FAQ
Penals Perpetual FAQ
What is an NFT perpetual contract on Penals? An NFT perpetual contract on Penals is a financial instrument that allows traders to take long or short positions on the floor price of NFTs by using a fraction of ETH as collateral.
What is my leverage? The maximum leverage available to users on Penals is 50x. However, it's important to note that if a user chooses not to fully leverage their positions, their effective leverage could be lower. The formula to calculate effective leverage is as follows: Effective Leverage = Account Equity / Position Notional Value
What is cross-margin mode? Cross-margin mode is a feature on Penals that allows users to open multiple positions using the same collateral. Penals only supports a cross-margin mode to ensure optimal capital efficiency for its users.
What is the last price? And why is it different from the mark price on Penals? The last price refers to the most recent traded price of a perpetual contract on Penals, while the marked price is an estimated fair price that considers the reasonable value of an asset to prevent unwarranted liquidations. The difference between the last price and the mark price is that the last price reflects only the most recent transaction, whereas the mark price is calculated using a formula that incorporates multiple data points such as the Impact Mid, price 1, and price 2.
How is the Index Price calculated? The NFT index price (PenalsI) on Penals is determined by taking the average price of the floor price and the top bid for a specific NFT collection. The formula to calculate the Index Price is as follows:PenalsI = (Floor Price + Top Bid) / 2 Where: The Floor Price is the lowest floor price of the constituent exchanges.
How is the funding rate calculated? The funding rate on Penals is calculated over the last hour using the following formula: Funding Rate (current) = 24 * (Mark Price - PenalsI) / Penals
What is the difference between liquidation price and bankruptcy price? The liquidation price is the price at which a trader's position is automatically liquidated by Penals when their account equity falls to the maintenance margin level. On the other hand, the bankruptcy price is the point at which a user's account equity is reduced to zero.
What is Auto-deleveraging (ADL)? When a trader's position is liquidated and the liquidation order cannot be filled at the bankruptcy price, the ADL system on Penals automatically deleverages opposing traders' positions based on profit and leverage priority.
What are the requirements for listing a new NFT perpetual contract on Penals? Penals primarily focuses on popular blue-chip projects but occasionally evaluates promising NFT projects for potential listing. The key indicators we consider include trading volume, floor price, and the number of unique owners. If you would like to request the listing of a project, please raise it in our telegram channel.
What is the maximum position size allowed on Penals? The maximum position size per trading pair on Penals is 100 ETH per account. If you wish to increase your position limit, please contact us via Telegram
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