Binance Futures launches perpetual contracts for COOKIE, ALCH, and SWARMS, offering up to 75x leverage

Binance Futures is preparing to introduce three new USD-margin perpetual contracts for the tokens COOKIE, ALCH, and SWARMS. These contracts will provide traders with the opportunity to leverage up to 75x, opening up high-risk, high-reward trading strategies. These contracts are based on the projects associated with Cookie DAO (COOKIE), Alchemist AI (ALCH), and Swarms (SWARMS), which are already listed under Binance’s Alpha Market. The introduction of these new contracts aims to provide users with more options to speculate on the price movements of these tokens, without having to own the underlying assets themselves.

The launch of these contracts will follow a specific schedule. The COOKIEUSDT perpetual contract will go live at 11:30 UTC, followed by ALCHUSDT at 11:45 UTC, and SWARMSUSDT will follow shortly after at 12:15 UTC. Despite the launch of these contracts, Binance assures traders that they will still be able to trade these contracts normally during the network upgrade. However, the deposit and withdrawal services for the tokens will be temporarily halted during the upgrade process.

The perpetual contracts will be settled in Tether (USDT) and available for trading around the clock, 24/7. Binance Futures also introduces the Multi-Asset Mode for these contracts, which allows users to use various alternative assets like Bitcoin (BTC) as margin, providing traders with more flexibility. The contracts come with a funding rate that can fluctuate, with a maximum increase or decrease of 2.00% every four hours. This funding rate is an important element for traders to consider as it determines the cost of holding a position overnight. Additionally, the contracts will have minimal move increments of 0.0001 for COOKIE and SWARMS, and 0.00001 for ALCH, with the possibility of Binance adjusting these parameters based on market conditions to better manage risks.

Perpetual contracts allow traders to speculate on the price movements of assets without actually owning the underlying tokens. This makes them especially attractive for day traders or those looking to capitalize on short-term price fluctuations. However, it’s important to note that while these new contracts will be available for trading, their launch does not imply that the tokens COOKIE, ALCH, or SWARMS will be listed on Binance’s spot market.

Binance has also taken the step of providing verified contract addresses for each of the tokens involved in these contracts to ensure transparency and prevent fraud. The addresses for COOKIE, ALCH, and SWARMS are provided directly by Binance and are available for users to verify before trading. Traders are strongly encouraged to read Binance’s Terms of Use and Futures Service Agreement before engaging with these contracts, as futures trading is inherently high-risk.

In addition to these contract-specific details, Binance has highlighted that they may adjust leverage, margin requirements, and funding fees as necessary, based on prevailing market conditions. This flexibility is important in managing risk, especially in a highly volatile market like cryptocurrency. Given the high leverage offered—up to 75x—traders should be fully aware of the potential for both significant gains and substantial losses.

Binance Futures is a platform designed for crypto derivatives trading, offering users the ability to trade contracts based on cryptocurrency price movements without actually owning the tokens. The platform supports high leverage, different types of contracts, and advanced trading features such as hedging and cross-margin, making it suitable for both professional traders and those looking to take on more speculative trades. However, as with all high-leverage products, users must exercise caution and ensure they understand the risks before proceeding with these types of trades.

The addition of the COOKIE, ALCH, and SWARMS perpetual contracts is an example of Binance expanding its offerings in the futures market and responding to the demand for more diverse trading products that cater to different risk appetites. With these new contracts, Binance is giving traders the tools to potentially benefit from significant price movements in these emerging tokens, while also providing robust risk management tools like Multi-Asset Mode and adjustable funding rates to protect users.

As the contracts roll out, it will be crucial for traders to stay informed about potential changes to the parameters or conditions of these contracts. For traders interested in getting involved, Binance urges them to carefully consider their risk tolerance and familiarize themselves with the specifics of each contract, ensuring they are prepared for the volatility inherent in cryptocurrency trading.