What a perpetual futures contract is
According to MEXC's FAQ page, futures trading is derivatives trading based on the price movements of crypto assets, and unlike spot you do not need to hold the coin itself. MEXC's contracts are perpetual, meaning they have no expiry date, and the funding mechanism keeps their price close to the spot price. MEXC itself describes the product as high risk and notes that leverage amplifies both profit and risk. Leveraged trading can lead to a rapid loss of all the margin you deposited.
USDT-M contracts
In USDT-M contracts, margin and settlement are in USDT, a stablecoin. According to MEXC's guide, leverage on these contracts is freely adjustable from 1 to 500. The FAQ page makes clear, however, that as position size increases the maximum allowed leverage decreases, so the ceiling does not apply to every position size. MEXC supports two-way position holding: you can hold a long and a short on the same contract at the same time, with separate leverage for each direction. Order types are limit, market, plan orders, tracking orders and maker-only orders.
Coin-M contracts
In Coin-M contracts, margin and settlement are in a non-stablecoin crypto, such as BTC or ETH. According to MEXC's guide, for BTCUSD you transfer BTC into the Coin-M account as margin, and all profits and losses settle in BTC. On the BTCUSD and ETHUSD perpetual contracts leverage ranges from 1 to 125. A BTCUSD contract has a fixed size of $100, and an ETHUSD contract is worth $10. MEXC offers further Coin-M pairs, including SOLUSD, XRPUSD, DOGEUSD and LTCUSD. Here the exposure is double: to the position and to the value of the coin used as margin.
Isolated margin, cross margin and liquidation
When opening a position you choose a margin mode. In isolated mode, according to MEXC, a set amount of margin is allocated to the position. In cross mode, all positions in that mode share the asset's margin. In cross mode a loss on one position can affect the others. MEXC explains that when margin is insufficient to cover losses, the platform triggers liquidation and closes the position automatically. MEXC itself advises beginners to start with low leverage and raise it gradually with experience.
Funding payments
The funding rate is the mechanism that keeps the perpetual contract's price close to spot. According to MEXC, when the rate is positive, long holders pay short holders. When it is negative, short holders pay long holders. The payment is calculated as position value times the funding rate, and is generally settled every 8 hours, at 00:00, 08:00 and 16:00 UTC. MEXC states that it does not charge a fee on funding payments: the money passes between traders. The current rate is shown on the trading page, and the history on the Funding Rate History page.
What is the maximum leverage on MEXC?
MEXC publishes up to 500x on USDT-M contracts and up to 125x on the BTCUSD and ETHUSD Coin-M contracts. Maximum leverage decreases as position size increases.
What is the difference between USDT-M and Coin-M?
In USDT-M, margin and settlement are in USDT. In Coin-M they are in the crypto itself, for example BTC.
How often is funding paid?
Generally every 8 hours, at 00:00, 08:00 and 16:00 UTC.
Does MEXC charge a fee on funding?
No. According to MEXC, funding payments pass between long and short holders, and the exchange charges no fee on them.
This information is for learning and comparison, not investment advice. Verify product details and eligibility conditions against the current source.
About our methodology