I. What is Pre-Launch Futures?
Pre-Launch Futures are essentially USDT-delivered futures where you can trade long or short on a project before its official listing. BingX Pre-Launch Futures offers up to 5x leverage with a maximum position limit of 20,000 USDT.
II. Advantages of Pre-Launch Futures
1. Jump in early and seize trading opportunities
Pre-Launch Futures offers users the chance to trade a project before its official listing. Users can capitalize on the movements of hot projects even before their tokens are issued.
2. Better liquidity and convenient trading anytime
Pre-Market Spot Trading is mainly over-the-counter (OTC) trading between users. Your funds will be frozen during order creation, which lowers fund efficiency and limits your ability to trade timely. In contrast, Pre-Launch Futures offer better liquidity and can be traded at any time.
3. Lock in profits from project airdrops in advance
If you hold tokens from an airdrop, you can lock in your profits early by going short with Pre-Launch Futures.
III. Details on Product Mechanism
1. Fee Details
- Trading Fee: The fee rates for Pre-Launch Futures are the same as BingX Perpetual Futures. For more details, please refer to: https://bingx.com/vip/profile/
- Funding Fee: Since Pre-Launch Futures don't have an external spot price as a reference, there are no funding fees.
- Delivery Fee: BingX currently does not charge delivery fees for Pre-Launch Futures.
2. Price Details
- Index Price:
The index price matches the latest filled price in the Pre-Launch Futures market.
- Mark Price:
The mark price matches the latest filled price in the Pre-Launch Futures market.
- Delivery Price:
The delivery price for Pre-Launch Futures is based on the average spot price taken every minute during the last 60 minutes before delivery. The system uses a price differential delivery (cash delivery) method, so any open positions will be closed at the delivery price.
Notes:
1) If the final total supply differs from the preset amount in Pre-Launch Futures, BingX will adjust the delivery price accordingly. For example, BingX preset the total supply for the Pre-Launch Futures project at 10,000 tokens, but the actual total supply is 100,000 tokens. When calculating the delivery price, the system will first recalibrate the spot price as follows: Spot Price * 10,000 ÷ 100,000.
2) Pre-Launch Futures are delivered based on the spot price. However, factors like market fluctuations, reduced liquidity, and auto-deleveraging can cause the actual filled price to differ from the new token's issuance price. Please be mindful of the market risks.
3. Leverage and Position Limit
|
Max. Leverage
|
Position Limit (USDT)
|
Maintenance Margin Rate
|
Initial Margin Rate
|
|
5
|
1,000
|
5%
|
20%
|
|
4
|
2000
|
7%
|
25%
|
|
3
|
5,000
|
10%
|
33.33%
|
|
2
|
10,000
|
12%
|
50%
|
|
1
|
20000
|
14%
|
100%
|
4. Forced Liquidation Mechanism
The forced liquidation mechanism for Pre-Launch Futures works the same as BingX Perpetual Futures. For more details, check out these articles:
• Forced Liquidation Rules: https://bingx.com/support/articles/16934295548441/
• Auto-Deleveraging (ADL) Mechanism: https://bingx.com/support/articles/18439073520537/
5. Delisting and Delivery Rules
a. If the new token issues and is available for spot trading on external CEX or DEX platforms (based on CoinMarketCap listing), Pre-Launch Futures will begin the delisting and delivery process. Please note that DEX prices may not be used as a benchmark for delivery if the liquidity is too low. The exact timing for delisting and delivery will be announced separately. During this time, new position opening will be suspended, and delisting and delivery will happen as scheduled. Users won’t be able to place or cancel orders 10 minutes before delivery. Please keep an eye on related announcements.
b. BingX may delist the Pre-Launch Futures trading pair in advance if the project team cancels the token issuance, fails to announce an issuance plan within six months, or due to other market risk issues. Please keep an eye on related announcements.
IV. Risk Disclosure
1. As some project teams haven't finalized their token issuance plans yet, there’s uncertainty around the total supply and whether the token will even be issued. These changes could cause fluctuations in market price, so it's important to stay informed on market updates. Additionally, there isn't a clear price source for the token since Pre-Launch Futures trading happens before the token listing. As a result, the Pre-Launch Futures price may differ from the token's price at and after its listing. Please keep this in mind and manage your risks accordingly.
2. Pre-Launch Futures trading comes with certain risks. The Pre-Launch Futures market is more prone to decreased liquidity, significant price fluctuations, and more. Additionally, not all tokens traded in Pre-Launch Futures will necessarily be officially issued and listed. BingX reserves the right to adjust the listing, extend or suspend futures, and set the futures delivery date at its discretion.