Frequently Asked Questions

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Deposits & Withdrawals

To deposit cryptocurrency to your Lonixx account:

  1. Log in to your Lonixx account
  2. Go to "Wallet" > "Deposit"
  3. Select the cryptocurrency you wish to deposit
  4. Copy your unique deposit address or scan the QR code
  5. Send your cryptocurrency to this address from your external wallet

Important: Always double-check the deposit address and network type before sending. Sending cryptocurrency to the wrong address or network may result in permanent loss.

Deposits: Most cryptocurrency deposits require network confirmations before being credited to your account. The time varies by cryptocurrency:

  • Bitcoin (BTC): 1-3 confirmations (approximately 10-30 minutes)
  • Ethereum (ETH): 12 confirmations (approximately 3-5 minutes)
  • XRP (XRP): 12 confirmations (approximately 1-3 minutes)
  • TRX (TRC20): 12 confirmations (approximately 1-3 minutes)
  • USDT (TRC20): 12 confirmations (approximately 1-3 minutes)

Withdrawals: Withdrawal processing times include:

  • Security verification: 0-2 hours
  • Blockchain network confirmation: Varies by network congestion

You can check the status of your deposits and withdrawals in the "Transaction History" section of your wallet.

USDT supports the TRC20 network. When depositing via other networks, such as ERC20, you may not be able to find your assets permanently.

TRX and USDT use the same TRC20 network, but the wallet addresses are different. If you accidentally deposit USDT to an address in TRX, the deposit will not be reflected. In this case, please contact us via 'Contact Us'.

Account & Security

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Futures Trade

Initial Margin

Initial Margin is the amount of collateral required to open a position for Leverage trading. The leverage used is directly related to the initial margin used to maintain the position. The higher the leverage, the lower the initial margin required.

To calculate the initial margin required for USDT Contracts, multiply the order value with the initial margin rate. The initial margin rate depends on the leverage used.

Initial Margin = Contract size x Entry Price / Leverage

Example:

  • Trader place a long entry of 1 BTC at USDT 10,000 with 50x leverage.
  • Initial Margin=(1x10,000)/50 =200 USDT
  • The initial margin used for a trade can be found on the "Positions" tab. Please be noted that the initial amount shown here includes the expected taker fee to close the position. In the Isolated Margin Mode, the Initial Margin used can be adjusted by clicking on the "Pen" symbol icon. By adjusting the Initial Margin used, this will affect the liquidation price of the position. For more details regarding adjusting the initial margin, please click here.


    Maintenance Margin

    Maintenance Margin is the minimum margin required to continue holding a position.

    It will increase or decrease according to the trader's selected risk limit. By default, all risk limits start at the lowest maintenance margin level inside each trading pair's risk limit table.

    Liquidation occurs when the isolated margin for the position is less than its maintenance margin level.

  • Order Value = Contract Size x Entry Price
  • Maintenance Margin = Maintenance Margin Rate x Order Value
  • The maintenance margin rate (MMR) required for a position is based on the selected margin level requirements determined by its position value.

    Example:

  • Trader place a long position of 1 BTC at USDT 10,000 with 50x leverage (Isolated Margin).
  • Initial Margin = 1 x 10,000 x 1/50 = 200 USDT
  • Maintenance Margin = 1 x 10,000 x 0.5% = 50 USDT
  • This means that this position could take an unrealized loss (Mark Price) of up to 150 USDT (200USDT – 50USDT) before liquidation takes place.
  • Regardless of any trades, it is important to understand how P&L is calculated before entering one. In sequential order, traders need to understand the following variables in order to accurately calculate their P&L.


    1. Average Entry Price (AEP) of position

      In Company, whenever traders add on to their position via new orders, AEP will change.

      For example, Trader A holds an existing BTCUSDT open buy position of 0.5 qty with an entry price of USD 5000. After an hour, Trader A decided to increase his buy position by opening an additional 0.3 qty with an entry price of USD 6,000. Below shows how the formula for AEP and the computation steps.

      Average entry price = Total contract value in USDT / Total quantity of contracts

      Total contract value in USDT = ( (Quantity1 x Price1) + (Quantity2 x Price2)...)

      By using the figures above:

      Total contract value in USDT = ( (Quantity1 x Price1) + (Quantity2 x Price2) )

      = ( (0.5 x 5000) + (0.3 x 6000) )

      = 4300

      Total quantity of contracts = 0.5 + 0.3

      = 0.8 BTC

      Average Entry Price = 4300 / 0.8

      = 5375


    2. Unrealized P&L

      Once an order is successfully executed, an open position and its real-time unrealized P&L will be shown inside the positions tab. Depending on which side of the trade you are in, the formula used to calculate the unrealized P&L will differ.

      example, for a long position

      Trader B holds an existing BTCUSDT open buy position of 0.2 qty with an entry price of USD 7000. When the Last Traded Price inside the order book is showing USD 7500, the unrealized P&L shown will be 100 USDT.

      Unrealized P&L = Contract Qty x (Last Traded Price - Entry Price)

      = 0.2 x (7500 - 7000)

      = 100 USDT

      example, for a short position

      Trader C holds an existing BTCUSDT open sell position of 0.4 qty with an entry price of USD 6000. When the Last Traded Price inside the order book is showing USD 5000, the unrealized P&L shown will be 400 USDT.

      Unrealized P&L = Contract Qty x (Entry Price - Last Traded Price)

      = 0.4 x (6000 - 5000)

      = 400 USDT

      Note

      In USDT contracts, your P&L is also settled in USDT. When the price movement is by a certain price (example USDT 1000) in the profitable or non-profitable direction, assuming position size of 1 BTC, this means that a trader will gain or lose USDT 1000 respectively.

      Increasing leverage does not directly multiply the profits/losses directly. Instead, profits and losses are determined by the position size and price movement. In short, the higher the leverage, the lower the margin collateral needed to open your position.

      The larger the contract quantity, the bigger the profits/losses.

      The larger the price movement relative to entry price, the bigger the profits/losses.

      The default unrealized P&L is shown based on Last Traded Price. When hovering a mouse cursor on top of the figure, the unrealized P&L will change and show an unrealized P&L based on Mark Price.


    3. Unrealized P&L(%)

      Unrealized P&L(%) basically shows the Return on Investment (ROI) of the position in its percentage form. Similar to Unrealized P&L, the figure shows changes depending on the movement of Last Traded Price. As such, the Unrealized P&L(%) or ROI formula is below.

      Unrealized P&L(%) = [ Position's unrealized P&L / Position Margin ] x 100%

      Position Margin = Initial margin + Fee to close

      Using Trader B as an example, Trader B holds an existing BTCUSDT open buy position of 0.2 qty with an entry price of USD 7000. When the Last Traded Price inside the order book is showing USD 7500, the unrealized P&L shown will be 100 USDT. Assuming the leverage used is 10x.

      Based on our earlier calculation, the position's unrealized P&L = 100 USDT

      Initial margin = (Qty x Entry price) / leverage = (0.2 x 7000) /10 = 140 USDT

      Fee to close = Bankruptcy price x Qty x 0.075% = 6300 x 0.2 x 0.075% = 0.945 USDT

      Unrealized P&L(%) = [ 100 USDT / ( 140 USDT + 0.945 USDT ) ] x 100% = 70.95%

      Note

      Some traders may misunderstand this, but adjustments to increase leverage do not increase your unrealized profits. Instead, traders will see an increase in unrealized P&L(%) due to a reduction in position margin and not because of an increase in actual profits.

      Using Trader B as an example again, notice that regardless if leverage is 10x, 5x, or 20x, the unrealized P&L remains the same.

      If Trader B uses the same 10x leverage, his unrealized P&L = 100 USDT, unrealized P&L(%) = 70.95%

      If Trader B reduces the leverage to 5x, his unrealized P&L = 100 USDT, unrealized P&L(%) = 35.71%

      If Trader B increases the leverage to 20x, his unrealized P&L = 100 USDT, unrealized P&L(%) = 142.85%


    4. Closed P&L

      When traders finally closed their position, the P&L becomes realized and is recorded inside the Closed P&L tab within the Assets page. Unlike unrealized P&L, there are some major differences in the calculation. Below summarizes the differences between the unrealized P&L and closed P&L.

      Calculation of Unrealized P&L

      Position Profit and Loss (P&L) : YES

      Trading Fee(s) : NO

      Funding Fee(s) : NO

      Calculation of Closed P&L

      Position Profit and Loss (P&L) : YES

      Trading Fee(s) : YES

      Funding Fee(s) : YES

      Therefore, assuming full closing of the entire position, the formula for calculating Closed P&L is as follows:

      Closed P&L = Position P&L - Fee to open - Fee to close - Sum of all funding fees paid/received

      Using Trader C as an example, Trader C holds an existing BTCUSDT open sell position of 0.4 qty with an entry price of USD 6000. When the Last Traded Price inside the order book is showing USD 5000, trader C decided to close the entire position via Close by Market function. Assuming that Trader C also opened the position via a market order and funding fees totaling 2.10 USDT was paid out while holding the position.

      Based on our earlier calculation, the position's P&L = 400 USDT received

      Fee to open = Qty x Entry price x 0.075% = 1.80 USDT paid out

      Fee to close = Qty x Exit price x 0.075% = 1.50 USDT paid out

      Sum of all funding fees paid/received = 2.10 USDT paid out

      Closed P&L = 400 - 1.80 - 1.50 - 2.10 = 394.60 USDT

      Note

      The above example only applies when the entire position is opened and closed via a single order in both directions. For partial closing of positions, Closed P&L will pro-rate all fees (fee to open and funding fee(s)) according to percentage of position partially closed and use the pro-rated figure to compute the Closed P&L.

    At the Order Confirmation Window and Order Zone, the ‘Order Cost’ is the total margin needed to open a particular position. It is calculated using the Initial Margin plus a 2-way taker fee. The actual fee charged/received depends on the execution type.

    Order Cost = Initial Margin + Two-Way Taker Fee

    Fee to open = (Quantity of contracts * Order Price) x Taker fee

    Fee to close = (Quantity of contracts * Bankruptcy Price derived from Order Price) x Taker fee

    Bankruptcy Price for long position = Entry Price x (1 - Initial Margin Rate)


    example, a trader enters a long position of 1 BTC at 8,000 USDT with 50x leverage.

    Initial Margin = (1BTC*8,000) / 50 = 160 USDT

    Fee to open = 1BTC x 8,000 x 0.075% = 6 USDT

    Bankruptcy Price = 8,000 x (1 – 0.02) = 7,840 USDT

    Fee to close = 1BTC x 7,840 x 0.075% = 5.88 USDT

    Order Cost = 160 USDT + 6 USDT + 5.88 USDT = 171.88 USDT

    Isolated Margin

    Each position has an assigned margin. When a position is liquidated, it doesn't affect your other assets.

    For Isolated Margin (default)

  • Long positions : Liquidation Price = Entry Price × (1 - Initial Margin Rate + MMR)
  • Short positions : Liquidation Price = Entry Price × (1 + Initial Margin Rate - MMR)
  • Where Initial Margin Rate = 1/Leverage and MMR is the Maintenance Margin Rate.


    Cross Margin

    Your entire Futures wallet equity acts as margin for your positions, which shares the risk of a forced liquidation of your positions. However, you can also lose the entire assets in your futures wallet.

  • Long positions : Liquidation Price = Entry Price - (Excess Margin / Position Size)
  • Short positions : Liquidation Price = Entry Price + (Excess Margin / Position Size)
  • Liquidation is triggered when the Mark Price hits the Liquidation Price.

    Liquidation Price (traders are allowed to add in the extra margin to position)

    Maintenance Margin Rate (MMR) is based on Tiered Margin.


    For Long position

    Liquidation Price = (((Entry Price)/Leverage) + Maintenance Amount - ( 1 x Position Amount x Entry Price))/((Position Amount* Maintenance Margin Rate) - ( 1 * Position Amount))

    Example

    • Trader place a long entry of 1 BTC at 10,000 USDT with 50x leverage. Assuming no extra margin added.
    • Liquidation Price = (((10,000 USDT)/50) + 0 - ( 1 x 1 x 10,000 USDT ))/((1* 0.04%) - ( 1 * 1)) = 9,754 USDT

    For Short position

    Liquidation Price = (((Entry Price)/Leverage) + Maintenance Amount - ( -1 x Position Amount x Entry Price))/((Position Amount* Maintenance Margin Rate) - ( -1 * Position Amount))

    Example

    • Trader place a short entry of 1 BTC at 8,000 USDT with 40x leverage. Assuming no extra margin added.
    • Liquidation Price = (((8,000 USDT)/50) + 0 - ( -1 x 1 x 8,000 USDT ))/((1* 0.04%) - ( -1 * 1)) = 8,247 USDT

  • Leverage (higher leverage = closer liquidation price)
  • Entry price
  • Position size
  • Margin mode (Isolated vs Cross)
  • Account balance (for Cross Margin)
  • Market's tier-based margin requirements
  • Use lower leverage
  • Add more funds to your account
  • Set stop-loss orders before reaching liquidation price
  • Monitor positions closely during high volatility
  • Consider using Cross Margin if you have sufficient balance
  • Bankruptcy Price is a price level that indicates you have lost all your initial margin.

    Upon liquidation, the liquidated position will be closed at the Bankruptcy Price, and this means that you have lost all your initial margin. If the liquidated position has its final liquidation price better than the bankruptcy price, the excess margin will be contributed to the Insurance Fund. Vice versa, if the liquidated position has its final liquidation price worse than the bankruptcy price, the Insurance fund will cover the loss gap.


    For Long position

    Bankruptcy Price= Entry Price × (1 - Initial Margin Rate*)

    * Initial Margin Rate (IMR) = 1/ Leverage


    For Short position

    Bankruptcy Price= Entry Price × (1 + Initial Margin Rate*)

    * Initial Margin Rate (IMR) = 1/ Leverage


    Example

    traders hold a 1BTC Long position with an entry price at 10,000USDT, leverage is 50x.

    Bankruptcy Price= 10,000 × (1 - 2%) = 9,800 USDT

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