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USDT Perp Positions Migration to oUSD Portfolio Margining

Peter avatar
Shared by Peter • July 16, 2023

We would like to inform you about the upcoming position migration from USDT margined perpetual futures to portfolio margined (oUSD) perpetual futures and actions that may affect your account.

On Tuesday, July 18th at 06:00 AM UTC, the exchange will undergo a scheduled maintenance lasting 2 hours during which, the following steps will be taken.


Upcoming Migration Steps

1. All trading will be disabled.

2. All open USDT margined perpetual futures positions will be migrated to the portfolio margined contracts (oUSD perpetuals).

3. All USDT margined perpetual futures contracts will be delisted.

4. All accounts will be converted to “PORTFOLIO” account types from “STANDARD” or “LINEAR”.

USDT margined perpetual futures positions will be closed and reopened at the Mark Price of the related oUSD market.


Position Migration Example

Bob has the following open positions:

Market

Amount

Entry Price

Mark Price (USDT Perp)

BTC/USDT Perp

1

30,000

30,500

ETH/USDT Perp

10

2,000

2,070

OX/USDT Perp

100,000

0.03

0.0296

During the migration, Bob’s USDT margined positions will be converted into portfolio margined positions (oUSD perpetuals) inside each respective sub account. The USDT margined positions will be settled and re-opened at the portfolio margined perp’s Mark Price.

Bob’s positions following migration:

Market

Amount

Entry Price

Mark Price (Portfolio Margined Perp)

BTC/USD Perp

1

30,600

30,600

ETH/USD Perp

10

2,100

2,100

OX/USD Perp

100,000

0.0303

0.0303

Bob will have new entries in his trading history:

Market

Side

Price

Executed

BTC/USD Perp

Long

30,600

1

ETH/USD Perp

Long

2,100

10

OX/USD Perp

Long

0.0303

100,000

BTC/USDT Perp

Short

30,600

1

ETH/USDT Perp

Short

2,100

10

OX/USDT Perp

Short

0.0303

100,000

Bob’s PnL:

Market

Amount

Entry Price

Exit Price

PnL (USDT)

BTC/USDT Perp

1

30,000

30,600

600

ETH/USDT Perp

10

2,000

2,100

1,000

OX/USDT Perp

100,000

0.03

0.0303

30

Total

1,630

After migration, once positions have migrated and trading has resumed, PnL from Bob’s positions will be paid in oUSD.


What do I do if I don’t want to migrate?

You can close your USDT margined perpetual futures positions in the relevant markets if you don’t want your USDT margined positions to be migrated.


What are portfolio margined perpetual futures on OPNX?

A brief refresher on various facets of portfolio margined perpetuals can be found below.

Index price

Nothing changes here. The contracts are indexed to USDT pairs, meaning the futures should tend to trade in-line with other USDT margined perpetuals and USDT spot markets.

PnL and Funding Payments

Big changes here. The contracts are still cash settled, however PnL and funding payments are paid in oUSD.

Collateral and margining

Big changes here. oUSD perpetuals take advantage of portfolio margin, meaning cryptocurrencies such as Bitcoin, Ethereum, and OX can be used as collateral to trade. It’s important to note that while oUSD is used for settlements and PnL, crypto collateral is valued using USDT pairs, such as BTC/USDT and ETH/USDT.

In the trading interface you will see your “Collateral Balance”, which is used as margin to trade these portfolio margined contracts.

Collateral Balance = sum(coin balance * index price * LTV)
Index Price = Median of USDT pairs from a set of exchanges (CEX and/or DEX)
LTV = min(base LTV, 1/(LTV factor * sqrt(coin balance) + 1))

Collateral Liquidation Triggers:

Partial Collateral Liquidation (no forfeiture of collateral to the insurance fund):

USDo balance < -4*Collateral Balance

Full Collateral Liquidation (forfeiture of collateral to the insurance fund):

Collateral Balance <= 0

We’re eager to welcome you to the next stage of OPNX and level up your trading experience with oUSD margined perps. For more information on oUSD, please refer to the oUSD Litepaper.