MarginX is a decentralized perpetual order book exchange that has integrated AMM functionality for order book market making, also known as Automated Limit Orderbook (ALO) market maker for the perpetual market.
Users can list, trade, and provide liquidity in any perpetual market, with liquidity providers earning 100% of all trading, liquidation, and funding fees. The liquidity provided by market participants will automatically populate as limit orders on the order book.
For more information, please refer to our GitBook.
The MarginX logo is a combination of the following symbols.
🎲 (Dice) = Probability of trading strategies
🧿 (Evil Eye) = A quasi-universal symbol of protection
👹 (Daruma Face) = Daruma is rich in symbolism and is regarded as a talisman of good luck, and a symbol of perseverance
( ) (Brackets) = Representation of f(x) blockchain
Ⓜ️ = Letter M
❎ = Letter X
Since MarginX is completely decentralized, there is no signup or KYC protocol. All you have to do is to connect your wallet to trade.
Currently, MarginX is optimized to be used with f(x)Wallet. We are working to make more wallets compatible through WalletConnect in the near future.
- Download f(x)Wallet
- Create new wallet or import existing wallet
When creating a new wallet, make sure to backup your seed phrase for added security.
- Name account
This will be your account’s primary name.
- Enter preferred password
It is recommended to use a mix of alphabetical and numeric characters.
- Set up Touch ID (Optional)
You may set up Touch ID for extra security, or skip this step entirely.
- Back up seed phrase
It is highly recommended to read the instructions carefully before you press ‘Start’. You will be shown your unique 24-word recovery seed phrase. Make sure to back up your seed phrase in the correct order and store it in a safe place.
- Connect wallet
Tap on ‘Connect Wallet’ icon at the top right hand corner of the MarginX desktop platform.
- Scan QR code
Scan the QR code using your f(x)Wallet on your phone.
The f(x) Bridge enables users to move their assets from the f(x)Core chain to the MarginX chain and vice versa.
Users can also deposit funds into their designated trading pair account of their choice within a single address.
Please do not use Ledger to connect to MarginX for trading. This feature is not available at this moment, and any transaction sent via Ledger will be lost.
MarginX will not be responsible for such incident.
MarginX does not list actual stocks or cryptocurrencies on its exchange.
However, MarginX is the world’s first multi-chain decentralized exchange infrastructure that facilitates the trading of both stock- and crypto-based perpetual contracts, offering users more trading options and strategies.
It closely replicates the market conditions of the stock and cryptocurrency markets through various mechanisms, and simultaneously allows users to trade perpetual contracts with 1–5x leverage.
These are the 5 key features of trading perpetual contracts on MarginX.
Leverage – Traders gain access to significant levels of leverage, which means that potential profits are much higher with less capital, though losses are equally magnified. It allows traders to handle their capital with more efficiency.
Direction – Traders can speculate on the performance of an asset by shorting or longing even if they do not own the actual asset.
Duration – Perpetual contracts do not have an expiration date and traders are able to hold for as long as they want, so long as they have sufficient margin.
Liquidity – All networks share the same order book depth on MarginX due to its multi-chain, cross-chain and para-chain infrastructure, which ensures a high liquidity of assets within MarginX. High liquidity is an important factor for smooth trading because it determines how fast and effectively contracts can be purchased or sold. High liquidity also tends to be associated with lower risk because of its tighter spread.
Funding Fee Opportunity – Traders of perpetual contracts can potentially earn more side profits through the funding rate, where longs or shorts provide funding to each other based on the deviation of the perpetual price against the index.
When you open a position for a perpetual contract, you enter an agreement to trade against the price movement of the underlying asset.
To go long
is to enter a perpetual contract, with the expectation that the price of the asset will increase in value — a bullish thesis.
When the market price reaches your target price, you then have the opportunity to close your position and sell the contract at a higher price than when you entered, thereby profiting from the upward price movement.
To go short
is to enter a perpetual contract, with the expectation that the price of the asset will decrease in value — a bearish thesis.
When the market price reaches your target price, you then have the opportunity to close your position and buy the contract at a lower price than when you entered, thereby profiting from the downward price movement.
No expiration date
Perpetual contracts do not have an expiration date which means you can hold your position for as long as you don’t get liquidated.
The funding rate balances the long and short positions between buyers and sellers by incentivising a market balance through periodic payments.
Consider it a fee to maintain market equilibrium.
When the perpetual price is higher than the spot price, the funding rate is positive. In that scenario, the longs pay the shorts a fee.
Positive Funding Rate = Longs pays Shorts
Negative Funding Rate = Shorts pay Longs
- No funding rate on weekends or holidays
- Settled 4 times during the trading day
The perpetual contract price is thus kept relatively close to the spot price because of the funding rate mechanism.
Funding settlements will be made from the begin block; the maximum number of position settlements for each block is 1,000. The chain will only execute funding settlements during the settlement period.
If the funding rate is positive, payment will be made to the user account. If the funding rate is negative, payment will be deducted from the user’s margin account.
For a start, MarginX offers 3 underlying assets in the cryptocurrency category: BTC, ETH and FX.
The short answer is: YES!
Through governance, MarginX allows anyone to add any asset from any category they desire, including equities, cryptocurrencies, commodities, carbon credits, and any DeFi compatible asset.
This means that every asset with a monetary value can be supported by MarginX.
Stay tuned to find out more.
On the MarginX desktop platform, click on ‘My Assets’ on the top right corner. You will be redirected to the positions page where you can view all your assets.
- Choose trading pair
At the top left hand corner of MarginX on desktop, click on the drop-down arrow to scroll the list of available assets and select your preferred trading pair.
- Open position
To start an open position, click ‘Open’ on the right. Decide if you want to open at the ‘limit’ price or the ‘market’ price.
For limit orders
Enter your order price and the number of assets you want to trade. You can enter it manually or utilize the percentage drag. The order will be filled when the market price matches your specified order price.
For market orders
Enter the number of assets you want to trade manually or utilize the percentage drag.
- Choose leverage
You can choose your leverage up to a maximum of 5x.
- Initiate position
To open a long position, click ‘Going Long’.
To open a short position, click ‘Going Short’.
Double check and acknowledge the transaction details before clicking on ‘Confirming’ to approve the trade.
- Notification on f(x)Wallet
In your f(x)Wallet mobile app, you will be notified of the transaction. Tap sign and verify your identity to place the order.
- Pending Orders
You can view your pending orders by clicking on the ‘Open Orders’ tab at the bottom of MarginX. You can either wait for the transaction to be carried out or cancel the pending order.
For more details about each position, you can click on the transaction ID under ‘Tx Hash’ in the ‘Open Orders’ tab to access the transaction details on f(x)Explorer.
- Open Positions
For successful orders, you can view your positions by clicking on the ‘Positions’ tab. You can also easily add to your margin or close your position in this tab.
- Order History
To view all your order records, click on the ‘Order History’ tab. This includes open orders, filled orders, cancelled orders, capital fee collection records, and more.
For more details about each position, you can click on the transaction ID under ‘Tx Hash’ in the ‘Order History’ tab to access the transaction details on f(x)Explorer.
- Positions Tab
Under the Positions tab, click on ‘Add Margin’ for the position that you would like to add funds to.
Enter the amount of USDT you would like to add, or drag the percentage bar to indicate how much percentage of your available balance you want to add.
- Notification on f(x)Wallet
In your f(x)Wallet app, you will be notified of the transaction. Tap sign and verify your identity to place your order.
Liquidation happens when a trader is not able to meet the margin requirements for an open leveraged position (i.e. not having enough funds to keep the trade open).
When the margin rate falls under the maintenance margin rate, the user’s position will be liquidated.
All open orders are immediately cancelled, while the remaining positions and transaction fees will be assigned to the insurance clearance reserves.
- Monitor margin rate
You must closely monitor your contract margin rate in order to avoid liquidation. A portion, if not all, of your positions will be liquidated by the platform when your margin rate exceeds 100%.
- Maintain adequate amount of margin
By adding more margin into your position, the liquidation price will improve as your margin balance increases.
Please make sure that your derivatives account has sufficient margin balance in the event of a drastic market price fall.
- Do not exacerbate losing positions by adding to them
Before adding to further losses and if you have already decided that you want to preserve what’s left of your capital, it is important to rethink and reorganize your current strategy.
Do not let emotions such as greed or fear get in the way of good judgement. Knowing when to cut your losses is key to being a successful trader.
- Smaller position size
When you trade with a modest position size, the size of the position represents a relatively small portion of your overall account balance.
For margin traders, a small trading size aids in securing a sufficient maintenance margin, allowing them to manage risks when challenged with market volatility.
Under the ‘Positions’ tab, click the ‘Close Position’ icon on the position you would like to close.
For limit orders, enter your closing price in USDT and the number of assets you want to close. The order will be filled when the market price matches your specified order price.
For market orders, enter the number of assets you want to close. Remember to check through your transaction details and acknowledge it before clicking on the “Confirming” button to confirm your order.
- Notification on f(x)Wallet
You will be notified of the transaction. Tap sign and verify your identity to place your order.
There are two ways to disconnect, either from your desktop or your f(x)Wallet.
Click on the ‘Logout’ button next to your MarginX address at the top right hand corner of your screen.
In your phone app, tap on the MarginX Wallet Connect pop-out tab and tap on the red ‘Disconnect’ button at the bottom of the screen.
Rates & Fees
MarginX offers one of the lowest gas fees across all the DEXes available in the market, at approximately $0.0003.
The transaction fee rate on MarginX is 0.04%.
Initial margin is the minimum amount you have to pay to open a leveraged position.
For example, you can buy $10,000 worth of TSLA shares with an initial margin of 1,000 USDT (with 10x leverage).
Therefore, your initial margin will be 10% of the total order. Initial margin is what backs your leveraged position, acting as collateral.
MarginX runs on a utility NFT system, where each NFT is tied to a wallet address, and determines each wallet’s voting rights, trading rebates and referral fees.
This opens up the avenue to build a sense of community, and offers users an additional and perpetual source of yield.
Currently, we have launched the Elementals species, which consists of 5 gemstones representing 5 alliances: Citrine, Emerald, Onyx, Topaz and Sapphire.
The MarginX Referral Programme is where you earn rewards simply by referring your friends. As a market affiliate, you refer new users onto the platform and your referral rank is used to determine the percentage of your trading rebates, referral commissions, and votes you can cast for a governance proposal.
So, the more friends you refer to MarginX, and the more they trade, the more commissions you earn.
Let’s take a look at an example:
Let’s say you refer Annie, and she makes a transaction of 1,000 USDT.
- 1. Transaction Fees
Her transaction fees are calculated by taking 0.04% of her total transacted value.
- 2. Commission
Calculation – 0.04% x $1000 USDT gives you 0.4 USDT.
You will earn 5% of the 0.4 USDT which gives you 0.02 USDT.
And that is based on 1 trade per day only.
- 3. Scalable
If Annie makes 10 trades per day, the total commission per day is $0.02 x 10 trades, which gives you $0.2 USDT.
Multiply that by 365 days a year – $0.2 x 365, you get $73 per year.
This scales as Annie trades more, and as you refer more friends to MarginX using your referral link by basically sitting back and relaxing.
Follow these steps to generate your personal referral link.
- Head to https://trade.marginx.io
- Connect your wallet
- Once connected, roll your cursor over your wallet address at the top right hand corner to access a drop-down list
- Click on “Get Referral Link”
- Input your email address in the pop-up
- Click “Submit”
- Copy and share your personal referral link!
New users are not given an NFT at the beginning.
However, any new user who joins via a referral link will receive a Starter-ranked NFT that entitles them to a 5% rebate on all transaction fees and another 5% commission from the transaction fees of all of their referees.
In addition, MarginX holds regular contests and trading competitions with different tiered NFTs as rewards, so be sure to keep a lookout.
An upgrade in rank means an upgrade in commission amount and benefits.
For example, a Common rank would entitle you to 20% of commissions, a Rare, 30%, and more. This potentially allows you to increase your earnings exponentially, and in a sustainable manner.
You may refer to the NFT rank table for more information.
Participating in competitions with different tiered NFTs as rewards puts you in a better position to win an upgraded NFT.
As your referral volume grows, you’ll have a chance of upgrading the rank of your NFT to Common, Rare and so on.
Users can own more than 1 NFT but only the highest-ranked NFT in the wallet will be recognized.
You can find your NFTs in your f(x)Wallet. Look for the NFT Tab under the MarginX Section.
No. All your rewards are tied to your NFT and tracked on the blockchain so we don’t miss a single transaction, and you basically get to reap the rewards, forever.
At MarginX, funds are traded through non-custodial wallets, and all leveraged positions take place on-chain, ensuring they are truly secure, verifiable, transparent, and instantaneous.
This means that MarginX does not rely on any third party to hold the assets. These assets are controlled and owned by the user alone — as long as they remember their private key. Everyone has full visibility and access to the transactions made, which are recorded on the blockchain.