Bitget beginner's guide: Understanding Coin-M Futures

Definition and basics of Coin-M Futures

Coin-Margined Futures (Coin-M Futures) are derivative contracts that use the underlying cryptocurrency — such as BTC or ETH — as the denomination, margin, and settlement currency. Key features include:

• Quote currency: USD

• Popular trading pairs: BTCUSD (settled in BTC), ETHUSD (settled in BTC)

• Settlement: All profits and losses are settled in the margin currency (e.g., profits from long BTCUSD positions are settled in BTC).

• Futures types: Perpetual futures (no expiry) and delivery futures (with fixed delivery date)

• Futures terms: Coin-M futures are classified into perpetual futures and delivery futures.

Comparison	Coin-M perpetual futures	Coin-M delivery futures
Maturity	No	Fixed (e.g, BTCUSD-20240628)
Settlement	Funding fee mechanism	Delivered at spot price upon maturity
Best for	Long-term positions and arbitrage	Hedging and institutional hedging

Pros:

• Gains from asset appreciation: Since profits are settled in the underlying currency (e.g., BTC), traders benefit from both price movements and asset appreciation.

• Ideal for hedging spot holdings: Short positions in Coin-M Futures can offset the risk of long spot positions.

• Lower funding rates: Typically lower than those of USDT-M Futures.

Cons:

• Complex calculations: Profits and losses are affected by price volatility of the underlying currency, requiring close monitoring.

• Higher liquidation risk: If the coin price plummets, margin value declines rapidly as well.

Futures trading parameters

Key parameters for Bitget Coin-M Futures:

Parameters	Notes
Leverage	Adjustable (e.g. 10x, 50x, 100x), affecting the margin required and the liquidation price.
Margin mode	Cross margin (all positions share the same margin balance) or isolated margin (each position uses its own margin).
Taker rate	Typically 0.028%–0.042%, depending on account tier.
Maker rate	Typically 0.0072%–0.014%, depending on account tier.
Funding rate	Funding fees are settled every eight hours for perpetual futures positions. Not applicable to delivery futures.
Index price	Calculated based on the spot prices across major exchanges to determine futures value and PnL.

Order rules

Bitget offers various order types to help traders implement flexible strategies:

Order type	Notes
Limit order	An order placed at a specified price (e.g. $60,000 for BTCUSD).
Market order	The order executes immediately at the best available price.

Order execution mechanism

• GTC (Good 'Til Canceled): The order remains active until it is either filled or manually canceled.

• IOC (Immediate or Cancel): The order attempts to fill immediately. Any unfilled portion is automatically canceled.

• FOK (Fill or Kill): The order must be filled in full immediately, or it is entirely canceled.

Example: Let’s take BTCUSD0627 delivery futures as an example: The buyer and seller agree to settle at the delivery price at 4:00 PM on June 27, 2025 (UTC+8). Assuming the delivery price is $70,000, the seller sells 5 BTC at $70,000, and the buyer buys 5 BTC at $70,000. Of course, both the buyer and seller may choose to close their positions at the market price before the delivery date.

Funding fees

Funding fee = position value × funding rate

The funding rate consists of two components: interest rate and premium index.

Bitget calculates the premium index (P) and the interest rate (I) every minute, then calculates a weighted average based on every minute's data over an N*-hour period.

The funding rate is calculated based on the N-hour interest rate and the premium/discount component. An a,b dampener is added.

N = funding fee settlement interval. If funding fees are settled every eight hours, then N = 8. If funding fees are settled every hour, then N = 1.

Funding rate (F) = premium index (P) + clamp (interest rate (I) − premium index (P), a,b)

So, if (I−P) falls within a and b, then F=P+(I–P)=I. In other words, the funding rate will be equal to the interest rate.

The calculated funding rate is then applied to the position value to determine the funding fee a trader pays or receives at the corresponding settlement timestamp.

Click here to learn more about futures funding rates.

Index price

The index price represents the consensus market price of the underlying asset. It is derived from a weighted average of spot prices across major exchanges.

Perpetual futures mark price

Bitget uses the mark price to set the liquidation trigger and calculate unrealized PnL, without affecting the trader's actual PnL. A trader's position will only be liquidated when the mark price reaches the position's liquidation price.

Mark price calculation

Mark price = index price + N-minute moving average

N-minute moving average = moving average [(bid 1 + ask 1) ÷ 2 − index price], updated every second over N minutes.

Delivery futures mark price

Bitget employs a fair mark price approach to prevent undesired deviations between the last traded price and the index price caused by market manipulation or illiquidity, thereby avoiding unintended liquidation of user positions. Bitget uses the mark price to trigger liquidation.

Delivery futures mark price = index price + N-minute moving average

N-minute moving average = moving average [(bid 1 + ask 1) ÷ 2 − index price], updated every second over N minutes.

Note: You may see a positive or negative unrealized PnL immediately after your order is executed. This occurs due to a slight deviation between the mark price and the execution price. This does not mean you have an actual profit or loss.

Risk control and liquidation

Bitget implements comprehensive risk controls to protect investors and maintain market stability.

• Margin rate monitoring: The system issues alerts when your account's margin ratio falls below the maintenance margin threshold.

• Maintenance margin rate (MMR): Calculated based on a tiered system, where the rate increases as your position size increases. Maintenance margin for each position = maintenance margin rate × position value calculated at the current reasonable mark price. The transaction fees required to close a position (taker fees) are also included in the maintenance margin. This is the minimum margin necessary to maintain a position, and if the account balance falls below this threshold, the position will be liquidated.

• Liquidation: If investors fail to add margin promptly, liquidation will be triggered when their MMR reaches 100%. The platform will automatically close the position at the best available market price to minimize losses and maintain platform integrity.

• Auto-Deleveraging (ADL) and Insurance Fund: If a position cannot be fully liquidated, Bitget may trigger ADL or draw from the Insurance Fund to cover the loss.

Coin-M Futures FAQ

1. What is the difference between Coin-M Futures and USDT-M Futures?

• Coin-M Futures are settled in the underlying cryptocurrency (e.g., BTC), so profits and losses are affected by price volatility. USDT-M Futures are settled in USDT, offering more stable and straightforward PnL calculations.

2. How can I avoid liquidation?

• Maintain sufficient margin, set stop-loss orders, reduce leverage, and monitor your risk ratio regularly.

3. Will funding fees affect my positions?

• Yes. For perpetual futures, funding fees are charged every 8 hours. Depending on market conditions, either long or short positions will pay the fee to the other side.
The fee is directly deducted from your account balance.

4. What happens when delivery futures mature?

• Upon maturity, the system will automatically settle positions at the delivery price. Any open positions will be liquidated and settled in the underlying currency.