Liquid Infinity is a new trading product on Liquid that facilitates Bitcoin contract-for-difference (CFD) trading with up to 100x leverage.
- Up to 100x leverage
- Cross Margin and Isolated Margin* features. When using cross margin, the trader’s margin is shared across all your open [cross margin] positions and backed by your entire wallet’s available balance, which reduces the risk of liquidation. When using isolated margin, traders are able to carve out a portion of the total available balance and allocate it to a specific position. With isolated margin the effects of forced liquidation are limited to only a portion of your balance, the amount allocated to the position. Isolated margin allows for a better control of margin and balances.
- Shared pool of liquidity for supported products as a result of (1) Proprietary MMO technology and (2) Shared order books with spot products.
- Take Profit limit orders instead of market orders.
- Insurance fund.
- Liquid Infinity allows for "right way risk" funding options through fiat or stablecoins - minimizes total collateral required to maintain a leveraged position.
- Fiat- or stablecoin-funded margin is easier to manage due to its linear nature with the trade.
- Liquidation price is worse off if funding currency = base currency as best price execution slippage occurs in a down market.
Japan only. All Liquid users outside of Japan are able to use Liquid Infinity.
ETH, XRP and other pairs to be added soon.
Trading is conducted in BTC denominated quantities, where quantity of 1 represents 1 BTC.
24H and 7 days a week.
Settled at the time of position closure. Unrealized P&L is calculated realtime based on Liquid’s underlying spot market and currently is “marked to order book”. At settlement your profits/losses will be booked to your funding currency account balance.
Minimum contract size
BTC, ETH, XRP, QASH, USD, JPY, EUR, SGD, AUD
Maintenance and Initial Required Margin
Similar to existing products in the industry, Infinity requires the trader to maintain a minimum maintenance margin (MM). Additionally, at the time the position is opened, traders are required to post an initial required margin (IRM). Forced liquidation of a given position happens when the position’s equity falls below the maintenance margin. When forced liquidation happens, the liquidation engine will take over the position. Force liquidated positions are marked at the bankruptcy price.
Infinity uses a step approach when determining the maintenance and initial required margin. Infinity requires 1% of position value as initial margin (IRM) and 0.5% of position value as maintenance margin for up to 50 BTC size of total combined positions. This is equivalent to 100X leverage. As the total combined position increases, both maintenance margin and initial required margin increase in steps of 0.5% for every additional 50BTC added to the position. This step approach to IRM and MM thresholds is necessary to better manage risk resulting from large positions.
Margin can be posted using fiat, any fiat supported by Liquid, or from a number of crypto currencies, including Qash and BTC. When posting margin using crypto, however, a haircut is applied to the value of the crypto when calculating maintenance and initial required margin. See table below.
Margin Funding Value Haircut
Liquidation price is the price at which a position is force liquidated. Essentially, it’s the price that once reached makes position equity equal to maintenance margin. Once the market price moves just below the liquidation price for long positions (or just above for short positions), the maintenance margin is no longer sufficient.
The table below shows what happens during the lifetime of a position until it’s liquidated. In the case shown below, the position is a long position opened at $5,000 for 1 BTC (size) and leverage of 100X. The position is force liquidated when price reaches $4,975.
Liquidation price formula for long positions:
Liquidation Price = Open Price + (MM - IRM) / Position Size
Liquidation price formula for short positions:
Liquidation Price = Open Price - ( MM - IRM ) / Position Size
Force liquidated positions are marked at bankruptcy price. Bankruptcy price is the price that just below which (for long positions) or just above which (for shorts) makes the position equity negative. In general, bankruptcy price can be calculated as follows:
Bankruptcy price formula for long positions
Bankruptcy Price = Open Price - IRM/Position Size
Bankruptcy price formula for short positions
Bankruptcy Price = IRM/Position Size - Open Price
In the example given in the previous table, the bankruptcy price for the long position would be $4,950.
When a position is force liquidated, the Infinity’s liquidation engine will take over the position. The position becomes a firm’s position and managed by the firm. The liquidation engine will then close it in a way so as to minimize market disruption. The trader’s closed P&L will be marked at the bankruptcy price. If the position was actually closed at prices above bankruptcy, the difference is kept by the firm as a form of insurance payment to cover the risk of offering high leverage that might result in negative balances.
Price used for real time P&L purposes. This price is the average of Liquid spot market order book, bids book for long positions and asks book for short.
No physical delivery nor expiration.
Maker/Taker fees are 0.05%/0.05% if fees are paid in Qash, Maker/Taker fees are 0.10%/0.10% otherwise.
Trading fee rebate (until further notice):
With effect from April 1st 2019, a variable rebate of trading fees (“Rebate”) is made available to users at the trading fee rebate rates indicated in the table set out below.
- The Rebate will accrue regardless of fees being paid in Legal Tender, Digital Assets or QASH.
- The Rebate will be credited to each user’s Liquid account in QASH.
- Rebate subject to change or withdrawal at Quoine's discretion.
Trading fee rebate rates according to user's total trading volume for current month (USDe):
Infinity uses floating financing fees and as such are subject to change. Fees are published on our landing pages and trading dashboard. Users are responsible for knowing the fees applied to their existing positions and positions that they are about to open.
Financing fees on existing positions are also subject to change. In other words, the financing fee applied when the position was first open is not necessarily the same fee throughout the life of the position.
Financing fees are charged every 8 hours at 0:00 UTC, 8:00 UTC and 16:00 UTC. For example, if the current fee is 0.1% per day, users get charged 0.1 / 3 % every 8 hours.
Position and Leverage Limits
Liquid Infinity is a high-risk trading product. To mitigate risk for all parties, both maintenance margin and initial required margin will be adjusted upwards by 0.5% for every 50 BTC added to the combined total position. An initial required margin of 1% and a maintenance margin of 0.5% will be applied if the total combined position is below or equal to 50 BTC. Above 50BTC of combined total position, positions will incur additional 0.5% for both IRM and MM.