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 trading and pricing process, and in which USDT is used as the quote currency.
As a new type of perpetual contract, the Mix Contract also adopts “Index Mechanism (Index Price)” to determine position risk and calculate the unrealized profit and loss.
For the price quotation, please refer to “Mix Contract Multiplier Description”.
In other words, many currencies can be used as the general currency to buy and sell multiple underlying contracts. When trading the Mix Contract, featured by holding currencies share risks, users can trade various underlying contracts without the need to use USDT as the only currency for margin like the USDT Contract. (Underlying refers to the transaction object, like BTC, ETH, and other contracts)
Suppose you hold digital assets such as 10 BTC, 1 ETH, and 100 BNB for a long time, but you want to long EOS and do not want to exchange currency, then you can choose the Mix Contract.
If you want to buy long EOS with a market capitalization of 10,000 USDT, with the Mix Contract, you’ll only need to provide digital assets worth 100 USDT as the margin and select the 100x leverage.
Theoretically, you only need to transfer 100 BNB into the Mix Contract Account to cover the market capitalization. However, due to the change of BNB market capitalization and the EOS market oscillates, you can transfer the idle 10 BTC and 1 ETH into the account to basically offset the risk and get nearly absolute profit. In this way, users can achieve the purpose of making indirect money without trading idle assets.