Coinbase International Exchange said on Dec. 28 that it has set leverage limits to 10X on its various perpetual future contracts.

The company said in a post on X:

“Did you hear? We upgraded our leverage to 10x on all perpetual futures contracts, empowering you to execute more efficient trading strategies.”

In an attached help page, Coinbase International explained that users can continue to transact once they reach the 10X limit, but that new transactions are only permitted at leverage rates set out in its Default Initial Margin (DIM) rules.

In addition to the 10X cap, the company has set a maximum notional value limit of $90,000 that applies across all positions belonging to an Ultimate Beneficial Owner (UBO). Individual positions involving Bitcoin (BTC), Ethereum (ETH), and 13 other assets also have specific limits measured in the cryptocurrency itself.

Coinbase International noted on the same page it reviews limits frequently. It said that it may offer higher limits as its activity increases.

What are perpetual futures?

Perpetual futures are a type of derivatives contract through which traders can speculate on the futures price without a definite expiration date.

This type of investment is generally considered high-risk due to the possibility of maximized losses as well as gains through leverage. Coinbase acknowledged those risks, writing that the level of risk involved “may not be suitable for all investors.” It urged investors to consider their aims, risk appetite, and experience.

Coinbase International is the international trading arm of Coinbase. The platform launched in May 2023 with an initial focus on providing perpetual futures trading to institutional investors. It extended perpetual futures trading to retail investors in September and also added spot trading in December.

The company is regulated under the Bermuda Monetary Authority (BMA) and is only available to customers in some countries outside the U.S.