USDC Linear Perpetuals: Collateral, P&L, and Position Sizing
Summary
This guide explains how USDC-collateralized linear perpetuals differ from BTC-collateralized inverse contracts. Both can express exposure to a cryptocurrency against the dollar, and equivalent positions can produce the same dollar profit or loss. Their settlement currency differs: inverse-contract gains are paid in BTC, while linear-contract gains are paid in USDC.
That distinction changes the account’s passive exposure. BTC held as collateral fluctuates in dollar value, while USDC is designed to maintain a stable dollar value. The guide also explains that linear contract size is set in units of the underlying asset, whereas inverse contract size is fixed in dollar terms; conversions between units may be rounded. Multiple ALT-USDC contracts can share collateral. The exchange example supports these mechanics, but this is product documentation rather than independent performance analysis. It notes that only ERC-20 USDC deposits are supported and that USDC options were not then available.
Key ideas
- Inverse contracts use BTC as collateral and pay profits in BTC, while linear contracts use USDC and pay profits in USDC.
- Equivalent inverse and linear positions can have matching dollar P&L even though their settlement assets differ.
- BTC collateral leaves an account exposed to changes in BTC’s dollar value when no position is open.
- Linear contract size is specified in units of the underlying asset, while inverse contract size is dollar-denominated.
- USDC collateral can be shared across multiple listed linear perpetuals.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.