The introduction of new financial instruments for digital assets provides traders and investors with more avenues to diversify their strategies and manage their portfolios. XAUT, a gold-backed stablecoin, is now accessible through advanced trading products on major platforms.
This article provides a detailed overview of the newly available XAUT trading options, including leverage trading, perpetual contracts, and Simple Earn products. We will break down the key features, rules, and mechanics to help you understand how to engage with these markets effectively.
Overview of XAUT Trading Products
XAUT, or Tether Gold, is a digital asset where each token represents ownership of one fine troy ounce of physical gold. This provides a unique blend of the stability of a precious metal with the flexibility of a cryptocurrency. The recent integration of XAUT into more sophisticated trading environments marks a significant step in its adoption.
Starting April 9, 2025, at 6:00 PM (UTC+8), the XAUTUSDT perpetual contract became available for trading. Shortly after, at 6:30 PM (UTC+8), leverage trading and Simple Earn products for XAUT went live. These services are accessible across web, mobile app, and API interfaces, ensuring users can engage with the market in the way that suits them best.
Leverage Trading for XAUT
Leverage trading allows users to borrow funds to amplify their trading positions, potentially increasing both gains and losses. For XAUT, leverage trading is available specifically against USDT trading pairs.
The platform employs a tiered margin system to manage risk. This means the amount of leverage available decreases as the size of a position increases. This design helps protect the market and individual traders from excessive volatility and liquidation risks. The specific tiers and borrowing rates are dynamic and should be checked directly on the platform's official margin trading section after the launch.
👉 Check the latest margin tier specifications
Simple Earn with XAUT
For users seeking a more passive approach, Simple Earn products offer a way to generate yield on XAUT holdings. By subscribing to these products, users can earn interest on their idle assets. The platform aggregates user funds and deploys them in various secured lending and financing activities.
The allocation limits, subscription periods, and estimated APY (Annual Percentage Yield) for XAUT Simple Earn are determined by market demand and supply. It is crucial to review the latest product details and rules on the official Simple Earn page to understand the current terms and conditions before participating.
XAUT Perpetual Contract Explained
Perpetual contracts are a type of derivative that allows traders to speculate on the future price of an asset without an expiry date. The XAUTUSDT perpetual contract is settled in USDT and is designed to track the underlying XAUT/USDT spot index price.
Key Contract Specifications
- Contract Underlying: XAUT/USDT Index
- Settlement Currency: USDT
- Contract Face Value: 0.001 XAUT
- Minimum Price Movement (Tick Size): 0.1 USDT
- Leverage Offered: Ranges from 0.01x to 50x
- Trading Hours: 24/7
Understanding the Funding Rate Mechanism
A critical component of perpetual contracts is the funding fee, which ensures the contract price converges with the spot index price. This fee is exchanged between long and short position holders periodically.
The funding rate is calculated every 8 hours using the following formula:Clamp(MA([(Contract Best Bid + Contract Best Ask) / 2 – Spot Index Price] / Spot Index Price – Interest), -1.5%, 1.5%), where Interest is currently 0.
To ensure stability during the initial launch period, a special measure was in place. Until 00:00 (UTC+8) on April 10, 2025, the maximum funding rate was capped at 0.5%. After this time, the cap returned to the standard 1.5%. The platform also reserves the right to adjust the funding rate mechanism discretionarily if significant price deviations occur to maintain market fairness.
Risk Management and Best Practices
Engaging with leverage and derivatives requires a robust risk management strategy. Here are some essential tips:
- Start Small: Begin with lower leverage to understand the product mechanics before committing larger amounts.
- Use Stop-Loss Orders: Always set stop-loss orders to define your maximum acceptable loss on a trade automatically.
- Monitor Funding Rates: Be aware of the timing and amount of funding fees, especially if holding positions for extended periods.
- Stay Informed: Keep abreast of market news and events that could impact the price of gold and, consequently, XAUT. 👉 Explore more advanced trading strategies
Frequently Asked Questions
What is XAUT?
XAUT is a digital asset issued by Tether that represents ownership of one fine troy ounce of physical gold stored in a secure vault. It combines the value stability of gold with the transferability of a cryptocurrency.
When did XAUT leverage and perpetual trading start?
The XAUTUSDT perpetual contract trading began on April 9, 2025, at 6:00 PM UTC+8. Leverage trading and Simple Earn products for XAUT followed shortly after at 6:30 PM UTC+8 on the same day.
What is the funding fee for the XAUT perpetual contract?
The funding fee is a periodic payment between long and short traders to tether the contract price to the spot price. It is calculated every 8 hours, with a maximum rate of 1.5% (which was temporarily capped at 0.5% during the first day of trading).
Can I earn interest on my XAUT?
Yes, through Simple Earn products. You can subscribe your XAUT to earn interest, with the rates and terms detailed on the platform's official Simple Earn page.
What leverage is available for XAUT trading?
Leverage of up to 50x is available for the XAUTUSDT perpetual contract. For spot margin trading, the available leverage depends on your portfolio size and the specific tiered margin rules in effect.
How is the XAUT perpetual contract priced?
The contract is priced based on the XAUT/USDT index, which reflects the spot market price of XAUT. The contract's value is 0.001 XAUT, and it is quoted in USDT.