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▶ Futures credits

Karol
  • Updated on

For details, please see here for the Future Credits Terms of Services.

What is a Futures Credits (Voucher)?

  1. Trading Allowance

Future Credits function as a trading allowance, providing you with additional capital to use exclusively for futures trading. Future Credit Vouchers and Futures Credits cannot be transferred to another account. The futures credits will be applied to your next qualifying order after the redemption. While the credits themselves cannot be withdrawn, any profits generated from trading with them are withdrawable.

  1. Loss Coverage Ratio

Each Future Credit allocation comes with a specific Loss Coverage Ratio (LCR), which determines what percentage of your trading losses and funding fees can be covered by your Future Credits. Trading fees will be covered 100% regardless of the ratio of the voucher. For example:

  • With an LCR of 100%: All trading losses (up to your Future Credits amount) and funding fees will be deducted from your Future Credits
  • With an LCR of 50%: Half of your trading losses and funding fees will be covered by Future Credits, requiring you to maintain a minimum balance of real funds
  1. Flexible Usage
    Each Future Credits is subject to specific terms, conditions, limitations and availability periods. Future Credits may be used for:
  • As collateral for Futures trading in both cross and isolated margin modes Futures trading
  • Covering trading fees and funding fees
  • Loss coverage according to the specified LCR

It's important to note that Future Credits cannot be used for spot or margin trading, withdrawals, trading via sub-account or transfers to other accounts.

Trading volume generated using futures credits will be displayed on the Referral and Affiliate dashboards but will not count toward commission calculations.

Where to view the Futures Credits Voucher?

You can see your Futures Credits Voucher in the Reward center:

  • On the web page, go to the account menu and find Reward center
  • On the app, go to the Account page and select Reward center

 

How to redeem a Futures Credits Voucher?

  • Select a voucher and click Redeem. You can view more about this voucher by clicking Rules.
  • There will be one more confirmation dialogue before the redemption.
  • Spot trading will be disabled once you have redeemed your futures credits. Existing pending spot orders will be canceled during the redemption.
  • Users can only redeem one voucher at a time.
  • When redeeming a Future Credits Voucher with a loss coverage < 100%, you need to ensure that you have enough USDT in your wallet. You will see the dialogue for this.
    • Minimum required USDT = voucher amount/loss coverage ratio - voucher amount
    • Example:
      • Voucher amount: 30 USDT
      • Loss coverage ratio: 50%
      • Minimum required USDT: 30 / 50% - 30 = 30 USDT
    • After you redeem a Future Credits Voucher, the futures credits will be credited into your wallet. You can check the bonus distribution from Reward Center > Futures Credits.
    • The availability period of the Future Credits Voucher will vary according to the rules of each promotion. Please ensure that you redeem the Future Credits Voucher while it is available in the Reward Center, otherwise you will not be able to redeem your reward.
    • Upon the expiration date of the Futures Credits, if there are still pending orders or open positions, the futures credits will stay in the account, until there are no pending orders or open positions.
    • Once claimed, the Future Credits will be valid and the duration varies according to the rules of each promotion. 

    How to remove the Futures Credits?

    • You can remove the redeemed futures credits in Reward Center > Future Credits, or directly in the order entry of the trading page.
  • Before the removal, you need to have no pending orders or open positions.
  • We will have a final confirmation dialogue

Can I use other WOOX’s other features when using Future Credits?

  • Users can still withdraw, transfer, vault, and use earn, social trading. The available balance of withdrawal (USDT), transferring (USDT), vault (USDT), social trading, and earn (USDT) will exclude the minimum required USDT according to the futures credits amount and the loss coverage ratio.

Example: trading with futures credits

User A has 400 USDT in the cross wallet balance and received a 100 USDT Trial Fund Voucher with loss coverage ratio of 50%. They redeemed it into 100 USDT trial fund.

 

 

 

Scenarios Future credits balance Cross wallet balance (inclusive of futures credits) Isolated margin & frozen Unrealized PnL Cumulative realized PnL

Initial set up:

Future credits with a loss coverage ratio of 50%.

 100 500 0 0 0
User opens a cross order A with futures credits. 100  500 0 0 0
Cross order A gets 50% partially filled. Transaction fee of 1 is incurred. 99 499 0 0 0
Cross order A then gets canceled. 99 499 0 0 0
Funding payment of 3 is incurred for cross position A. 99 - 3 * 0.5 = 97.5 499 - 3 = 496 0 0 0
Market moves and cross position A has an unrealized PnL of -20. 97.5 496 0 A: -20 0
Cross position A gets closed with a loss of 20. 97.5 - 20 * 0.5 = 87.5 496 - 20 = 476 0 0 -20
Isolated position B gets created, margin needed = 50 87.5 476 - 50 = 426 50 0 20
Market moves and isolated position B has an unrealized PnL of -10. 87.5 426 50 B: -10 -20
Cross position C gets created 87.5 426 50 B: -10 -20
Market moves and cross position C has an unrealized PnL of 25. 87.5 426 50

B: -10

C: 25

 -20
Cross position C now gets closed with a realized PnL of 25. 87.5 426 + 25 = 451 50 B: -10 -20 + 25 = 5

 

 

Disclaimer

This blog post provides a general overview of Future Credits for educational purposes. In the event of any discrepancy between the information presented in this blog and the official Future Credits Terms of Service, the Terms of Service shall prevail. Users should always refer to the complete and current Terms of Service available on the WOO X platform for the definitive rules governing Future Credits. The specific terms, conditions, limitations, and availability periods stated together with each Future Credits Voucher and/or Future Credits will determine their actual usage and applicability.

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