The cryptocurrency derivatives market is constantly evolving, with exchanges refining their product offerings to improve clarity, consistency, and user experience. In line with this trend, a recent update introduced new standardized perpetual contracts for major digital assets—ADA, BNB, DOGE, DOT, and FIL—while phasing out older variants tied to USDT. This change streamlines naming conventions and enhances trading efficiency across platforms.
This article explores the transition from USDT-denominated perpetual swaps to USD-settled contracts, detailing key differences in contract specifications, fee structures, and settlement procedures. Whether you're an active trader or a long-term investor, understanding these updates ensures smoother navigation of the evolving derivatives landscape.
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Why Rename and Standardize Perpetual Contracts?
Standardizing contract naming is more than just a cosmetic update—it’s a critical step toward improving transparency and reducing confusion in fast-moving crypto markets. Historically, some perpetual swap contracts used USDT (Tether) as the quote currency but were labeled inconsistently (e.g., ADAUSDT), even though settlement occurred in Bitcoin (XBT) value terms.
To align with industry best practices and ensure uniformity, new contracts now follow a clearer structure: [Asset]USD, indicating that while pricing is based on the USD value of the asset, settlements are still conducted in XBT. This eliminates ambiguity and makes it easier for traders to compare instruments across exchanges.
The shift also supports better risk management and margining frameworks by standardizing tick sizes, leverage limits, and fee schedules.
Newly Listed Perpetual Contracts
Effective October 13, 2021, at 20:00 GMT+8 (12:00 UTC), the following new perpetual contracts were officially launched:
- ADAUSD
- BNBUSD
- DOGEUSD
- DOTUSD
These contracts replaced their USDT-indexed counterparts (ADAUSDT, BNBUSDT, DOGEUSDT, DOTUSDT), which were settled early on the same date. A separate early settlement also applied to FILUSDT, ensuring a clean transition across all affected pairs.
Key Contract Specifications
Each new contract has been designed with optimized parameters for liquidity and precision trading:
| Symbol | Bitcoin Multiplier | Base Initial Margin | Max Leverage | Underlying Index |
|---|---|---|---|---|
| ADAUSD | 0.0001 | 3.00% | 33.33x | .BADA |
| BNBUSD | 0.000001 | 2.00% | 50x | .BBNB |
| DOGEUSD | 0.001 | 2.00% | 50x | .BDOGE |
| DOTUSD | 0.00001 | 4.00% | 25x | .BDOT |
All contracts are quoted in USD but settled in Bitcoin (XBT), using real-time index prices derived from major spot exchanges to prevent manipulation.
Fee Structure and Incentives
To encourage adoption and provide ample time for traders to adapt, the platform offered zero fee trading for both makers and takers on the new contracts until the cutoff time:
Until October 13, 2021, 20:00 GMT+8:
- Maker fee: 0.00%
- Taker fee: 0.00%
After October 13, 2021, 20:00 GMT+8:
- Maker fee: -0.01% (rebate)
- Taker fee: +0.05%
This temporary incentive lowered entry barriers and helped build initial liquidity pools—critical for volatile assets like Dogecoin and Cardano.
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Key Differences Between Old and New Contracts
Traders should be aware of several structural changes between the legacy USDT-based swaps and the new USD-standardized versions:
Bitcoin Multiplier Adjustments
- ADAUSD: Reduced from 0.01 to 0.0001, increasing precision for smaller positions.
- DOTUSD: Changed from 0.0001 to 0.00001, allowing finer control over exposure.
Price Precision and Limits
Minimum Price Increment:
- ADA pairs increased from 0.00001 to 0.0001, simplifying order placement.
- DOT pairs moved from 0.0005 to 0.001, reflecting broader market pricing trends.
Maximum Price Cap:
- ADA contracts raised from $1,000 to **$10,000**, accommodating potential future price surges.
- DOT's cap doubled from $50K to **$100K**.
Max Order Size:
- ADA and DOT order limits increased significantly—up to 1 million units per order—supporting institutional-grade trading.
Liquidity Incentives Pre-Cutoff
Unlike the old contracts that charged taker fees immediately, the new ones offered a grace period with:
- No taker fees
- No maker rebates (temporarily set to zero)
This encouraged balanced market participation without distorting incentives.
Early Settlement Process Explained
On October 13, 2021, at 20:00 GMT+8 (12:00 UTC), the following contracts were prematurely settled:
- ADAUSDT
- BNBUSDT
- DOGEUSDT
- DOTUSDT
- FILUSDT
Settlement followed the process outlined in the exchange’s official guide and used the respective 30-minute TWAP (Time-Weighted Average Price) index, such as .BADAT30M for ADAUSDT.
Important Notes:
- No funding payment was exchanged at the final funding timestamp.
- No additional settlement fees were charged.
- Users were advised to manually close or roll positions before the deadline to avoid automatic execution.
Positions left open were automatically closed at the settlement price derived from the index.
FAQ: Your Questions Answered
Q: Why were USDT-denominated contracts retired if they weren't actually settled in USDT?
A: Despite being named with "USDT," these contracts were always priced and settled in Bitcoin (XBT) based on USD values. The naming was misleading. Renaming them to “USD” improves accuracy and aligns with global standards.
Q: Can I still trade ADA or DOT after the old contracts expired?
A: Yes. The new ADAUSD and DOTUSD contracts serve the same purpose with improved specs and clearer naming. All functionality remains intact.
Q: How do I calculate my profit or loss on these XBT-settled contracts?
A: PnL is calculated in XBT terms based on changes in the underlying asset’s USD price multiplied by the Bitcoin multiplier. For example, a rise in ADA/USD increases the XBT value of your long position when denominated in Bitcoin.
Q: Was there any cost to roll positions from old to new contracts?
A: There was no direct rollover mechanism or fee, but traders needed to manually close old positions and open new ones, potentially incurring market slippage or timing risk.
Q: Are FIL contracts still available?
A: While FILUSDT was settled early, FIL perpetuals may be relisted under a standardized FILUSD format in the future. Monitor official announcements for updates.
Q: Were test environments available before launch?
A: Yes. ADAUSD, BNBUSD, DOGEUSD, and DOTUSD were available on the testnet prior to going live, allowing traders to simulate strategies risk-free.
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Final Thoughts
The move toward standardized perpetual contracts—using clear “AssetUSD” naming and consistent settlement mechanisms—marks a maturation phase in crypto derivatives trading. By retiring outdated naming schemes like ADAUSDT and replacing them with transparent alternatives like ADAUSD, platforms enhance usability and reduce operational risks.
For traders, staying informed about such changes is essential for managing open positions and optimizing execution strategies. As more exchanges adopt uniform standards, cross-platform analysis and arbitrage opportunities will become more efficient.
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