> For the complete documentation index, see [llms.txt](https://yubit.gitbook.io/yubit/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://yubit.gitbook.io/yubit/derivatives-trading/futures-faq/whats-the-difference-between-usdt-m-and-coin-m-perpetual-contracts.md). # What’s the Difference between USDT-M & Coin-M Perpetual Contracts? Perpetual contracts are typically offered in two formats: **USDT-Margined (USDT-M)** and **Coin-Margined (COIN-M)**. The main difference lies in what asset is used for margin, settlement, and PnL. *** 1. ### **Settlement Asset** #### **USDT-M Perpetuals** * Settled in **USDT** * Margin, PnL, and funding fees are all calculated in USDT * Lower volatility, easier for most users to manage #### **Coin-M Perpetuals** * Settled in the **underlying coin** (e.g., BTC, ETH) * Margin, PnL, and funding fees are calculated in that coin * Suitable for users who prefer holding or accumulating crypto assets *** 2. ### **Risk & Volatility Differences** #### **USDT-M** * Margin value is stable and **not affected by coin price volatility** * Easier to manage risk and maintain healthy positions #### **Coin-M** * Margin value **changes with the coin price** * When coin price drops → liquidation risk increases * When coin price rises → leverage becomes more powerful *** 3. ### **Which Users Are They Best For?** | User Type | USDT-M Perpetuals | Coin-M Perpetuals | | ----------------------------------- | ------------------------- | ----------------- | | Beginners | ✔ More intuitive & easier | ✘ Not recommended | | Stable yield seekers | ✔ Lower volatility | ✘ Less stable | | Users wanting to accumulate BTC/ETH | ✘ Not ideal | ✔ Best choice | | Long-term holders (HODLers) | Can be used | ✔ More suitable | *** 4. ### **Trading Experience Differences** #### **USDT-M Perpetuals** * More trading pairs available (e.g., BTCUSDT, ETHUSDT) * PnL is easy to understand and track * Suitable for short-term and active trading #### **Coin-M Perpetuals** * Favoured for long-term strategies * Often used in bull markets to **earn more BTC/ETH** * Slightly higher learning curve and entry barrier *** ### **Summary** * **USDT-M** = Stable, simple, ideal for most traders * **Coin-M** = Volatile, but great for users who want to accumulate crypto assets --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://yubit.gitbook.io/yubit/derivatives-trading/futures-faq/whats-the-difference-between-usdt-m-and-coin-m-perpetual-contracts.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.