Trading Guide

Trading on Bitnue

Introduction

Bitnue is a decentralized perpetual exchange that eliminates traditional trading barriers by enabling permissionless trading without registration or KYC requirements. The protocol employs a sophisticated aggregated price feed system that combines data from major exchanges with oracle inputs, effectively minimizing the risk of premature liquidations from price wicks while ensuring accurate and manipulation-resistant price discovery.

Getting Started

To begin trading on Bitnue, you'll need a Web3 wallet such as MetaMask or Rabby. The protocol operates across multiple networks including Ethereum mainnet, BSC (Binance Smart Chain), Arbitrum, and Base, offering traders flexibility in choosing their preferred trading environment. After accessing the trading interface, connect your wallet through the "Connect Wallet" button. The system will automatically detect if you're on a supported network and prompt you to switch or add the network if necessary.

Since Bitnue operates as a decentralized protocol, all interactions occur through RPC (Remote Procedure Call) endpoints. Each supported network maintains specific RPC configurations that ensure reliable connectivity and optimal performance. If you experience any connectivity issues or slow response times, you can manually configure alternative RPC endpoints through your wallet settings, using our recommended URLs for each network.

Account Funding and Network Selection

Trading on Bitnue requires holding the native token of your chosen network to cover transaction fees. For Ethereum mainnet, Arbitrum, and Base, you'll need ETH; for BSC, you'll need BNB. The protocol provides multiple pathways to acquire these tokens, including direct purchases through our integrated "Buy" page or transfers from other networks using our bridging infrastructure. Our bridge page offers various options for transferring assets, each optimized for different requirements in terms of speed, cost, and security.

Trading Mechanics

Bitnue offers exceptional flexibility in trading with leverage up to 100x on major pairs, setting it apart in the decentralized perpetual exchange landscape. The leverage system employs sophisticated risk management protocols that scale dynamically based on market conditions, position size, and asset volatility. When trading with maximum leverage, the protocol implements additional safety measures and monitoring systems to protect both traders and the overall market stability.

Position types on Bitnue follow traditional perpetual futures mechanics. Long positions generate profits when the token price increases and losses when it decreases, while short positions operate inversely. The protocol supports over 100 trading pairs across various networks, each with multiple collateral options to suit different trading strategies.

The collateral system offers remarkable flexibility, allowing traders to optimize their positions based on their market outlook and risk management preferences. For instance, when trading ETH markets, traders can choose between using ETH or stablecoins as collateral. Using ETH as collateral for long positions provides double exposure – both from the leveraged position and the collateral itself – making it an effective strategy for traders strongly bullish on ETH. Conversely, using USDC as collateral isolates the position's exposure to just the leveraged trade, simplifying PnL calculations and risk management.

For short positions, the protocol enables sophisticated strategies such as delta-neutral trading. Traders can open short positions using ETH as collateral, effectively earning funding fees while maintaining underlying ETH exposure. This approach is particularly valuable during periods of high funding rates or market uncertainty.

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Order Types and Execution Mechanics

The protocol supports a comprehensive suite of order types, each designed to serve specific trading strategies and risk management approaches. Market orders provide immediate execution at the current aggregate price, with the final execution price determined through a sophisticated pricing algorithm that considers active liquidity, market impact, and current order flow. When placing a market order, the protocol's smart routing system will optimize execution by analyzing liquidity across the order book and determining the most efficient fill path to minimize slippage.

Limit orders on Bitnue implement a hybrid matching engine that combines off-chain order book maintenance with on-chain settlement. When placing a limit order, traders specify their desired entry price, and the order remains active until either filled, canceled, or expired. The execution of limit orders isn't guaranteed and depends on several factors including mark price movement, available liquidity, and leverage constraints. The protocol's mark price, derived from our aggregated price feeds, must reach the specified limit price, and there must be sufficient liquidity at that price level for the order to execute.

Take-Profit and Stop-Loss (TP/SL) orders provide automated position management tools crucial for risk control. Traders can set multiple TP/SL orders for each position, with up to 10 active orders permitted simultaneously. The Auto-Cancel feature, enabled by default, automatically removes associated TP/SL orders when a position is closed, preventing unintended executions on future positions. These orders operate on a mark price basis rather than last traded price, ensuring more reliable triggering and reducing the impact of temporary price spikes.

Risk Management and Liquidation Mechanics

The protocol employs a sophisticated liquidation system designed to protect both individual traders and overall market stability. Positions become eligible for liquidation when their maintenance margin ratio falls below the required threshold, which ranges from 0.4% to 1% depending on market conditions and asset volatility. This maintenance margin is calculated continuously using oracle prices rather than last traded prices, providing protection against manipulation and ensuring fair liquidation processes.

For positions using maximum leverage (100x), the protocol implements additional risk controls. These include more frequent position health checks, stricter maintenance margin requirements, and accelerated liquidation procedures when market conditions deteriorate rapidly. The liquidation price is dynamically adjusted based on funding fees and borrowing costs, making it crucial for highly leveraged traders to actively monitor their positions and maintain adequate collateral buffers.

Fee Structure and Economic Model

Trading Fees

• Opening Positions: • 0.05% when improving market balance • 0.07% when worsening market balance • Deducted from available margin at execution

• Closing Positions: • 0.05% when improving market balance • 0.07% when worsening market balance • Deducted from position PnL

Funding Rate System

• Calculation Periods: • 1-hour intervals for rate calculations • 8-hour intervals for payments • Real-time accrual system

• Rate Parameters: • Maximum Rate: ±0.75% per 8 hours • Minimum Rate: ±0.01% per 8 hours • Dynamic scaling based on market imbalance

Price Impact and Rebates

• Positive Impact: • Unlimited positive impact possible • Applied immediately to execution • Better fills than market price

• Negative Impact: • Rebate threshold: >1% for major pairs • Rebate threshold: >1.5% for other pairs • 80% rebate of impact beyond threshold • 10-day claim period for rebates • Maximum rebate: 5% of position size

Network Fees

• Order Placement: • Ethereum: ~0.001-0.005 ETH • Arbitrum: ~0.0001-0.0005 ETH • Base: ~0.00005-0.0002 ETH • BSC: ~0.0005-0.001 BNB

• Keeper Execution: • Displayed as "Max Network Fee" • Unused portion automatically refunded • 20% buffer above estimated cost • Configurable buffer (150-300%)

Volume-Based Discounts

• 30-day Volume Tiers: • $100k-$1M: 5% fee reduction • $1M-$10M: 10% fee reduction • $10M-$50M: 15% fee reduction • >$50M: 20% fee reduction

Staking Discounts

• Tier 1: 100+ tokens = 5% fee reduction

• Tier 2: 1000+ tokens = 10% fee reduction

• Tier 3: 10000+ tokens = 15% fee reduction

• Stacks multiplicatively with volume discounts

Position Management and Control

The protocol provides comprehensive tools for managing active positions across all supported markets. Each position's health and status is monitored in real-time through our advanced risk management system.

Position Modification Tools

Traders can modify existing positions through several key functions:

• Collateral Management: • Add collateral to improve margin ratio • Remove excess collateral when over-margined • Switch collateral types (e.g., ETH to USDC) • Minimum collateral buffer: 1% of position size

• Position Sizing: • Increase/decrease position size • Partial closures with proportional PnL realization • Position merging for same-direction trades • Size limits based on liquidity (up to 5% of pool)

• Leverage Adjustment: • Dynamic leverage modification • Maximum 100x on major pairs • Leverage restrictions during high volatility • Automatic deleveraging protections

Advanced Order Functions

Conditional Orders

• Entry Conditions: • Price triggers (above/below current price) • Time-based execution • Volume-based triggers • Custom indicator integration

• Execution Parameters: • Maximum price slippage settings • Minimum fill requirements • Custom execution timeframes • Chain-specific gas limits

Order Protection Features

• Execution Guards: • Maximum adverse price impact: 2% • Minimum liquidity requirements • Price deviation checks • Maximum execution delay: 15 seconds

• Advanced Take-Profit/Stop-Loss: • Multiple TP levels (up to 5 per position) • Trailing stop-loss functionality • Break-even stop-loss automation • Partial TP/SL execution

Risk Management

Liquidations

Positions are liquidated when:

• Losses approach collateral value

• Position falls below minimum collateral ratio (0.4% - 1% depending on market)

• Based on oracle price, not including impact

Protect against liquidation by:

• Monitoring position health

• Adding collateral through "Edit Position"

• Managing leverage responsibly

• Considering funding fees impact

Other Fees and Pricing

Price Impact

• Positive impact when improving market balance

• Negative impact when reducing market balance

• Rebates available for excessive negative impact

• Rebate claims unlock after ~10 days

Funding Rate

• Dynamic based on long/short ratio

• Paid/received continuously

• Claimable through interface

• Adapts to market imbalances

Borrowing Fees

• Applied to larger side of market

• Scales with pool utilization

• Prevents liquidity abuse

• Incentivizes balance

Network Fees

• Two-transaction execution model

• Keeper execution fee displayed upfront

• Excess fees refunded automatically

• Configurable max network fee

Advanced Features

One-Click Trading

• Enable through account settings

• Trades without signing prompts

• Limited to authorized action count

• Security features:

  • Funds return only to original wallet

  • Configurable trade limits

  • Instant deactivation option

Trading involves risks including but not limited to:

• Smart contract risk

• Liquidation risk

• Market risk

• Bridge risk (for cross-chain operations)

Please be aware and trade according to your level of risk tolerance.