What are Bybit USDC contracts?

Bybit USDC contracts let traders speculate on crypto prices with stablecoin collateral, offering up to 100x leverage while reducing volatility risk and simplifying margin management.

Jul 23, 2025 at 01:42 am

Understanding Bybit USDC Contracts

Bybit USDC contracts are perpetual futures contracts that allow traders to speculate on the price of various cryptocurrencies—such as Bitcoin (BTC), Ethereum (ETH), and others—while settling in USDC, a stablecoin pegged 1:1 to the US dollar. Unlike traditional futures, these contracts have no expiration date, enabling traders to hold positions indefinitely. The key advantage lies in using USDC as collateral, which reduces exposure to the volatility of crypto assets like BTC or ETH when funding or maintaining positions.

How USDC Contracts Differ from Coin-Margined Contracts

Coin-margined contracts on Bybit require traders to use the underlying cryptocurrency (e.g., BTC) as both collateral and profit/loss settlement. In contrast, USDC-margined contracts let users trade with stablecoin-backed positions. This means:

• Profits and losses are denominated in USDC, not BTC or ETH.
• Traders avoid liquidation risks caused by sharp drops in the value of their collateral coin.
• Margin calculations are simpler because USDC value remains stable relative to fiat.
  

  This structure appeals to traders who want to avoid crypto volatility in their account equity while still accessing high leverage—up to 100x depending on the contract and market conditions.

  How to Trade USDC Contracts on Bybit: Step-by-Step Setup

  
  To begin trading USDC contracts, follow these steps precisely:
• Log into your Bybit account and navigate to the Derivatives section.
• Select USDC Perpetual from the contract type menu.
• Choose your desired trading pair (e.g., BTC-USD).
• Deposit USDC into your Derivatives wallet via the Assets > Transfer tab.
• Set your leverage using the slider or input field near the order book.
• Place a long or short order using either limit, market, or conditional orders.
  

  Ensure your API permissions (if using bots) allow USDC contract trading. Also, confirm your account has passed KYC if required for higher limits.

  Key Features of Bybit USDC Contracts

  
  Bybit’s USDC contracts offer several advanced tools:
• Cross and Isolated Margin Modes: Cross uses your entire USDC balance as collateral; Isolated allocates only a set amount per position.
• Funding Rate Mechanism: Every 8 hours, traders pay or receive funding based on the difference between perpetual and spot prices—this keeps contract prices aligned with the underlying asset.
• Insurance Fund Protection: If liquidations occur, the insurance fund covers losses to prevent auto-deleveraging (ADL).
• Real-Time PnL Display: Your profit or loss updates instantly in USDC, making risk management transparent.
  

  These features make USDC contracts suitable for both beginners and experienced traders who prioritize stable collateral and precise risk control.

  Risks and Risk Management Tools

  
  While USDC contracts reduce some risks, they are not risk-free. Key dangers include:
• Leverage amplification: A 50x position turns a 2% price move against you into a 100% loss.
• Liquidation: If your position’s margin ratio hits the maintenance level, it’s automatically closed.
• Funding costs: Holding long positions during positive funding rates can erode profits over time.
  

  Use these tools to manage exposure:

  • Set stop-loss and take-profit orders for every trade.
  • Monitor your maintenance margin requirement in real-time on the position panel.
  • Adjust leverage dynamically based on market volatility—lower it during high-impact news events.
  • Enable price alerts to stay updated on key levels even when not actively trading.

  Frequently Asked Questions

  Q: Can I switch between USDC-margined and coin-margined contracts on the same Bybit account?
  
  Yes. You can toggle between USDC and inverse (coin-margined) contracts within the Derivatives interface without needing separate accounts. Just select the contract type before placing an order.

  Q: What happens if my USDC balance is too low to cover a margin call?
  
  If your available USDC falls below the required maintenance margin, Bybit will trigger a liquidation. You’ll lose the entire position margin, and any remaining deficit may be covered by the insurance fund—not your personal funds.

  Q: Are there fees for opening or closing USDC contract positions?
  
  Yes. Bybit charges a taker fee (for market orders) and a maker fee (for limit orders). As of the latest fee schedule, taker fees start at 0.06% and maker fees at 0.015%, though VIP tiers can reduce these. Funding fees are separate and paid every 8 hours.

  Q: Do I need to pay funding fees if I close my position before the 8-hour window?
  
  No. Funding fees are only charged if you hold a position at the exact funding timestamps (00:00 UTC, 08:00 UTC, 16:00 UTC). Closing before then avoids the fee entirely.