Futures Trading

Futures Trading Platform Software

Enterprise futures trading software with verified risk management - insurance fund, ADL, liquidation engine, cross/isolated margin, funding rates. Production-ready and battle-tested.

Futures Trading Platform Overview

Cryptocurrency futures trading has become one of the highest-volume segments of the market. Our futures platform software provides everything needed to operate a professional derivatives exchange, from the trading engine to risk management systems.

Verified Risk Management

Unlike many exchange scripts that claim features without implementation, our risk engine is verified and production-ready:

FeatureStatusDetails
Insurance FundImplementedPer-asset balance, auto contribution/payout, audit trail
Auto-DeleveragingImplementedScore-based ranking, 0-5 user indicator, automatic execution
Liquidation EngineImplemented5-second monitoring, partial liquidation, 1.5% fee
Cross MarginImplementedShared balance, automatic margin pooling
Isolated MarginImplementedPer-position margin, add/reduce controls
Funding RatesImplemented8-hour settlement, premium + interest calculation
Mark PriceImplemented6-exchange aggregation, manipulation resistant

Perpetual Contract Features

Perpetual futures have become the dominant derivatives product due to their simplicity and flexibility:

Contract Specifications

  • No expiry date - positions can be held indefinitely
  • Linear contracts settled in USDT or other stablecoins
  • Inverse contracts settled in the base cryptocurrency
  • Configurable contract multipliers and tick sizes
  • Support for major pairs (BTC, ETH, BNB, SOL, etc.)

Leverage System

  • User-adjustable leverage up to 125x
  • Real-time leverage modification
  • Tiered leverage limits based on position size
  • Visual leverage slider with risk indicators

Margin Modes

  • Cross margin shares balance across all positions
  • Isolated margin limits risk to individual positions
  • Switch between modes for open positions
  • Clear margin utilization display

Order Types

Professional traders need advanced order capabilities:

  • Limit Orders - Specify exact entry price
  • Market Orders - Immediate execution at best price
  • Stop-Loss Orders - Automatic exit at specified price
  • Take-Profit Orders - Lock in gains automatically
  • Trailing Stop Orders - Dynamic stop that follows price
  • Post-Only Orders - Ensure maker fee pricing
  • Reduce-Only Orders - Only close existing positions

Risk Management

The platform includes enterprise-grade, verified risk controls:

Liquidation Engine

  • Background worker monitors positions every 5 seconds
  • Compares mark price against liquidation price
  • Partial liquidation at 25% threshold (configurable)
  • 1.5% liquidation fee deducted from notional
  • Atomic position updates with complete audit trail

Insurance Fund

  • Automatically receives 50% of liquidation surplus
  • Covers negative equity when positions go bankrupt
  • Per-asset balance tracking with full history
  • Admin dashboard for monitoring and injection
  • Alert thresholds for low balance warnings

Auto-Deleveraging (ADL)

  • ADL Score = PnL Percentage × Leverage
  • Ranks opposing positions by score (highest first)
  • Processes up to 10 positions per execution
  • 0-5 light indicator shows user’s queue position
  • WebSocket notifications for ranking changes

Mark Price Oracle

  • Aggregated from 6 exchanges (Binance, OKX, Bybit, KuCoin, HTX, MEXC)
  • Median calculation with outlier filtering
  • Manipulation resistant through multi-source verification
  • Fallback mechanisms for exchange outages

Funding Rate Mechanism

Funding rates keep perpetual prices aligned with spot markets:

  • Calculated every 8 hours (00:00, 08:00, 16:00 UTC)
  • Based on premium/discount versus spot index
  • Paid between long and short traders
  • No platform fee on funding payments
  • Historical funding rate data available

Trading Interface

The user-facing trading platform includes:

Chart and Analysis

  • TradingView integration with full indicator suite
  • Multiple timeframe selection
  • Drawing tools and saved layouts
  • Order visualization on chart

Order Management

  • One-click order placement
  • Order modification and cancellation
  • Position averaging interface
  • Bulk order operations

Portfolio View

  • Real-time P&L tracking
  • Position summary across markets
  • Margin utilization metrics
  • Trade history and statements

Admin Controls

Complete back-office management for operations:

Symbol Management

  • Create and configure trading pairs
  • Set leverage tiers and limits
  • Configure margin requirements
  • Enable/disable trading

Risk Monitoring

  • Platform-wide exposure view
  • Large position alerts
  • Liquidation queue monitoring
  • Insurance fund management

User Controls

  • Position and order viewing
  • Manual position intervention
  • Trading limit adjustments
  • Risk flag management

Reporting

  • Trading volume statistics
  • Fee collection reports
  • Liquidation analysis
  • Funding rate history

Technical Infrastructure

Performance

  • High-throughput order matching
  • Real-time position calculations
  • WebSocket price streaming
  • API rate limits for fair access

Reliability

  • Automated position monitoring
  • Failover for critical systems
  • Database replication
  • Backup and recovery procedures

Integration with Spot Trading

The futures platform integrates with spot trading for a complete exchange:

  • Shared user accounts and balances
  • Transfer between spot and futures wallets
  • Unified API and WebSocket feeds
  • Single admin panel for all markets

Mobile Trading

Mobile apps include full futures functionality:

  • All order types available
  • Position management
  • Real-time P&L updates
  • Push notifications for liquidations
  • Biometric authentication

Getting Started

The futures module can be deployed standalone or with spot and P2P trading. Contact our team to discuss your requirements and see a live demo of the platform.

Frequently Asked Questions

What types of futures contracts are supported?
The platform supports perpetual futures (no expiry date) with both linear contracts (settled in stablecoin) and inverse contracts (settled in the base cryptocurrency). Additional contract types can be configured based on your requirements.
What leverage options are available?
Leverage is configurable per trading pair, with support for up to 125x. Users can adjust leverage in real-time and choose between cross margin (shared across positions) and isolated margin (per-position risk).
How does the liquidation engine work?
The liquidation engine monitors all positions continuously. When a position's margin ratio falls below the maintenance requirement, the position is liquidated at the bankruptcy price. An insurance fund covers losses beyond the bankruptcy price, and an auto-deleveraging system handles extreme market conditions.
What is the funding rate mechanism?
Funding rates are calculated every 8 hours to keep perpetual prices aligned with spot markets. Traders pay or receive funding based on their position direction. This creates arbitrage opportunities and ensures price convergence.
Can I set position limits per user?
Yes. You can configure maximum position sizes per symbol, user level, or individual account. This helps manage platform risk exposure and comply with regulatory requirements.

Ready to Launch Your Exchange?

Get a personalized demo and see how Codono can power your crypto exchange business.