Kucoin Futures has officially announced the launch of a new USDT-margined perpetual contract for Fragusdt, marking a significant development for traders interested in emerging digital assets. The contract went live on July 2, 2025, at 07:00 UTC, offering leveraged exposure up to 20x with a tick size of 0.00001 and a contract size equivalent to 10 Frag per unit. Settled in USDT and rebalanced every four hours, this addition expands the platform’s suite of advanced trading instruments.
Designed for both novice and experienced traders, the Fragusdt perpetual contract operates on a 24/7 trading model, allowing continuous market access without time restrictions. With a funding rate cap set at +2.00% and -2.00%, the mechanism helps stabilize price alignment between the perpetual contract and the underlying spot market, reducing extreme volatility risks during periods of high demand or liquidation pressure.
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Understanding the Fragusdt Perpetual Contract Specifications
The newly launched Fragusdt-Margined perpetual contract is structured to provide precision and flexibility. Each contract represents 10 units of the base asset—Frag—and uses a minimal tick size of 0.00001, enabling fine-grained price movements ideal for technical traders who rely on tight spreads and accurate order execution.
Leverage is adjustable from 1x to 20x, giving users control over their risk exposure based on market conditions and personal strategy. Higher leverage amplifies both potential gains and losses, making risk management essential when engaging in futures trading.
Settlement occurs every four hours in USDT, simplifying profit and loss calculations for traders holding positions across multiple cycles. This frequent settlement reduces counterparty risk and ensures that funding payments are processed regularly, contributing to overall market fairness and transparency.
It's important to note that Kucoin reserves the right to adjust parameters such as tick size, maximum leverage, and maintenance margin rates in response to changing market dynamics. These adaptive measures help maintain platform stability during periods of high volatility or low liquidity.
Why Fragusdt Matters in Today’s Crypto Market
While detailed information about the underlying asset "Frag" remains limited, its listing on a major derivatives platform like Kucoin signals growing market interest. Assets listed as perpetual futures often experience increased trading volume and visibility, attracting arbitrageurs, algorithmic traders, and speculative investors alike.
Perpetual contracts have become a cornerstone of modern cryptocurrency trading due to their flexibility, lack of expiration dates, and built-in funding mechanisms that keep prices closely tied to the spot market. For emerging tokens like Frag, being available in a leveraged trading environment can accelerate adoption and improve price discovery.
Traders should remain cautious, however. Emerging assets often exhibit higher volatility and lower liquidity compared to established cryptocurrencies like Bitcoin or Ethereum. This increases slippage risk and the likelihood of sudden price swings—especially during news events or large trades.
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How to Get Started with Kucoin Futures
Entering the world of futures trading requires preparation. Kucoin offers web-based and mobile application interfaces that support seamless navigation through order placement, position management, and portfolio tracking.
To begin:
- Ensure your account is verified and funded with USDT.
- Navigate to the Futures section and locate the Fragusdt-Margined perpetual contract.
- Choose between cross or isolated margin modes depending on your risk tolerance.
- Set your desired leverage (up to 20x) before opening a position.
- Monitor funding rates and upcoming settlement times to optimize entry and exit points.
Using stop-loss orders and take-profit levels is strongly recommended to manage downside risk. Given the 24/7 nature of crypto markets, automated tools such as trading bots can also assist in executing predefined strategies without constant manual oversight.
Frequently Asked Questions (FAQ)
Q: What is a USDT-margined perpetual contract?
A: It's a type of futures contract where margin and profits are denominated in USDT (Tether), a stablecoin pegged to the U.S. dollar. Unlike traditional futures, perpetual contracts have no expiry date and are kept in line with spot prices through periodic funding payments.
Q: When does the Fragusdt contract settle?
A: Settlement occurs every four hours—at 00:00, 04:00, 08:00, 12:00, 16:00, and 20:00 UTC. During these intervals, open positions are marked-to-market and funding fees are exchanged between longs and shorts.
Q: Is leverage safe for beginners?
A: Leverage magnifies both gains and losses. While it allows traders to control larger positions with less capital, it also increases the risk of liquidation. Beginners should start with lower leverage (e.g., 2x–5x) and practice risk management techniques before scaling up.
Q: Can I trade Fragusdt on mobile?
A: Yes. Kucoin’s mobile app supports full futures functionality, including chart analysis, order placement, and real-time notifications for price alerts and funding rate changes.
Q: What happens if my position gets liquidated?
A: If your margin falls below the maintenance threshold due to adverse price movement, the system will automatically close your position to prevent further losses. You may lose part or all of your initial margin in this process.
Q: How is the funding rate calculated?
A: The funding rate is determined by the difference between the perpetual contract price and the index price. It incentivizes balance between long and short positions. Rates are charged or paid every eight hours, regardless of whether you hold a position at that exact moment.
Risk Considerations in Futures Trading
Futures trading involves substantial risk and is not suitable for all investors. Price fluctuations in digital assets can be extreme, leading to rapid gains—or significant losses—within minutes. Historical performance does not guarantee future results.
Forced liquidations can occur when market movements exceed a trader’s margin buffer, especially under high leverage. To mitigate this risk, traders should use proper position sizing, diversify strategies, and avoid overexposure to any single asset.
Market gaps, network delays, or sudden regulatory news can also impact execution quality. Always treat futures trading as a high-risk activity requiring continuous education and disciplined execution.
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In summary, the introduction of the Fragusdt perpetual contract enhances Kucoin’s competitive positioning in the global derivatives market. As more traders seek opportunities beyond mainstream coins, platforms offering early access to niche assets gain strategic advantage—provided users approach with knowledge and caution.