Coinbase International Caps Perpetual Futures Leverage at 10x

Despite reaching the cap, users can still transact but must comply with default initial margin requirements.

Coinbase International Caps Perpetual Futures Leverage at 10x
Coinbase International Caps Perpetual Futures Leverage at 10x

The overseas branch of the cryptocurrency exchange Coinbase, known as Coinbase International Exchange, situated in the United States, will cap the trading leverage for its perpetual futures products at 10x.

The exchange’s popular perpetual futures contracts, which include Bitcoin, Cardano, Ether, Litecoin, Solana’s SOL, XRP, and other cryptocurrencies, are subject to the limit as stated in the release made on December 28th.

Furthermore, traders utilizing a leverage of 10x will have their ability to hold a notional value of up to $90,000 across all perpetual contracts limited.

According to the clarification provided by the company, traders who hit 10x leverage limits can still transact, but they must adhere to the default initial margin (DIM) requirements for their accounts. DIM for Coinbase International perpetuals can range anywhere from twenty percent (five times leverage) to forty percent (two and a half times leverage), depending on the digital assets.

After obtaining a class F licence from the Bermuda Monetary Authority (BMA), Coinbase International began offering clients the opportunity to engage in perpetual futures trading on September 28.

“These limits are reviewed frequently — influenced by the exchange’s order book depth, volumes, and stress testing results against insurance fund balances. We aim to provide best access to 10x leverage for customers, while balancing systemic risks for all traders associated with higher leverage trading.”

Before opening a Coinbase Advanced trading account, customers must undergo a test to determine their eligibility for the product.

Coinbase International Exchange is only available to users who are not from the United States and who reside in certain countries. It was in May that the foreign exchange made its debut in Bermuda, following a crackdown by the United States Securities and Exchange Commission on its eponymous parent company in the United States.

During that period, the exchange lauded the regulatory environment of Bermuda for its “high level of transparency, compliance, and cooperation.”