Dear 58COIN Users,
The objective fluctuation differences between the European and Asian spot indices and the incidental deviations raise the probability of platform index fluctuations, discounts and premiums in the market. The funding mechanism is created to achieve the purpose of correcting market trading by anchoring the market price to index price. In the case of frequent occurrence of “discount/premium”, the higher the sensitivity of the funding rate, the larger the fluctuation is. That said, the possibility of high exchange fees between users increases.
In order to reduce transaction costs and protect the users’ rights, 58COIN will make a second adjustment to the funding mechanism at 16:00 on Dec. 6 (GMT +8), and the mechanism will take effect as soon as the adjustment is announced. Details are shown as follows:
The calculation of the funding rate will be adjusted from an 8-hour weighted average to a 24-hour weighted average, which will passivate its sensitivity through a wider range of market data, making it more informative, and reduce the fluctuation range of the funding rate. Besides, the platform will also exempt the funding rate (-0.03%- +0.03%) exchanges between the longs and the shorts at 18:00 (GMT +8) every day. Exchange outside the scope (-0.03%- +0.03%) remains normal.
This adjustment is for Digital Perpetual Contracts and USDT Perpetual Contracts, which means that the transaction costs of these two business lines are reduced synchronously from two dimensions. We appreciate your trust and support. If you have any questions, please contact the online customer service.
By adhering to the operating principle of “Customer First, Safety, Strength and Trust”, 58COIN devotes to creating a safe, transparent and reliable digital asset service environment for investors.
Dec. 26, 2018