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.

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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

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1. 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

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1. 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

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1. 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

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Summary

• USDT-M = Stable, simple, ideal for most traders

• Coin-M = Volatile, but great for users who want to accumulate crypto assets