A Pre-Market Perpetual Future is a perpetual Future available for trading before the underlying asset is listed for spot trading on the market (i.e., before it becomes available on both DEX and CEX spot markets). In terms of trading experience, pre-market Futures function similarly to standard perpetual Futures, with the only key difference being how the funding rate is calculated.
About Funding Rates
The funding rate consists of two components: interest rate and premium. Phemex applies a fixed interest rate of 0.03% per day.
Since there is no premium index available during the pre-market trading phase, the funding rate for pre-market Futures remains fixed at 0.005% per settlement period (funding is settled every 4 hours).
After the pre-market phase ends and a premium index becomes available, funding rates will follow standard perpetual Future rules, with funding rates ranging up to +2.00% / -2.00%.
Key Advantages
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Get early exposure to new Futures before they officially launch.
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Take advantage of volatility in trending tokens for profit opportunities.
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After the Future goes live on Phemex Derivatives, any open positions from pre-market Futures will seamlessly carry over to the standard perpetual Future.
When Does It Convert to a Standard Perpetual Future?
Once the underlying asset is listed on the spot market and its price stabilizes, the pre-market perpetual Future will be converted into a standard perpetual Future.
This process has minimal impact on users. We simply replace the index price with a weighted index derived from the spot market price. Users typically won’t notice any disruption.
However, if there is a significant price deviation between the spot market and the Futures market during the switch, liquidations may occur. Although a smoothing mechanism is applied during the transition, price volatility caused by market conditions cannot be fully controlled. Therefore, we recommend using lower leverage when trading pre-market Futures.
Trading Risks
1. Liquidity
Since there is no spot market for price anchoring and pricing is fully determined by the derivatives market, the order book depth may be lower than standard Futures. Trades may be executed less frequently. We recommend placing smaller order sizes to avoid unfavorable fills.
2. Price Volatility
Due to the absence of a spot price anchor and reliance solely on derivatives pricing, price volatility may be higher than in standard Futures. As a protective measure, pre-market perpetual Futures typically offer lower leverage to reduce the risk of liquidation under volatile market conditions.
