NomoDEX
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The crypto-derivatives market has surpassed the crypto spot market in trading volume, driven by continuous expansion and the introduction of new products. While crypto derivatives introduce novel tradable assets, they share several characteristics with traditional derivatives. These derivatives, considered secondary contracts or financial instruments, derive their value from a primary underlying asset, such as Bitcoin.
NomoDEX represents a sophisticated feature created by Nomoex, providing traders with a state-of-the-art experience in decentralised perpetual futures trading. Cryptocurrency perpetual futures are financial instruments traded on digital asset exchanges, enabling traders to forecast the future prices of cryptocurrencies without a predefined expiration date.
Leveraged trading allows traders to amplify their positions by borrowing funds to increase their buying power. While leverage can amplify profits, it also introduces additional risks. NomoDEX addresses this challenge by offering a range of leverage mechanisms tailored to meet the diverse needs of traders.
The margin ratio serves as a gauge for assessing the risk associated with users' assets. Liquidation is triggered when the margin ratio falls at or below 0%. It is advised that you pay close attention to margin ratio changes, to avoid your positions from liquidation.
Insurance funds are established to mitigate losses incurred from forced liquidation. In a volatile market, users' positions may face liquidation. If orders cannot be executed at the takeover price, resulting in substantial losses exceeding the capacity of insurance funds, the platform will enact the "clawback" mechanism. Under this mechanism, profitable accounts in the current period compensate for the excess losses from liquidation based on their profit ratios.