks and will allow our reserve fund to continue to grow at a modest pace.
Cross-Margin vs Isolated Margin
Deribit works with “cross-margin” and this means the funds in the account serve to back all outstanding trades. If you want to use isolated margin and apply certain leverage to a single trade, you can use a sub account (link needs to be updated) to isolate the required margin for the trade.