# FAQ #### 1. **What is an NFT perpetual contract on NFEX?** An NFT perpetual contract is a financial instrument that enables traders to take a short or long position on the floor price of NFTs, using a fraction of ETH as collateral. For further information on NFT perpetuals, please refer to our documentation at . #### **2. What is my leverage?** The maximum leverage available to users is 50x. However, if a user chooses not to fully leverage their positions, their effective leverage could be lower. $$Effective Leverage =\frac{Position Notional Value}{Account Equity}$$ #### **3. What is cross-margin mode?** Cross-margin mode is a feature that allows users to open multiple positions using the same collateral. NFEX only allows cross-margin mode to ensure the highest capital efficiency for its users. #### **4. What is the last price?** Why is the last price different from the mark price on NFEX ? The last price is the most recent traded price of a perpetual contract on NFEX. The mark price, on the other hand, is an estimated fair price that considers the reasonable value of an asset to prevent unwarranted liquidations. The reason why the last price might differ from the mark price is because the last price only reflects the most recent transaction, while the mark price is calculated using a formula that incorporates multiple data points such as the Impact Mid, price 1, and price 2. For more information on mark and last price, please refer to our documentation at #### **5. How do you calculate the Index Price?** The NFT index price (NFEXI ) is determined by taking the average price of the floor price and the top bid for a particular NFT collection. $$NFEXI=\frac{Floor Price+Top Bid}{2}$$ Where: The Floor Price is the lowest floor price of the constituent exchanges. Learn more: #### **6. How do you calculate the funding rate?** The funding rate is calculated over the last hour as follows: $$FR\_{current} = \frac{(Mark Price-NFEXI){\div} NFEXI}{24}$$ Learn more: #### **7. What is the difference between the liquidation price and the bankruptcy price?** Liquidation price: The liquidation price is the price at which a trader's position is automatically liquidated by NFEX when their account equity falls to the maintenance margin level. This is the point at which the mark price reaches the liquidation price. Bankruptcy price: The bankruptcy price is the point at which user's account equity is reduced to to 0. Learn more: #### **8. What is Auto-deleveraging(ADL)?** When a trader’s position is liquidated, the position is taken over by the liquidation engine. If the liquidation order cannot be filled at the bankruptcy price and the insurance fund runs out, the ADL system automatically deleverages opposing traders’ positions by profit and leverage priority. Learn more: #### **9.** What are your requirements for listing a new NFT perpetual contract? NFEX primarily focuses on popular blue-chip projects, but occasionally evaluates promising NFT projects for potential listing. The key indicators we consider include trading volume, floor price, and the number of unique owners. If you would like to request the listing of a project, please raise it in our Discord channel: #### **10. What is the maximum size of positions that I am allowed to open?** The maximum position size per trading pair is 100 ETH per account. If you wish to increase your position limit, please contact us via Discord and submit an application. {% hint style="success" %} ## **Join Our Community** * **Twitter**: * **Discord**: [https://discord.gg/nf](https://discord.gg/nfex)ex * **Medium**: [https://medium.com/@nfex.official](https://medium.com/@nfex.official/) {% endhint %} --- # Agent Instructions: 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: ``` GET https://nfex.gitbook.io/docs/getting-started/faq.md?ask= ``` The question should be specific, self-contained, and written in natural language. 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.