This article outlines the key details regarding the launch of new trading services for Fetch.ai (FET) and SingularityNET (AGIX) tokens. The information is structured to provide a clear understanding of the available products and their core mechanics.
Overview of New Trading Products
On November 27, 2023, a major exchange expanded its offerings by introducing a suite of trading and earning products for FET and AGIX. These new options provide users with more flexibility in how they manage their digital asset portfolios.
The launch was staggered across two separate times to ensure system stability. FET/USDT trading services went live first, followed by AGIX/USDT services two hours later. All products are accessible via the exchange's website, mobile application, and API.
Detailed Breakdown of Available Services
The newly launched services for both FET and AGIX include leverage trading, a Simple Earn product, and perpetual contracts. Each product serves a different purpose, from amplifying trading positions to earning passive income.
Leverage Trading
Leverage trading for both FET/USDT and AGIX/USDT pairs is now available. This feature allows traders to borrow funds to amplify their trading positions, potentially increasing both gains and losses.
The specific margin levels and tier requirements can be found on the exchange’s official margin trading page after the launch. It is crucial for users to understand the risks associated with using leverage before participating.
Simple Earn
The Simple Earn product offers a way for users to potentially generate returns on their idle FET and AGIX holdings. This service provides a straightforward method of earning, often with flexible or locked-term options.
The exact allocation limits and anticipated rates for these new assets were made available on the platform’s Simple Earn section following the launch. Users should review these details to choose a plan that aligns with their financial goals.
Perpetual Contracts (FETUSDT & AGIXUSDT)
Perpetual contracts for both assets have been introduced, settling in USDT. These contracts allow for speculation on the future price of FET and AGIX without an expiry date.
Key Contract Specifications
FETUSDT Perpetual Contract Details:
- Underlying Asset: FET/USDT Index
- Settlement Currency: USDT
- Contract Face Value: 10 FET
- Minimum Price Movement (Tick Size): 0.0001
- Leverage: 0.01x to 20x
- Trading Hours: 24/7
AGIXUSDT Perpetual Contract Details:
- Underlying Asset: AGIX/USDT Index
- Settlement Currency: USDT
- Contract Face Value: 10 AGIX
- Minimum Price Movement (Tick Size): 0.0001
- Leverage: 0.01x to 20x
- Trading Hours: 24/7
Understanding Funding Rates
A critical component of perpetual contracts is the funding rate mechanism, which helps tether the contract price to the spot index price. The rate is calculated periodically and exchanged between long and short position holders.
For the initial stability period after launch, a modified funding rate cap was in effect. The maximum rate was temporarily set at 0.03% until November 28, 2023, at 00:00 (UTC+8). After this time, the standard cap of 1.50% was applied. The first full funding fee collection occurred later that same day.
All other standard trading rules for USDT-margined perpetual contracts, such as limit order specifications, apply to these new pairs. 👉 Explore more strategies for managing perpetual contract positions.
Frequently Asked Questions
What are the main benefits of using perpetual contracts?
Perpetual contracts allow traders to speculate on asset prices without an expiration date. They offer high leverage and include a funding mechanism to keep the contract price aligned with the underlying spot market, providing a continuous trading instrument.
How does the Simple Earn product work with these new tokens?
Simple Earn allows you to allocate your FET or AGIX tokens into a pool to earn potential rewards. You can typically choose between flexible terms for easier access or fixed terms for potentially higher yields, all while your assets are held securely on the platform.
What is the biggest risk associated with leverage trading?
The primary risk of leverage trading is amplified losses. While leverage can magnify profits if the market moves in your favor, it also exponentially increases potential losses if the market moves against your position, possibly exceeding your initial investment.
Why was there a temporary funding rate cap?
A temporary lower funding rate cap is often implemented immediately after a new perpetual contract launches. This practice helps maintain market stability during the initial period of price discovery, preventing excessively high funding fees due to early volatility and premium fluctuations.
Are these products available to all users globally?
Availability can depend on a user's country of residence. It is essential to check your local regulations and the exchange’s terms of service to confirm which products and services are accessible in your region before attempting to trade.
Where can I find the most current trading rules?
The most accurate and up-to-date information on margin tiers, earning rates, and contract specifications is always available directly on the exchange’s official help centers and support pages after the product launch.