Dear Nami Community,

Futures trading is considered as one of the complex types of trading with many indicators and specific formulas, in order to answer questions from the user community and provide more useful information for users in trading Nami Futures and NAO Futures, Nami Futures would like to summarize the formulas of important indicators for Futures trading as follows.

1. PnL (Profit)

The profit formulas with Futures trading are:

With Long position

• Option 1 : Profit = (Close Price - Open Price) x Positions Size - Trading Fee
• Option 2: Profit = (Close Price - Open Price) / Open Price x Open Volume - Trading Fee

With Short positions

• Option 1: Profit = (Open Price - Close Price) x Positions Size - Trading Fee
• Option 2: Profit = (Open Price - Close Price) / Open Price x Open Volume - Trading Fee

Note:

• When users use assets other than the base asset of VNST or USDT as trading fees (such as NAMI or NAO). This portion of the trading fee will not be included in the Actual Position Profit upon closing. However, with Estimated Profit, the expected position closing fee will always be calculated with the base asset.
• Opening Volume = Opening Price x Position Size
• Closing Volume = Closing Price x Position Size
• Position Size: amount of digital assets has been traded on postions

2. PnL Percentage (%PnL)

PnL Percentage = PnL / Margin x 100%

3. Trading Fees

Trading Fees = Fee Rate x Open and Close Position Volume

Notice:

Depending on the assets the user uses to charge the fee, the fee rate will range from 0.036% to 0.06%. With Nami Futures: 0.042% (NAMI), 0.06% (VNST and USDT), with NAO Futures: 0.036% (NAO), 0.045% (NAMI), 0.06% (VNST and USDT), where as:

For USDT contracts:

Trading fees with assets other than the underlying asset = Fee Rate x Trading volume at opening and closing / (Charged asset exchange rate with corresponding VNST / USDTVNST exchange rate)

For VNST contracts:

Trading fees with assets other than the underlying asset = Fee Rate x Trading volume at opening and closing / Charged asset exchange rate with corresponding VNST

For example:

The user places a Long position with the BTC/USDT contract at the Opening Price of 40,000 USDT and the Closing Price at 42,000 USDT. Opening Position Volume is 4,000 USDT (ie, position's size is 0.1 BTC), Leverage x10 and Margin is 400 USDT, users use USDT as fees.

Then:

Trading fee = 0.06% * (4,000 + 4,200) = 4.92 USDT

Profit = (42,000 - 40,000) * 0.1 - 4.92 = 195.08 USDT

Profit Ratio = 195.08 / 400 * 100% = 48.77%

4. Activation Price

The activation (trigger) price is the price at which pending orders will be triggered, including open pending orders (limit orders), pending orders to close (SL-TP), add volume limit orders, closed partial position limit orders...

This Activation Price is regulated by the following indicators:

• Minimum activation price: is the minimum activation price that can be set
• Maximum activation price: is the maximum activation price that can be set
• Price Gap Ratio: the ratio of the minimum difference between the trigger price and the market price at the time of setting

For example:

The BTC/USDT trading pair has a market price of 68,500 USDT, with the trading rules on the Activation Price as follows:

• Minimum activation price: 34,300 USDT
• Maximum activation price: 137,000 USDT
• Price Gap Ratio: 0.03%

At that time, the minimum price gap will be 0.03% * 68,500 = 20.55 USDT, users need to set the activation price to differ higher than 20.55 USDT from the market price, ie no higher than 68,500 - 20.55 = 68,479.45 USDT and not less than 68,500 + 22.55 = 68,520.55 USDT

As such, users will need to set trigger prices for pending orders in the following price ranges:

34,300 < Activation price < 68,479.45 USDT; and

68,520.55 < Activation Price < 137,000 USDT

5. Liquidation Fee

Liquidation Fee, whose full name is Liquidation Premium, is the cost the user incurs when a position is liquidated to cover the account short in case the Futures account balance is below zero (negative account balance). account). This fee is charged in addition to the position's margin and will be deducted directly from the Futures account balance.

Tip: Trading position will be liquidated when Negative Profit exceeds Margin

Liquidation fee = Liquidation fee rate * Position volume at closing

Note: Currently Nami Futures is applying a 1% liquidation fee rate to all trading contracts.

For example:

User has a Long position with BTC/USDT pair with Volume at Opening is 100,000 USDT and Volume at Closing is 90,000 USDT.

Then:

Liquidation fee = 90,000 * 1% = 900 USDT

More information:

• Fee Schedule
• Support Center
• General Instructions
• Tutorials Playlist

Note: Nami reserves the right in its sole discretion to amend or change or cancel this announcement at any time and for any reason without prior notice.

Risk Warning: Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Nami is not liable for any losses that might arise from your investment. This information should not be regarded as financial or investment advice.

About Nami Exchange

Nami Exchange is a trading platform belonging to the Nami Foundation ecosystem that enables dynamic trading and effective investing through its Spot and Futures trading systems, which offer a wide selection of nearly 1,000 trading pairs, support leverage up to x125, and 24/7 live support in Vietnamese & English.
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