Trading Contracts

General

• All contracts are bilateral. Every position has 2 counterparties. You can find the counterparty to any given position in the trading table, under the Positions tab. You may also see your counterparty's positions.

Perpetual Futures

• Funding rates are settled at 8-hour intervals. We chose 8 hours instead of 1 hour to make it easier to arbitrage funding and lending rates.

• Perps are always settled in USDM.

• Perp funding must be paid in USDM.

• Funding payments are paid automatically from the USDT balance.

• If an account does not have USDT to pay the funding rate, it receives a 24-hour, 0 interest loan. If the loan expires without payment, the whole account is liquidated.

• The account will be liquidated, even if it contains other balances; WCM does not automatically sell existing balances to meet the USDT requirement outside of full liquidation.

• Unrealized PnL counts towards margin, but cannot automatically be used to pay funding fees. You can use the "True Up" action on your Positions tab to easily realize unrealized PnL.

• It is possible for a $10M account to be liquidated due to owing $1 USDT in funding payments. The NAV of the portfolio should not substantially decrease in this scenario relative to USDT (other than the 1% liquidation fee, read more at Liquidation), however the positions would be unwound.

• There are no ADLs on WCM. Unlike CEXs, this is not a risk.

Read the full details for perpetual futures on WCM at Perpetual Futures.

Loans

• Loans are always 10-day durations.

• Borrowers must pay interest and return the loan principle within 10 days. Failure to do so makes the borrower eligible for liquidation.

• By default, loans may be fully or partially extended in 10 day increments by the borrower (upon paying interest and partial principle due).

• A lender may choose to mark a loan as non-extensible, in which case the borrower must pay the interest and loan by the due time. When the loan principle is paid back, if the loan is extensible, the loan is returned to the order book.

• Minimum loan duration is 8 hours.

• Interest payments are made in the underlying asset. An ETH loan pays and receives interest payments in ETH.

• When you lend out capital, you may use your loan as margin. The loan's contribution to available margin is 98% of the notional value of the loan.

• Interest on loans is accrued hourly.

Read the full details for loan contracts on WCM at Lending.

Spot

• All spot listings are ERC-20s.