# What is the U-standard By [BTC](https://paragraph.com/@btc-63) ยท 2022-08-24 --- 1. What is the U-standard (1) Introduction "Whether you are long or short BTC or ETH or other coins, you will need to fill your contract account with USDT, and the final loss or gain will be settled in USDT. (2) Features of the Coin U standard contract Settlement in USD-linked assets: Contracts are denominated and settled in USDT or BUSD. Expiry periods: perpetual and quarterly Clear pricing rules: each contract specifies the number of units of delivery of the underlying asset of the individual contract, also known as "contract units". For example, similar to the spot market, the BTC/USDT, ETH/USDT and BCH/USDT contracts represent only one unit of their respective underlying assets. (3) Difference between a currency standard and a U-standard "Coin-based", refers to the opening of positions as well as the final delivery, using the corresponding underlying product, for example, if you want to go long or short BTC, you need to fill the contract account with BTC, and the final loss or gain, are also settled in BTC. A cryptocurrency-based contract refers to a contract made with a coin other than USDT, using the coin as margin. In the case of Bitcoin, for example, a cryptocurrency-based contract is one that uses Bitcoin to earn Bitcoin, and the profit or loss is settled in Bitcoin during the transaction, with the exact profit being calculated on the rise or fall in the value of the coin itself. For example, if you want to go long or short BTC, you need to fill your contract account with BTC, and the final loss or gain will be settled in BTC. The U-position, on the other hand, is to use USDT as margin, and the profit or loss of the contracts made will be settled in USDT. Or understand it this way, "U-standard" means that the USDT is used as the liquidity certificate for opening and final settlement of positions, whether long or short BTC or ETH or other currencies, you need to fill the contract account with USDT, and the final loss or gain will be settled in USDT. (4) Advantages of U-based contracts The U-based contract is a linear contract that is quoted and settled in USDT or BUSD. The biggest advantage of settling in USDT or BUSD is the ease of calculating returns in fiat currency. This makes U-native contracts more intuitive. For example, if 1 BUSD is worth approximately US$1, then after earning a profit of 500 BUSD, it is easy to work out that the profit earned is approximately US$500. In addition, a common settlement currency such as USDT or BUSD can significantly increase trading flexibility. Multiple futures contracts can use the same settlement currency (e.g. BTC, ETH, XRP, etc.) without having to buy the underlying token to fund the contract position. As a result, there is no need to exchange additional currencies when trading via USDT, eliminating the need for extra fees. In times of high market volatility, U-based contracts can effectively reduce the risk of large price fluctuations. Therefore, there is no need to worry about hedging the exposure to the underlying margin of the contract. 2. The content introduced above is only about the basics of cryptocurrency, which is related to whether we can make money through cryptocurrency. Cryptocurrencies make money not only by scientific methods to increase income, but also by finding ways to save money. The handling fees are small, but they must not be ignored. I have calculated that with frequent transactions and long trading hours, the accumulation of fees can add up to more than 10,000 U a year. Next I will introduce a few common ways to reduce fees on large trading platforms. (1) Lowering Binance's fees Binance is currently the world's largest digital currency exchange, and you must sign up for Binance if you want to speculate on coins. The transaction fee is deducted from the assets received. For example, if you buy Ethereum/USDT, the fee is paid in Ethereum. If you sell Ethereum/USDT, the commission is paid in USDT. Example. You place an order for 10Ethereum at a price of USD3,452.55 per share. Transaction fee = 10Ethereum_0.1% = 0.01Ethereum Or you place an order to sell 10Ethereum at 3,452.55 USDT per share. Transaction fee = (10Ethereum_3,452.55USDT)\*0.1% = 34.5255USDT What many people do not know is that the Binance transaction fee can also be reduced. If you want to reduce your Binance trading fees, you must register using the invitation link below or use the invitation code "Q022W7SC". [https://accounts.binance.com/en/register?ref=Q022W7SC](https://accounts.binance.com/en/register?ref=Q022W7SC) ![](https://storage.googleapis.com/papyrus_images/667e39208611aea7d2fd22c499d4eddc6a5929ef0df3fc18a5386a953e7d8286.png) (2) Reducing OKX fees OKX is a professional digital currency trading platform loved by many users, and its transaction fees can be reduced. Depending on the volume of transactions, OKX divides its users into two levels: normal and professional. Ordinary users are graded according to their OKB positions, while professional users are graded according to their trading volume and asset size. The different tiers determine the trading fees for the next trading day. When calculating the fee levels, if the coin trading volume, total trading volume of delivery and perpetual contracts (USDT delivery contract, coin-based delivery contract, USDT perpetual contract, coin-based perpetual contract), option contract trading volume, and asset volume meet the conditions of different fee levels, users will enjoy the fee discount of the highest level. First method: OKX has an official maximum saving of 20%. Use the link below to register with OKX and save 20% on fees. [https://www.ouyi.business/join/BTC1ETH](https://www.ouyi.business/join/BTC1ETH) Second method: Open the OKX website and enter "BTC1ETH" in the "Invitation Code" on the registration page to see the cashback percentage: 20% at the bottom. Be sure to enter this invitation code, otherwise you can not get 20% cashback percentage. (3) Reduce FTX fees FTX is currently a very fast-growing, contract players more exchange, you must register FTX if you play the contract. if you want to reduce the FTX transaction fees, you must use the following invitation link to register. [https://ftx.com/referrals#a=121031692](https://ftx.com/referrals#a=121031692) 3, trading road is long, together with forward Want to know more about how to reduce the commission? telegram: btcethcool We have set up a community dedicated to researching trading, add telegram friends to pull you into the community. --- *Originally published on [BTC](https://paragraph.com/@btc-63/what-is-the-u-standard)*