AscendEX has compiled an FAQ detailing the process of using staked assets as collateral for futures trading. Please read the FAQ for reference if you encounter issues.

 

1.     What assets can be used as futures margin while being staked?

AscendEX now supports 16 assets to be used as collateral for futures trading while being staked, including USDT, BTC, ETH, USDC, ATOM, DOT, XTZ, KAVA, BAND, SRM, ONE, CSPR, XPRT, PORT, AKT, WOO, and more will be supported soon. Please enter the AscendEX Staking page to view more details. 

 

2.     Can all of the staked assets be used as futures margin?

No. The amount of the staked assets that can be used as collateral for futures trading is pegged to the discount factor of the futures to be traded with the staked asset. Collateral = assets * index price * discount factor, i.e., the amount of the staked assets and the staking rewards that can be used as futures margin combined = the staked assets (the staking rewards included) * index price of the assets * discount factor. Please note: the collateral that can be used for futures trading are assets that have been transferred to their futures account and calculated with the discount factor in USDT. 

 

3.     Can staking rewards be used as futures margin?

Yes. If users transfer their staked assets to their futures accounts as futures margin, the users’ staking rewards will be automatically transferred to their futures accounts as collateral for futures trading. However, the reward tokens of some staking projects are different from the staked assets, in some situations there are multiple reward tokens distributed for a single staking project. Users should take note when the reward token of a staking project is not supported to be used as collateral for futures trading. If a reward token of a staking project is not supported as futures margin, the portion of staking rewards in the token can’t be used as collateral for futures margin. For instance, SRM is supported to be used as futures margin while being staked and the reward tokens for staking SRM are SRM and SRMLCK. Since SRMLCK is not supported as futures margin, the portion of staking rewards in SRMLCK can‘t be used as collateral for futures margin. 

Please note: AscendEX currently supports 16 assets that can be utilized as futures margin while still being staked, among which only SRM has two reward tokens; SRM and SRMLCK.  The latter is not supported as futures margin Collateral. Besides SRM, all the other staking assets support the use of their reward tokens as collateral for futures trading. 

 

4.     How will staking rewards be distributed after staked assets are used as futures margin?

After staked assets are used as futures margin, and the reward token is supported for use as collateral for futures trading, the portion of staking rewards of the token will be distributed to users’ futures accounts, where users can view the details regarding their rewards. If their assets are not supported, the portion of staking rewards denominated in the unsupported token will be distributed to users’ investment accounts, where users can view the details on the rewards. 

For instance, SRM is supported to be used as futures margin while being staked and its staking reward tokens are SRM and SRMLCK. Since SRM is supported as futures margin, the portion of staking rewards in SRM will be distributed to users’ futures accounts, while the portion of staking rewards in SRMLCK will be distributed to users’ investment accounts, because SRMLCK is not supported to be used as collateral for futures margin. 

Please note: AscendEX currently supports 16 assets to be used as futures margin while being staked, among which only SRM has two reward tokens of SRM and SRMLCK, with the latter not supported as futures margin, which means the portion of staking rewards in SRMLCK will be distributed to users’ investment accounts. Besides SRM, all the other assets are supported to use their reward tokens as collateral for futures trading, which means the rewards from staking the assets will be distributed to users’ futures accounts. 

 

5.     Is there any difference between staked assets and regular assets in terms of discount factor while being used as futures margin? How to view the factors?

No. A certain amount of fees are charged to the account for the instant redemption of staked assets, which is reflected in the discount factor for staked assets while being used as futures margin. Therefore, it leads to a slight difference in the amount of tokens between staked assets and regular assets in terms of discount factor while being used as futures margin. Please enter the Collateral Info page to view the discount factors of staked assets.  

 

6.     How to operate to enable staked assets to be used as futures margin?

Open the My Staked Assets page, select the specific token you want to use as futures margin on the list of staked assets and click to transfer the selected staked assets displayed as “Token-S” to your futures account from your investment account. After the transfer is completed, users can trade futures using the staked assets as collateral.  

Please refer to How to Participate in Futures Trading with Staked Assets (PC) for more details on the mechanism behind this product feature. 

 

7.     How to transfer staked assets to the futures account?

Staked assets need to be transferred from the investment account to the futures account first before using them as collateral for futures trading. The staked assets to be transferred is displayed as “Token-S”. For instance, you have participated in BTC Staking and plan to use the staked BTC as collateral for futures trading. You need to transfer the staked asset displayed as “BTC-S” to your futures account from your investment account.

 

8.     What do the assets displayed as “Token-S” stand for?

The assets displayed as “Token-S” represent the balance of assets being staked. The system will automatically generate mapped assets to represent the balance of assets being staked. Users need to select the assets displayed in the form of “Token-S” while transferring staked assets from the investment account to the futures account. 

 

9.     Can users set up the margin mode for staked assets used as futures margin?

Yes. Like regular futures margin, the specific margin mode of staked assets used as futures margin is subject to the margin mode adopted by the current positions held in users’ futures accounts. Users can switch between isolated margin mode and cross-margin mode. For instance, if you adopt the cross-margin mode for your positions, the staked assets used as futures margin will be subject to the cross-margin mode. 

 

10.   Can users stop using their staked assets as futures margin anytime?

Yes. Users can stop using their staked assets as futures margin anytime according to their specific trading needs by simply transferring their staked assets (displayed as “Token-S”) back to their investment accounts from their futures accounts. However, if you have opened futures positions with the staked assets, a portion of the staked assets may have been used as collateral to support the positions and can’t be redeemed, which means you can’t have all your staked assets transferred back to your investment account at once. If you haven’t opened any positions with the staked assets, you can receive all of your staked assets back immediately by transferring them to your investment account. 

 

11.  What if users want to redeem their staked assets engaged in futures trading?

If users want to redeem their staked assets that have been used as futures margin, they need to transfer their staked assets back to their investment accounts from their futures accounts first, and then redeem them by following the regular unstaking process. Please note that if you have opened futures positions with the staked assets, a portion of the staked assets may have been used as collateral to support the positions and can’t be redeemed immediately, which means you can’t have all of your staked assets transferred back to your investment account at once. If you haven’t opened any positions with the staked assets, you can transfer all of your staked assets back to your investment account.

 

12.  Are there extra fees required for instant unstaking automatically executed by the system when a forced liquidation occurs?

No. The amount of the staked assets that can be used as collateral for futures trading is pegged to the discount factor of the futures to be traded with the staked asset. i.e., the amount of the staked assets and the staking rewards that can be used as futures margin combined = the staked assets (the staking rewards included) * index price of the assets * discount factor. As discount factors have taken into account the instant unstaking fees when calculating the amount of the staked assets that can be used as futures margin, users do not need to pay extra fees for instant unstaking automatically executed by the system when a forced liquidation occurs. 

 

13.  Can the staked assets transferred to a futures account be retransferred to the margin account?

Yes. It depends on whether the staked assets are supported as collateral for both margin and futures trading. To date, AscendEX has enabled staked assets to be used as collateral for both margin and futures trading, which means staked assets can be transferred between the investment account, margin account, and futures account. If the staked assets being transferred are supported as collateral for both margin and futures trading, they can be easily transferred between futures and margin accounts.