Futures cover

Assume the following case that user A holds 1 position (Futures):

Long: BNB

Opening Price: $298

Margin: $200

Leverage: X10

Liquidated price: 268.2

Worried that the price of BNB/USDT will drop and affect the position. To avoid this, users are advised to deposit 1 contract to hedge the liquidation risk

After having enough parameters, the user uses the Calculator, selects Futures, and enters all into the spreadsheet (left board).

By intelligent algorithms, Nami Insurance makes contract suggestions for the user's position as follows (right board)

Case 1: User A receives Q-Claim insurance payout

  • At this time, Nami Insurance system automatically pays insurance worth $564.2 (including $300 of insurance margin and $200 of Futures margin) to the user's wallet.

  • In this case, although the Futures order has reached the liquidation price, thanks to the insurance margin, the Loss of the Futures order is guaranteed by Nami Insurance.

Actual P&L: 564.2-300+(-200) = 64.2 $

Case 2: User gets a margin refund

  • In this case, there will be 2 situations: When eligible to stop the contract before maturity, user A who chooses to stop the contract will receive a Q-Refund corresponding to the margin value of $300

  • At the time of contract termination (T-Expire), P-Market is in the P-Refund to P-Claim zone, and user A receives a Q-Refund corresponding to a margin of $300

Case 3: Liquidation of the contract

  • In this case, there will be 2 situations: During contract validity, P-Market touches P-Expire

  • At the time of contract termination (T-expire), P-Market is in the range from P-Refund to P-Expire

When 1 in 2 cases of liquidation occurs, the user's margin will not be refunded. However, now your Futures position has made a profit.


  • Futures insurance contracts and Futures positions are two independent entities. Understandably, in case the user closes the Futures position but the insurance contract is still valid, when P-Market touches P-Claim, the user will still receive the insurance payment.

  • On the other hand, in case the insurance contract expires while the Futures position is open, depending on the situation at the time of expiration, the Nami Insurance system will take action to pay or refund the margin accordingly. Futures positions are closed manually by the user or automatically closed when P-Market hits the Liquidation price.

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