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Multiple types of futures on Helix involve margin trading, which is defined as using borrowed capital to amplify your potential returns and risks when trading certain futures contracts. However, it's crucial to understand the risks involved before diving in, as margin trading can amplify losses just as easily as gains.
In essence, margin trading allows you to control a larger position in a futures contract than your own capital would normally allow. This is achieved by borrowing capital, placing a leveraged bet on the future price of the underlying asset.
Here's how it works:
Deposit Margin: You deposit a portion of the total contract value as initial margin. This deposit - which is typically denominated in USDT or INJ on Helix - acts as collateral for the borrowed capital.
Control a Larger Position: With your initial margin, you can control a futures contract with a much higher notional value. For example, if a Bitcoin futures contract is worth $100,000 and the margin requirement is 10%, you can control the entire contract by depositing only $10,000.
Amplified Profits and Losses: Any price movement in the underlying asset will be magnified for your position. If the price moves in your favor, your profits will be multiplied compared to simply holding the underlying asset. Conversely, if the price moves against you, your losses will also be amplified, and your initial margin could be wiped out if the price falls too far.
Understanding Margin Requirements:
The amount of margin required for a futures contract varies depending on several factors, including:
Volatility of the underlying asset: More volatile assets typically require higher margin amounts.
Contract terms: Different futures contracts on the same asset may have different margin requirements.
Exchange or clearinghouse: Each exchange or clearinghouse may set its own margin requirements.
It's important to remember that margin trading is not for everyone. It's a high-risk strategy that requires a deep understanding of the markets and risk management techniques. If you're not comfortable with the potential for significant losses, it's best to stick to traditional trading methods.
Here are some additional things to keep in mind when considering margin trading on Helix:
Liquidation: If the price of the underlying asset moves against you and your margin falls below a certain threshold (maintenance margin), your position will be liquidated to cover your losses. This means you could lose your entire initial margin deposit. See for more information.
Funding Rates: In some cases, you may also be charged funding rates, which are fees paid to maintain your leveraged position. These fees can vary depending on market conditions and can eat into your profits. See for more information.
Manage Your Risk: Always use stop-loss orders and other risk management tools to limit your potential losses when margin trading.
Margin trading can be a powerful tool for experienced traders, but it's important to use it responsibly and with a clear understanding of the risks involved. If you're considering margin trading on Helix, be sure to do your research and only trade with capital you can afford to lose.
Overview
The Helix "AI Index" is a cryptocurrency index designed to provide investors with diversified exposure to the most promising AI blockchain projects and AI Equities. The index comprises 50% of 10 selected AI blockchain tokens and 50% of 6 AI Equities.
Components: 10 AI tokens, including Near (NEAR), Internet Computer (ICP), Bittensor (TAO), Render (RENDER), Virtuals Protocol (VIRTUALS), Artificial Superintelligence Alliance (FET), Injective (INJ), Akash Network (AKT), Ai16Z (Ai16z) and Grass (GRASS)
Weighting Methodology: Market capitalization-weighted.
Rebalancing Frequency: Monthly.
Components: 6 AI stocks, including Nvidia (NVDA), Taiwan Semiconductor Manufacturing Company Ltd (TSM), Palantir (PLTR), Arista Networks (ANIT), Super Micro Computer Inc (SMCI), and SenseTime (SNTMF)
Weighting Methodology: Market capitalization-weighted.
Rebalancing Frequency: Monthly.
Stocks
NVDIA
0.363449688376
TSM
0.096836076142
PLTR
0.021002110020
Arista Networks
0.015632109434
Super Micro Computer Inc
0.002100211002
SenseTime
0.000979805025
Crypto
Near (NEAR)
0.111904058106
Internet Computer (ICP)
0.086567290233
Render (RENDER)
0.065453317005
Bittensor (TAO)
0.073898906296
Virtuals Protocol (VIRTUALS)
0.028503863857
Artificial Superintelligence Alliance (ASI)
0.059119125037
Injective (INJ)
0.038005151809
Ai16z
0.014568641527
Akash Network (AKT),
0.012900637642
Grass (GRASS)
0.009079008488
Market Cap Calculation: For each token, its market capitalization is calculated by multiplying the token's price by its circulating supply. Tokens represent 50% of the index. For each stock, the market capitalization is taken from Bloomberg Terminal. Equities represent 50% of the index.
Initial Weights: Each token’s weight is determined by dividing its market cap by the total token market cap. Likewise, each equity’s weight is determined by dividing its market cap by the total equity market cap.
Index Value: The index is priced by aggregating the weighted prices of each component token and equity.
Formula: First we divide the market capitalization for each asset by the sum of the market capitalization in each asset sector, equities and crypto. This gives us the asset-specific weight for for the index. Then we sum the market capitalization for all equity assets and all crypto assets. Next, we multiple each asset-specific weight by the sum of the market capitalization of all assets to get the normalized market capitalizations for each asset. This normalizes the assets so that 50% of the index represents AI Equities and 50% of the index represents AI Tokens. Lastly, we add up the normalized market capitalizations and divide by 1,000,000,000 (10^9) to get an index price for the asset.
Here are the steps in formula form:
Calculate the total market capitalization for each sector:
Calculate asset-specific weights:
Adjust the weights to a scaled value of 50% crypto and 50% equity:
Calculate normalized market capitalizations:
where
Calculate the index price:
The index price is now:
Benchmarking: Investors can use the "AI Index" as a benchmark to measure the performance of their portfolios.
ETFs and Derivatives: The index can serve as the basis for financial products like ETFs or derivatives that track its performance.
Cap on Dominance: The representative caps prevent any single token or equity from dominating the index, reducing concentration risk.
Diversification: By including 10 tokens, the index mitigates the impact of poor performance in any one project.
Real-Time Tracking: The index value is updated in real-time based on the latest prices of the component tokens.
Historical Data: Historical index values are available to analyze trends and performance over time
In TradFi, a futures contract is an agreement that requires two parties to transact an asset at a predetermined price at a specified time in the future. This allows traders to lock in a future price of the underlying asset to hedge or speculate on price movements. Helix offers a completely decentralized form of these futures contracts—expiry futures.
Similar to perpetual futures, expiry futures on Helix are traded with margin, allowing traders to access leverage. However, unlike perpetual futures, expiry futures have expiration dates and do not require funding payments, though liquidations may still occur if the maintenance margin threshold is not met.
Upon expiration, expiry futures markets are settled using oracle prices, typically set to the spot prices of the underlying assets. As a result, the price of futures tend to converge upon the spot price as the expiration date nears.
An interesting use of expiry futures on Injective are Pre-Launch Futures.
Pre-Launch Futures (PLF) enable investors to speculate on assets before their public release, addressing the gap where trading activity is typically unavailable. The initial PLF market on Helix will utilize expiry futures contracts, although perpetual futures may also be introduced in the future.
For expiry futures, a mark price is essential for tracking liquidation and settlement. However, as spot prices for the underlying assets are unavailable before public launch, traditional oracle feeds cannot be used. PLF markets are designed to be traded near the asset's public launch, allowing the mark price to align with the spot price once trading begins. Before this point, Helix employs a 24-hour exponentially weighted moving average (EWMA) of the last day’s minutely last traded prices as the interim mark price, ensuring accurate liquidation tracking and settlement preparation.
The mark price is based on two price feeds:
EWMA price feed
CEX API price feed - Binance, OKX, or Bybit, whichever lists the underlying asset first.
During the various phases of the timeline, a different price feed is used:
Before asset is listed on CEX ⇾ EWMA price feed
Within 24 hours of asset is listed on CEX ⇾ EWMA price feed
24 hours after asset is listed on CEX ⇾ CEX API price feed
This design prevents a sudden distortion in mark price if the difference between EWMA price feed and CEX API price feed is great.
The EWMA price is calculated as follows:
Where:
t_init
is the time of the first trade in the underlying market.
assumed price
is the price assumption of the underlying asset. This price is used when there is no last traded price
24 hours prior the first trade in the underlying market. In other words, after the first 24 hours, if the underlying market has traded already, then the assumed price would no longer have an impact on the mark price.
last traded price
is the last price traded in the underlying market.
Leveraging the power of margin trading comes with the risk of liquidation. This mechanism acts as a failsafe for both the trader and the DEX, automatically closing your position when your equity dips below a critical threshold. This is done to prevent further losses and protect the system's stability.
Liquidation is triggered when your account's maintenance margin drops below a certain level. This maintenance margin is a percentage of the total contract value, typically lower than the initial margin you deposited. It acts as a buffer against price movements.
The margin must fulfill:
For example, in a market with maximally 20x leverage, the initial margin ratio would be 0.05. Any new position will have a margin which is at least 5% of its notional.
The margin must fulfill the mark price requirement:
PNL is the expected profit and loss of the position if it was closed at the current MarkPrice. Solved for MarkPrice, this results in:
For Buys:
For Sells:
Throughout the lifecycle of an active position, if the following margin requirement is not met, the position is subject to liquidation.
Note: For simplicity of notation but without loss of generality, we assume the position considered does not have any funding.
For Longs:
For Shorts:
For example, let's say you use 10% margin for a Bitcoin futures contract worth $100,000. Your initial margin would be $10,000, and your maintenance margin might be 5% ($5,000). If the price of Bitcoin falls significantly, causing your equity in the contract to drop below $5,000, your position will be automatically liquidated.
When liquidation is triggered:
The exchange will force-close your position. This means selling your futures contract, regardless of the current market price.
The proceeds from the sale will be used to cover your outstanding debt to the platform. This includes the initial margin, any unpaid funding fees, and the loss incurred on the position.
Any remaining funds will be credited back to your account. However, it's crucial to remember that liquidation can potentially wipe out your entire initial margin deposit.
To avoid the painful sting of liquidation:
Monitor your margin: Keep a close eye on your account's margin level and the market movements affecting your positions.
Use stop-loss orders: These pre-set orders automatically sell your position when the price reaches a certain point, potentially minimizing losses and preventing liquidation.
Maintain adequate margins: Avoid over-leveraging your positions. Higher margins provide a larger buffer against price fluctuations.
Understand funding rates: Factor potential funding costs into your risk management calculations, especially in volatile markets.
where represents the total market cap of the equity companies in the said basket, and represents the total market cap of the crypto companies in the basket. represents the element with index in the real valued vector and similarly represents the element with index in the real valued vector
where and represents each element of the real valued vectors and
where and where and represent the total number of crypto and equity companies, respectively, and is the adjusted weight metric.
Now let us introduce another variable which represents the entire basket of equity and crypto whose dimensions are now a direct sum of as
Based on the new we calculate the total normalized market cap:
where the numerator is a vector summation, and the .
Helix currently supports all on-chain markets available on its decentralized orderbook.
Any community member is able to launch new markets on Helix. Certain pairs are "verified," as denoted by a green badge. Pairs can be verified for a number of reasons, typically due to community support or consistent high trading volume and a trusted project team.
Limit: allows a trader to specify a maximum price they are willing to pay when buying, or a minimum price they are willing to accept when selling. The order is only executed if the market reaches the specified price (or better).
Market: an instruction to buy or sell an asset immediately at the best available market price. Market orders prioritize speed and execution over price control.
Stop-Limit: combines features of a stop order and a limit order. It becomes a limit order when the market price reaches a specified "stop" price. The trade is then executed only if the market price meets the conditions of the limit price.
Stop-Market: converts into a market order once the market price reaches the specified "stop" price. Execution occurs immediately at the best available price after activation, ensuring the trade happens, but without price guarantees.
Leverage: allows a trader to amplify their position size by borrowing funds. It increases potential profits but also magnifies potential losses. Helix offers up to 20x leverage on trades, depending on the market.
Slippage: refers to the difference between the expected price of a trade and the actual price at which it is executed, often caused by low liquidity or high market volatility. Custom slippage settings can be set for Market and Stop-Market orders on Helix.
Post Only: ensures that an order is added to the order book as a maker order and does not execute immediately as a taker order. This guarantees the trader earns maker fees (or rebates) rather than paying taker fees. Post Only is available for Limit orders on Helix.
Reduce Only: ensures that the order only decreases or closes an existing position and does not open a new one. This is commonly used to manage risk. Reduce Only is available across all order types on Helix.
Bypass Price Warning: allows traders to override system warnings about placing orders at potentially unfavorable prices, which might result in significant slippage or execution far from the expected price. This option is available for Limit and Stop-Limit orders on Helix.
Take Profit / Stop Loss (TP/SL): conditional orders designed to automatically close a position at a specified profit or loss level. TP sets a target price to lock in profits, while SL sets a price to limit loses. TP/SL is support for Market orders on Helix.
While margin trading unlocks the door to amplified gains, it also introduces another layer of complexity - funding requirements. Often overshadowed by margin requirements, understanding funding rates is crucial for responsible leveraged trading on Helix.
In traditional futures contracts, the price on the exchange converges with the spot price over time. In contrast, perpetual futures on Helix never expire, creating a potential disconnect between the contract price and the underlying asset's spot price. To keep these prices in sync, a mechanism called funding payments kicks in.
Funding rates are essentially periodic fees exchanged between long and short positions. The direction of these payments depends on the prevailing market sentiment:
Positive Funding Rates: If a significant majority of traders are long, short positions pay funding fees to long positions. This incentivizes trading activity that could potentially bring the contract price down towards the spot price.
Negative Funding Rates: Conversely, if most traders are short, long positions receive funding fees from short positions. This encourages trading activity that could potentially push the contract price up towards the spot price.
The specific calculation of funding rates is a formula that considers the difference between the contract price and the index price (a reference point representing the spot price), along with an interest rate component. While these rates may seem small at first glance, they can accumulate over time and significantly impact your trading experience.
For long position holders, positive funding rates represent an additional cost. You'll be paying funding fees to short positions on each funding interval. Conversely, negative funding rates translate to receiving payments, essentially earning passive income on your open position.
For short position holders, the funding dynamic flips. Positive funding rates become a source of income, while negative funding rates translate to periodic payments you owe to long positions. Therefore, it's crucial to factor potential funding costs into your margin calculations and risk management strategies.
Perpetual futures contracts are leveraged trading instruments that allow traders to speculate on asset prices without an expiration date. Unlike traditional futures, perpetuals remain open indefinitely and are cash-settled, eliminating the need for physical delivery of the underlying asset.
On Helix, perpetual contracts are margined with stablecoins (e.g., USDT), making them more accessible and reducing the need to hold or store the underlying asset. Perpetuals also tend to be more liquid than traditional futures, minimizing slippage during trades.
To maintain alignment with the underlying asset's spot price, perpetuals rely on a funding mechanism. Funding payments are exchanged periodically between long and short positions based on the funding rate, which adjusts for price deviations between the perpetual contract and the underlying asset. This mechanism ensures the price remains close to the spot price, preventing significant overpricing or underpricing.
Realized vs. Unrealized Profit and Loss (PNL)
Realized PNL: Profit or loss locked in when a position is closed, accounting for entry/exit prices and fees (e.g., trading fees, funding payments).
Unrealized PNL: Potential profit or loss on an open position based on the current market price, fluctuating with the mark price.
Mark Price
The fair value price used to calculate unrealized PnL and liquidation events, preventing manipulation from temporary price changes. Helix uses decentralized oracles like Pyth and Stork for accurate mark price data.
Margin Requirements
Initial Margin: Margin required to open a position, based on position size and leverage.
Maintenance Margin: The minimum margin needed to keep a position open. Falling below this threshold triggers liquidation, automatically closing the position to prevent further losses.
Liquidation
Triggered when the margin balance drops below the maintenance margin. To avoid liquidation, traders can add more margin, reduce their position size, or monitor market conditions closely.
Funding Payments
Periodic payments exchanged between long and short positions to align the perpetual price with the spot price. On Helix, funding occurs hourly.
Positive funding rates: Longs pay shorts.
Negative funding rates: Shorts pay longs.
This mechanism incentivizes traders to bring the perpetual price back in line with the underlying market.
Leverage and Risk Management
Higher leverage reduces the buffer between the initial and maintenance margin, increasing the risk of liquidation. Traders should calculate liquidation prices and adjust their strategies to manage risks effectively.
Helix perpetual futures go beyond standard trading applications, enabling innovative use cases like Election Perpetuals and Index Perpetuals.
Election Perpetuals
Key Features
Leverage: Trade with up to 3x leverage.
Funding Mechanism: Funding payments ensure the contract price aligns with the Polymarket index.
Mark Price: Uses a proprietary oracle from Stork, applying a 6-hour time-weighted average price (TWAP) to reduce volatility.
Example For the 2024ELECTION PERP, the mark price tracks Polymarket's midpoint for "Donald J. Trump Wins." If the Polymarket market resolves to "yes," the price settles to $1; otherwise, it settles to $0.
Market Settlement While perpetual contracts have no expiration date, trading activity decreases as elections conclude. Once the Polymarket result is final, a governance proposal can settle the market, liquidating any open positions at the final mark price ($0 or $1).
Index perpetuals are derivatives that track the price of an index instead of a single asset. These contracts are perpetual futures tied to indices, such as baskets of cryptocurrencies or on-chain metrics like the total supply of a product. For example, the BUIDL/USDT Index Perp tracks the net asset value (NAV) of BlackRock's BUIDL fund.
Key Features
Leverage: Trade with up to 5x leverage.
Funding Mechanism: Funding payments align the contract price with the index.
Mark Price: Uses a proprietary oracle from Stork, which applies a 1-hour TWAP to smooth price fluctuations.
Example For the BUIDL/USDT Index Perp, the mark price reflects the total supply of the BUIDL fund based on its smart contract on Ethereum. The NAV is scaled down for readability (e.g., 500 million tokens equates to a price of 5000).
Index perps provide flexible and innovative trading opportunities, allowing traders to speculate on broader market movements or specific on-chain metrics without holding the underlying assets.
Helix trading fees are typically set to:
Maker Fee: -0.005%
Taker Fee: 0.05%
Traders who meet threshold criteria for minimum staked INJ and minimum trading volume on a 28-day rolling basis are eligible for discounts on Injective trading fees, as described below.
On Helix, rebates are available for maker fees, standardized at 60%.
For example, a trader places a limit order to purchase 1 BTC/USDT PERP at $100,000. If this limit order constitutes a maker flow, it is eligible for the -0.005% maker trading fee. As such, the rebate issued to the trader is calculated as:
Grid trading is an automated strategy that places buy and sell orders at predefined price intervals within a specified range. It generates profit by capitalizing on price oscillations, making it effective in both trending and ranging markets.
Define Your Grid
Set the price range (upper and lower bounds).
Choose the number of grids to divide the range into equal price intervals.
Initial Balance Setup
Deposit both base and quote assets.
Initial market orders rebalance your assets to match the grid strategy, ensuring optimal performance.
Example: For a $1800–$2200 ETH/USDT grid, the bot adjusts your assets to match the grid's middle point.
Automated Trading
Places buy orders at lower grid levels and sell orders at upper levels.
Continuously rebalances positions as the market moves.
Profit Generation
Profits are realized each time the price crosses a grid line.
Earn from market volatility, with profits accumulating in both base and quote assets.
Election perpetuals allow traders to speculate on election outcomes with leverage, offering exposure to markets like . These contracts are perpetual futures tied to an index price rather than traditional crypto assets.
To view your current tier and personal statistics, please visit the . Upon connecting / logging into your account, you will see the dashboard below, populated with your information.
Grid trading is only available via trading bots on Helix. To learn more, visit .
Upon connecting your wallet to Helix, you may be prompted to enable Auto-Sign, which allows you to trade for 60 minutes without having to sign each individual transaction. You can deactivate Auto-Sign at any time by going to wallet settings, or by simply disconnecting your connected wallet from Helix. If you prefer to sign each transaction individually, you can ignore or dismiss the pop-up and trade normally.