U-Based Contract Trading Guide

Dear B9 users:

You will learn about U-standard contract trading from the following content.

In contract trading, you can participate in market price fluctuations and profit from them by going long or short on a contract. If you choose to go long, it means you expect the price of the contract you are buying to rise in the future.

On the B9 trading platform, you can also use leverage when going long or short to hedge risks or profit from volatile market conditions. If you choose to go short, it means you are selling the contract and anticipating that its value will fall in the future.

You can refer to the following steps to start trading on the B9 platform.

1. Transfer USDT to the USDT-based contract account as margin;

2. Select your leverage ratio;

3. Choose the appropriate order direction (buy or sell);

4. Enter the number of contracts you choose to trade.

The following examples will help you better understand how to profit from long or short contract trading:

Long BTCUSDT contract:

Contract positions	Opening price	Closing price	Profit and Loss
1BTC	5000 USDT	5500 USDT	500 USDT

Shorting BTCUSDT contracts:

Contract positions	Opening price	Closing price	Profit and Loss
1BTC	5000 USDT	4500 USDT	500 USDT

In the spot market, traders can only profit from rising asset prices. However, through contracts, you have the opportunity to profit regardless of whether asset prices rise or fall.

How to calculate the yield and rate of return in a U-standard contract?

● Users choose to use the listed price as the price benchmark:

Profit = Number of Positions Held * Direction of Position Opening * (Market Price - Opening Price)

Yield % = Yield / Initial Margin = ((Market Price - Opening Price) * Opening Direction * Number of Positions) / (Number of Positions * Contract Multiplier * Mark Price * Initial Margin Rate) * Initial Margin Rate = 1 / Leverage Ratio

Opening direction: Buy order is 1; Sell order is -1

U-based contract leverage and margin

Contract leverage

B9 supports different maximum leverage ratios (125x) for different contract pairs; details can be viewed on the icon page.

Before opening the position, the user needs to adjust the leverage ratio themselves. If the user does not adjust the leverage ratio, B9

The contract platform has a default leverage ratio of 1x, which users can adjust themselves. The higher the leverage ratio, the smaller the maximum size the user can create.

• Margin

The leverage principle of contract trading is mainly manifested in the margin system of contract trading. That is, when you conduct contract trading, you do not need to pay 100% of the funds. You only need to invest a small amount of funds as collateral for the performance of the contract based on a certain percentage of the contract value. This amount of funds is called margin.

1) Leverage greatly increases the utilization rate of funds, but high returns are accompanied by high risks.

2) The higher the leverage used by the trader, the lower the required margin.

Opening margin = (Number of positions opened × Opening price) / Reasonable margin markup

• Warranty

After a position is established, you can view the current position margin in the "Positions" section on the contract trading page.

The margin allocated to a position can be manually adjusted through the "Add Margin" function; automatic additions are not supported.

How to calculate the liquidation price of a U-standard contract?

Contract liquidation price = Opening price - Opening direction × (Margin × (1 - Liquidation risk rate) - Liquidation fee - Opening fee) / Number of positions

Opening direction: Buy order is 1; Sell order is -1

Thank you for your support!
B9 Crypto Operations Team

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