About the Function of Staked Assets Being Used as Futures Margin

AscendEX supports staked assets as futures margin after enabling staked assets as collateral for margin trading. Users can transfer their staked assets as well as the staking rewards into their futures accounts to engage in futures trading. Users can not only receive staking profits, but also use staked assets as collateral to increase earnings while trading futures.

What Are Staked Assets?

Staked assets are assets users invest in AscendEX Staking products, which are displayed in users’ investment accounts.

What’s Futures Margin?

Futures margin refers to the amount of assets users need to allocate as collateral to ensure their fulfillment of contracts when trading futures. AscendEX adopts the multi-asset collateral mechanism to support one or multiple assets as collateral for the trading of multiple pairs. The staked assets supported as futures margin is calculated in USDT after being transferred to the futures account. Collateral = assets* index price * discount rate. 

Please refer to Introduction to Perpetual Futures Contracts Margin to learn more about futures margin.

What’s the Function of Staked Assets Being Used as Futures Margin?

Staked assets being used as futures margin means the assets users invested in AscendEX Staking offerings can be transferred to their futures accounts as collateral for futures trading.

For example, if you invested 10,000 USDT in an AscendEX Staking program. According to the general staking process, the assets of 10,000 USDT will be locked up for a period of time to earn the staking profits. However, with the function of staked assets being used as futures margin, you can transfer the staked assets to your futures account to be used as collateral together with the staking rewards to participate in futures trading. Besides the regular staking earnings, you can also earn trading profits.

Description of the Function:

1.     AscendEX has enabled the function of staked assets being used as futures margin for 16 assets with more coming in the pipeline. Please see below for details:  

Please note: The asset displayed as “XXX-S” (such as BTC-S) means the asset is supported to be used as collateral for futures trading once it’s staked.

AscendEX will enable the function for more assets in the future. Please visit the AscendEX Staking page to check the details of assets available for the function and refer to the articles links below to learn more. 

What Assets Are Supported as Collateral for Futures Trading【PC】

What Assets Are Supported as Collateral for Futures Trading【APP】

2.     Before futures trading, users need to transfer their staked assets to their futures accounts, which also means their staking rewards will be credited to their futures accounts. Please note: The assets transferred will be displayed as “XXX-S” (such as BTC-S). 

For example, if you have participated in BTC Staking and now you want to engage in futures trading. You can transfer your staked BTC AKA, BTC-S from your investment account to your futures account.

3.     The staked assets and staking rewards transferred to the futures account will be used as collateral for your futures account and can be leveraged for futures trading. It should also be noted that if you don’t set the collateral mode, the staked assets transferred will be subject to the cross-margin mode by default. If you invest 10 BTC (assume BTC is priced at 10,000 USDT) in BTC Staking and plan to transfer the assets to your futures account as collateral for futures trading. Based on the discount rate of BTC-S at 97.5%, the amount of staked assets to be transferred as futures margin under BTC-S will be 97,500 USDT (100,000*97.5%). By default, the assets equal to 9,750 USDT will be used as collateral using the cross-margin mode, supporting all the futures transactions in your futures account. If the isolated margin mode is selected, a portion of the assets will be used as collateral for your current futures positions. The specific collateral amount will be subject to the collateral requirements of your current futures positions.

4.     Please refer to “Collateral Info” to check the discount rate, and conversion rate, etc., of specific tokens. Please note: If the asset is displayed as “XXX-S” (such as BTC-S) this means the asset is supported for use as collateral for futures trading once it’s staked.

5.     If users want to unstake the assets they transferred to their futures account as collateral, they need to transfer the staked assets to their investment accounts first before proceeding.

6.     If a forced liquidation occurs, the system will automatically enable the instant unstaking function. Please visit AscendEX Staking page to learn more about instant unstaking and the associated fees.

7.     AscendEX has previously supported staked assets as collateral for margin trading. To date, the platform has enabled staked assets to be transferred to futures, margin, and investment accounts.

Advantages of the Function

1.     Use staked assets to increase earnings while trading futures: You can use staked assets as collateral and expand your earning potential beyond regular staking returns, enabling the assets originally delegated and locked in fixed earnings to participate in futures trading for extra profits.

2.     Increase futures margin to reduce futures trading risks: As a new source of assets for futures margin, staked assets can help users enhance the security of their futures accounts and help reduce futures trading risks.

Please read the “FAQ on Staked Assets Being Used as Collateral for Futures Trading” to learn more details about the function.