The Mix Contract is the third type of perpetual contract created by 58COIN. It enables investors to use multiple digital currencies to trade various contracts that adopt BTC, ETH, etc., as the underlying assets, where market capitalization calculation is applied in the whole process, and such method will lift a real-time effect on the purchasing power and transactions.
Whenever there is the digital currency in the Mix Contract Account, a market capitalization conversion will start based on the real-time exchange rate of the cryptocurrency against USDT, in which USDT is working as the quoting unit and assets in the account are still the original digital currency.
To ensure openness and transparency, the exchange rate used for market capitalization conversion tethers to the index price in real-time with the standard of “Binance 70%, Huobi Global 30%”.
Instead of a simple market capitalization display, the market capitalization mentioned here is used as the universal currency in the Mix Contract for purchasing and trading BTC, ETH, and other currency types contracts, which means any change of it will cause the corresponding change in assets and purchasing power.
Since market capitalization calculation is adopted throughout the entire trading process of the Mix Contract, therefore, in addition to follow the change of market of the underlying currency contract, your available assets, risk level, unrealized profit will also change correspondingly according to the market capitalization of the holding currency.
If you deposit 100 USDT, 1 BTC, and 1 EOS in the Mix Contract Account, and at time A, the exchange rate (index price) is 1 BTC = 10,000 USDT, 1 EOS=10 USDT, then the market capitalization is 10,110 USDT and the assets in the account is 10,110 USDT; however, at time B, the exchange rate is 1 BTC = 12,000, 1 EOS = 15 USDT, then the market capitalization will rise to 12,115 USDT and the assets in the account will also increase to 12,115 USDT. If the underlying price remains unchanged, more underlying currency contracts can be purchased.