> For the complete documentation index, see [llms.txt](https://docs.chainbitx.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.chainbitx.com/help-center/eng/readme/trading-guide/basics-of-contract-trading/basic-contract-trading-rules.md).

# Basic Contract Trading Rules

**Activation and Permissions**

Users not activated: can only view market data, cannot place orders or trade. The contract trading feature is by default deactivated for all new users. This means users who have not completed contract permission activation can only browse market data such as various coin prices, order book, and K-line charts, but cannot perform any actual order placement or trading operations. This is to reduce the risk of new users making mistakes that could cause financial losses, ensuring users fully understand the contract mechanism and risk management principles before engaging in live trading.

New users must complete identity verification before activating contract permissions. To ensure platform compliance and user account security, ChainBitX requires all users who wish to participate in contract trading to first complete platform real-name authentication (KYC). The verification process typically involves uploading ID documents and facial recognition steps. Once verification is successful, users can manually activate contract trading permissions in the account settings. The platform will display relevant risk warnings before contract permissions are activated to ensure users are informed and confirm their understanding.

**Contract Asset Account**

A contract account is automatically created by default; users can transfer funds from the spot account to the contract account. To simplify user operation, ChainBitX automatically creates a dedicated contract asset account after new user registration. This account is independent of the spot account and is dedicated to managing funds needed for contract trading. Users can freely transfer funds between spot and contract accounts using the "Fund Transfer" feature without fees. Transfers are instant, enabling users to quickly adjust positions and capital allocation. Additionally, to help users manage fund distribution, the system clearly displays balances, frozen funds, and transfer records for each account on the asset page.

Note that after transferring funds to the contract account, if there are open positions or pending orders in the account, some funds will be automatically frozen as margin. Users are advised to reasonably allocate transfer amounts based on actual position needs to ensure smooth trading and controlled risk.