When you first open Bybit derivatives page, you may wonder: why are there two types of BTC contracts? One is USDT Perpetual, the other is Inverse Perpetual. Both are leveraged, have no expiry, and track spot price. The real difference is only one question: what currency do you use as margin, and in what currency are profits/losses settled? Once you get this, everything else makes sense.

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https://partner.bybit.com/b/BYOFFICIAL

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A perpetual contract is a derivative with no expiry date. You can go long or short without physical delivery. To keep the contract price close to spot, Bybit uses a Funding Fee mechanism: at regular intervals, the dominant side pays the other side. Funding intervals vary by contract (commonly 8h, 4h, or 1h), check the position page for exact schedule.

The terms USDT or Inverse determine how margin and PnL are calculated.

This is the most common type on Bybit. Core feature: margin and settlement are both in USDT (a USD-pegged stablecoin).

• Open a BTC long with USDT-M, your PnL is priced in USDT.
• Calculation is linear: price moves $1, you gain/lose $1 per contract.
• One USDT margin account can trade BTC, ETH, SOL, etc., no need to deposit each coin separately.
• Usually best liquidity, tightest spreads, most beginner-friendly.

Example: BTC at 60,000 USDT, 1x long 1 BTC.

• Margin ≈ 60,000 USDT (no leverage).
• If price rises to 63,000: unrealized profit = 1 × (63,000−60,000) = 3,000 USDT.
• At 10x leverage, margin ≈ 6,000 USDT, same 5% price rise gives 3,000 USDT profit, ROI ≈ 50% (before fees & funding).

Inverse contracts are quoted in USD, but margin and settlement use the base coin itself. For BTC Inverse, margin and PnL are in BTC.

Example: You hold 0.5 BTC, open a long on BTC Inverse. If BTC rises, profit is credited in BTC; if BTC falls, your BTC balance drops in value and contract loss is also deducted in BTC.

Why "Inverse"? Because the contract structure is opposite to linear: as price changes by the same amount, the coin-denominated position value changes non-linearly, following an inverse relationship. The further price moves, the more volatile the coin-denominated PnL becomes.

Non-linear example: BTC 60,000, deposit 0.1 BTC as margin (≈6,000 USDT), 1x long.

• Rises to 63,000: USD profit ≈ 300 USD; settled in BTC ≈ 0.00476 BTC; total equity ≈ 0.10476 BTC.
• Rises to 120,000: USD profit ≈ 6,000 USD; settled in BTC ≈ 0.05 BTC; total equity ≈ 0.15 BTC.

With 1x USD notional, coin-margined profit changes with price level. Long profit increases coin count; short profit also pays in coin.

Choose USDT-M if:

• You are a beginner who wants simple math and easy risk control.
• Your capital is in stablecoins, you don't hold BTC/ETH yet.
• You trade multiple pairs and want one shared margin account.

Choose Inverse/Coin-M if:

• You hold spot coins long-term and want to use them as margin.
• Your goal is to increase coin quantity: long profit settles in coin, accumulating more BTC/ETH without selling.
• You want to hedge your spot holdings against downside risk.

Pro tip: Long-term holders often use Inverse contracts for "keep coins, open positions" dual effect. If your base is USDT, USDT-M is almost always more convenient.

Step 1: Register & Deposit. Use https://partner.bybit.com/b/BYOFFICIAL, enter BYOFFICIAL, complete KYC. Deposit USDT for USDT-M, or deposit BTC/ETH for Inverse.

Step 2: Enter Derivatives, Pick Contract. Choose USDT Perpetual or Inverse Perpetual.

Step 3: Select Margin Mode. Cross uses total balance as collateral; Isolated limits risk to single position. Beginners should start with Isolated.

Step 4: Set Leverage & Order. Higher leverage = closer liquidation price. Start low.

Step 5: Set TP/SL on entry. Mandatory discipline for leveraged trading.

Step 6: Watch Funding Rate. Holding through settlement times incurs funding costs.

Step 7: Enable MNT Deduction. In fee settings, turn on MNT fee deduction and hold MNT to stack with BYOFFICIAL for up to 58% discount.

• Trading Fee: Percentage of volume. BYOFFICIAL gives 33% base discount; with MNT deduction, up to 58% off. Actual rate depends on account tier, pair, maker/taker, region.
• Funding Rate: Periodic payment between longs and shorts. Cannot ignore for swing/position trades.
• Liquidation Fee: Charged when margin is insufficient. Usually higher than regular fees.
• Slippage: Large orders, low-liquidity pairs, or some Inverse contracts may have wider slippage than USDT-M.

1. Don't use all balance as margin. Keep buffer for volatility.
2. Set stop-loss on every position. No exceptions.
3. Start with low leverage. Inverse contracts are non-linear; high leverage is riskier.

Advanced tips: Max loss per trade = total capital × acceptable drawdown %; monitor margin ratio, unrealized PnL, funding net payment; reduce leverage before major data releases.

1. Do perpetual contracts expire?
No. Both USDT-M and Inverse share this; difference is only margin and settlement currency.

2. Can I add referral code after registration?
No. Must enter BYOFFICIAL at sign-up via https://partner.bybit.com/b/BYOFFICIAL.

3. Which is better for beginners?
USDT-M, because it's linear, intuitive, and has better liquidity.

4. Why is it called Inverse?
Coin-denominated value changes inversely to price, unlike linear USDT contracts.

5. What currency is profit paid in for BTC Inverse long?
In BTC. Profit increases your coin count.

6. Can margin be transferred between USDT-M and Inverse?
Not directly. Need to transfer out then deposit to the other account per platform rules.

7. What is Funding Rate?
Periodic fee between longs and shorts to keep contract price close to spot.

8. Does BYOFFICIAL discount apply to both contract types?
Yes, on trading fees. Check official fee page for specific pairs and account types.

9. Higher leverage = higher profit?
It amplifies both profit and loss; liquidation risk rises accordingly.

10. Where to register for benefits?
Use code BYOFFICIAL and link: https://partner.bybit.com/b/BYOFFICIAL.

11. How to enable MNT deduction?
In fee preferences, toggle on MNT deduction and hold MNT balance.

12. Cross or Isolated margin?
Small accounts or testing: Isolated. Multi-pair active trading: Cross (with strict total risk control).

13. Is Inverse good for hedging?
Yes, if you hold spot, shorting the same coin on Inverse can hedge downside.

14. Is 58% discount guaranteed?
No, requires BYOFFICIAL base discount + MNT deduction active + eligible pair/account. Actual rate at settlement prevails.

15. When is funding collected?
At each contract's funding timestamp if you hold a position. Day trades closed before settlement avoid it.

Leveraged contract trading carries high risk and may result in total loss of margin. Rules, fees, funding rates, leverage limits vary by region, account level, and platform policy. This article is for informational purposes only, not investment advice. Only trade with funds you can afford to lose.

The difference between USDT Perpetual and Inverse comes down to: what currency is used for margin and settlement. USDT-M uses stablecoins, linear and suitable for most. Inverse Coin-M uses base coins, non-linear, ideal for long-term holders accumulating coins or hedging.

Choosing the right contract type is the first step in risk management. If you don't have an account, register now to secure benefits. My Bybit referral code is BYOFFICIAL.

🔗 https://partner.bybit.com/b/BYOFFICIAL

Register via this link and enable MNT deduction for up to 58% fee discount and new user benefits.