Platform Specifications
This section outlines Stella Trade's trading features, covering supported order types, collateral requirements, margin modes, leverage limits, and funding mechanisms.
Order Types
Stella Trade provides users with straightforward order mechanisms focused on ensuring efficient order fulfillment and liquidity access. The supported order types include:
Limit Orders Market-fill orders that execute upon reaching a specified trigger price. This setup allows users to set price conditions for triggering trades.
Market Orders Traditional “taker” orders are executed against available liquidity from market makers. These orders are filled immediately at the best available price.
Collateral Types
Stella Trade exclusively supports USDC as collateral for all positions. Users should be able to seamlessly swap into USDC through native DEX routing provided on the platform, allowing easy integration of multiple asset types with consistent margin and settlement.
Margin Modes
Both traders and market makers utilize a cross-margin system, where all open positions within an account share the same margin pool. Cross-margining accounts for the combined unrealized PnL of all positions when determining liquidation thresholds.
This configuration improves capital efficiency and simplifies risk management:
Trader’s Account Health: Determined by the initial margin and the cumulative unrealized PnL of all active positions in the sub-account.
Market Maker Position Monitoring: Handled via an internal platform engine that ensures margin adequacy for active trades.
Users can create multiple sub-accounts, each maintaining its own isolated margin, ensuring that positions and risks are confined within that specific sub-account and unaffected by others.
Leverage Allowance
Stella Trade supports leverage to enhance capital efficiency and user experience:
Traders: Up to 100x leverage, depending on the asset pair.
Market Makers: Leverage aligned with Binance’s limits for equivalent assets. Non-standard pairs are subject to protocol-defined limits.
Funding Rate Mechanism
Funding fees are applied periodically to ensure alignment between contract prices and the underlying index. The key funding rate settings and calculations are as follows:
Funding Interval: Every 8 hours.
Payment Timing: Applied automatically at each funding interval.
Fixed Interest Rate: 0.01% (1 basis point), aligned with industry standards like Binance Futures.
Funding Rate Formula
The funding rate is calculated based on the following formula:
This formula includes a clamp function that limits the effective funding rate within a predetermined range to prevent excessive fluctuations.
Premium Index
The Premium Index represents the discrepancy between Stella Trade’s internal trading prices and the reference Index Price from external markets. It is calculated using the difference between the Impact Bid/Ask Prices (average execution prices within Stella Trade) and the Index Price. This index helps to determine the relative premium or discount at which the asset is traded on Stella Trade, forming a critical part of the funding rate calculation.
Sampled every interval and averaged over an hour, this index ensures a fair and balanced funding rate by smoothing out short-term price variations and preventing exploitation from minor price fluctuations.
Maximum Range
Type
Value
Floor
-2%
Cap
+2%
| Note: The funding rate range applies to all supported trading asset pairs, regardless of the maximum leverage.
Payment Mechanism
Funding payments are deducted from the margin balance at each interval:
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