N
N
Nami insurance
English
Search
K
💸

Perpetuals Futures position

For each Futures position, Liquidation price or Stoploss price (if any) are determined. When P-Market hits either one, it will cause the order to be partially or completely stopped, most users will lose profits in this case.
With the superiority of Nami Insurance, the Loss of the Closed Volume will be secured when the user successfully buy the contract, below is an example of the Perpetuals Futures Insurance:
User A opens a Long Position BTC/USDT with the following parameters:
When the position reaches the liquidation price ($27,000), the user's margin ($3,000) will be lost. To avoid this, users should make a margin of a contract to insure the risk of liquidation of information as follows:

Case 1: User A receives cover payout Q-Claim

At this time, Nami Insurance system automatically pays $3,588 (includes $588 insurance margin and $3000 Futures margin) to the user's Futures wallet.
In this case, although the Future Order has touched the Liquidation Price, thanks to the Insurance Margin, the Loss part of the future order is guaranteed by Nami Insurance.

Case 2: User A is refunded margin

At the end of the contract (23:59 on July 3, 2022), P-Market is in the range of $27,000 to $29,875 , User A receives a corresponding Q-Refund worth $588.

Case 3: Contract liquidation

The liquidation of the contract will take place when:
  1. 1.
    During the contract period, P-Market touches P-Expire.
2. At the end of the contract (23:59 on July 3, 2022), P-Market was in the zone according to the chart.
When 1 of 2 liquidation cases of the insurance contract occurs, the user will not be refunded the margin. However, at this time, the user's assets has also made a profit.
Note:
  • Futures insurance contracts and Futures positions are two independent entities. Understandably, in case the user actively 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 contrary, in case the insurance contract expires while the Futures position is open, depending on the situation at the time of expiration, the Nami Insurace system will take action to pay or return the margin accordingly. Futures positions are closed manually by the user or automatically closed when P-Market hits the Liquidation price.
Case 4: Close the contract before the expiration day
When P-Market ($30,000) reachs the price range conditions set by Nami Insurance algorithm, the user is allowed to cancel the insurance contract and receive the refunding margin.