💎Perpetual Trade

Perp Trade

Trade perpetual futures on Somnex with up to 50× leverage across 50+ markets. Go long or short without owning the underlying asset, using market/limit/trigger orders and optional take‑profit/stop‑loss.

Perp trading interface

Key concepts

• Collateral & leverage: your collateral (e.g., USDT) backs a larger position size via leverage.

• IMR/MMR: Initial and Maintenance Margin Requirements determine how much equity you need to open and keep positions. IMR = IMF × position notional; MMR = MMF × position notional (per‑market parameters).

• Funding rate: periodic payment between longs and shorts to anchor perp price to spot.

• Borrow fee: hourly fee for borrowed assets from the liquidity pool. Formula: (assets_borrowed / total_assets_in_pool) × 0.01% per hour.

• Mark price & oracle: the UI shows a mark price from PYTH oracle.

Order types

• Market: immediate execution at best available price.

• Limit: execute at your chosen price or better.

• Trigger: conditional orders that place when a trigger price is hit.

Open a position

1. Select a market (e.g., ETH‑USD), choose Long or Short.

2. Pick order type (Market/Limit/Trigger).

3. Enter order size and set leverage with the slider.

4. Optionally set Take Profit / Stop Loss.

5. Confirm the order in your wallet.

Manage risk

• Track Equity, Margin ratio, and MMR; add collateral or reduce size if margin gets tight.

• Mind funding and borrow fees—high utilization increases borrow fee.

• Use stop losses; avoid maxing leverage in volatile markets.

Fees

• Trading fee (fixed): small percentage on open/close.

• Funding rate (dynamic): paid between longs and shorts.

• Borrow fee (dynamic): (assets_borrowed / total_assets_in_pool) × 0.01% per hour.

Example: If 40% of a pool is borrowed → 0.40 × 0.01% = 0.004% per hour (~0.096% per 24h).

Liquidation

Somnex applies risk parameters per market to protect traders and liquidity providers.

Key definitions

• Initial Margin Requirement (IMR): IMR = IMF × position_notional.

• Initial Margin Fraction (IMF): % set per market/asset class.

• Maintenance Margin Requirement (MMR): MMR = MMF × position_notional.

• Maintenance Margin Fraction (MMF): % set per market/asset class.

• Equity Value: unrealized PnL + unrealized fees (funding, borrow, open/close, liquidation) + collateral value.

• Collateral Value: Σ(collateral amounts × price × LTV).

Liquidation condition

A position becomes eligible for liquidation when Equity Value ≤ MMR. The platform may partially or fully reduce the position to restore margin health.