KuCoin Perpetual Futures Setup

Connect your KuCoin Futures account to SignalBee for automated perpetual contract trading. This guide walks you through enabling futures trading, creating API keys with KuCoin's unique three-value authentication system, and configuring your account for automated signals.

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Prerequisites

Before you begin, make sure you have:

• Verified KuCoin account - Identity verification (KYC) completed
• 2FA enabled on KuCoin - Required for API key creation
• Trading password set - Required for sensitive operations
• Futures trading enabled - Must activate Futures account on KuCoin
• SignalBee account - Ready to connect an exchange
• Password manager - For storing your API credentials securely (you'll need to store THREE values)

Important: KuCoin Futures is a separate account from KuCoin Spot. You must explicitly enable Futures trading and transfer funds to your Futures wallet before you can trade.

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About KuCoin Futures

KuCoin Futures is a major cryptocurrency derivatives platform offering perpetual contracts:

Order Type Support

SignalBee supports these KuCoin Futures order types:

Time in Force Options (Limit Orders)

Note: Unlike some exchanges, KuCoin Futures does not yet support stop-loss orders through SignalBee. Use your signal provider's stop-loss logic or set stops manually on KuCoin.

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KuCoin's Three-Value API System

CRITICAL: Read this section carefully. KuCoin uses a three-value authentication system that differs from most exchanges.

Understanding the Three Values

Unlike exchanges like Binance (which only require API Key + Secret), KuCoin requires three separate values:

Important Distinctions

Warning: If you forget your API Passphrase, there is no way to recover it. You must delete the API key and create a new one with a new passphrase.

Why Three Values?

KuCoin's three-value system provides an extra layer of security:

1. API Key - Identifies which key is making the request
2. API Secret - Proves you control the key (signs the request)
3. Passphrase - Additional user-defined secret (also signed and verified)

Even if an attacker obtained your API Key and Secret, they would also need your Passphrase to make requests.

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Enabling Futures Trading on KuCoin

You must complete this section BEFORE creating your API key. If you create an API key without enabling Futures first, the key may not have Futures capabilities.

Step 1: Log In to KuCoin

1. Go to www.kucoin.com
2. Log in with your email/phone and password
3. Complete 2FA verification

Step 2: Navigate to Futures

1. Hover over Derivatives in the main navigation menu
2. Select Futures from the dropdown
3. Or go directly to futures.kucoin.com

Step 3: Activate Futures Account

If this is your first time:

1. KuCoin will prompt you to Open a Futures Account
2. Click the activation button
3. Read and accept the Futures trading agreement
4. Your Futures account is now active

Step 4: Transfer Funds to Futures Account

Funds must be in your Futures Account, not your Main Account:

1. Go to Assets in the top navigation
2. Click Transfer
3. Select Main Account as the source
4. Select Futures Account as the destination
5. Choose the currency (e.g., USDT)
6. Enter the amount to transfer
7. Click Confirm

Important: Your Main Account balance does NOT affect Futures trading. You must explicitly transfer funds to trade futures.

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Creating Your API Key

Follow these steps carefully. Remember: you must save THREE values.

Step 1: Access API Management

1. Go to www.kucoin.com and log in
2. Complete 2FA verification (authenticator app or SMS)
3. Click your profile icon in the top-right corner
4. Select API Management from the dropdown menu

Step 2: Create a New API Key

1. Click the Create API button
2. Select API (not "Trade Bot API")

Step 3: Configure Your API Key

1. API Name: Enter SignalBee Futures
2. API Passphrase: Create a strong passphrase
   • Use letters, numbers, and symbols
   • Make it different from your other passwords
   • SAVE THIS IMMEDIATELY - you'll need it for SignalBee

Critical: The API Passphrase is created by YOU, not generated by KuCoin. Write it down before proceeding. If you lose it, you must create a new API key.

Step 4: Set Permissions

Configure these specific permissions:

Step 5: IP Whitelist (Optional)

You can restrict your API key to only work from specific IP addresses:

1. Toggle IP Restriction if desired
2. Contact support@signalbee.trade for SignalBee's production IP addresses
3. Add each IP address to the whitelist

If you skip this step, select No Limit for IP access.

Step 6: Complete Security Verification

KuCoin requires verification:

1. Enter your Trading Password
2. Enter the 2FA code from your authenticator app
3. Complete email verification if prompted

Step 7: Save ALL THREE Values Immediately

After verification, KuCoin displays your credentials:

Warning: If you close this page without copying your API Secret, you'll need to delete this API key and create a new one. There is no way to recover a Secret. Similarly, if you didn't save your Passphrase, you'll need to start over.

Save all THREE values in your password manager now before proceeding.

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Configuring Permissions

After creating your API key, verify the permissions are correct.

Required Permissions

Optional Permissions

Never Enable These Permissions

Critical: You MUST enable the Futures permission. Without this, SignalBee cannot place futures orders even if your API key is valid.

How to Edit Permissions

1. In API Management, find your SignalBee Futures API key
2. Click Edit next to the key
3. Verify General and Futures are checked
4. Make sure Withdrawal is NOT checked
5. Click Save
6. Complete verification (trading password + 2FA)

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Adding to SignalBee

Now connect your KuCoin Futures API key to SignalBee.

Step 1: Go to Exchanges Page

1. Log in to your SignalBee account
2. Navigate to Exchanges in the main menu

Step 2: Add New Exchange

1. Click the Add Exchange button
2. Select KuCoin Perpetual from the exchange list

Critical: Make sure you select KuCoin Perpetual, NOT "KuCoin". These are different exchange connections for different account types.

Step 3: Enter Your Credentials

SignalBee requires ALL THREE values:

Remember: The passphrase is NOT your trading password and NOT your login password. It's the value you created specifically for this API key.

Step 4: Test the Connection

1. Click Save and Test Connection
2. Wait for SignalBee to verify your credentials
3. Look for the success message

Step 5: Verify Your Setup

After successful connection:

1. Your KuCoin Futures balances should appear in SignalBee
2. Check that your USDT balance matches your Futures Account
3. If you see your Main Account balance instead, you may have selected the wrong exchange type

Tip: If balances don't appear or show $0, verify that:

• You selected "KuCoin Perpetual" (not "KuCoin")
• Your API key has the Futures permission enabled
• You have transferred funds to your Futures Account

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KuCoin Futures-Specific Considerations

Ticker Format

KuCoin Futures uses a unique ticker format with some important differences:

Conversion Rules:

1. Remove the hyphen (BTC-USDT → BTCUSDT)
2. Convert BTC → XBT (BTCUSDT → XBTUSDT)
3. Add 'M' suffix for perpetual (XBTUSDT → XBTUSDTM)

Important: XBT is KuCoin's symbol for Bitcoin on Futures. This is a historical convention from BitMEX. SignalBee handles this conversion automatically.

Contract Types

SignalBee primarily supports USDT-margined perpetual contracts.

Account Structure

KuCoin has multiple account types:

Critical: Funds in your Main Account or Trading Account cannot be used for Futures. You must transfer to your Futures Account first.

Trading Fees

Tip: Hold KCS (KuCoin Token) in your account for fee discounts.

API Rate Limits

• KuCoin imposes rate limits on API requests
• SignalBee handles rate limiting automatically with exponential backoff
• If you see rate limit errors, reduce your signal frequency

Testnet for Practice

KuCoin provides a Futures testnet for practice:

• Testnet URL: api-sandbox-futures.kucoin.com
• Create separate testnet API keys
• Practice trading without risking real funds
• Test your signal configurations before going live

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Position Mode and Margin

Position Mode

KuCoin Futures only supports One-way Mode:

Important: If you're coming from Binance or Bybit where you used Hedge Mode, be aware that KuCoin does not support this. You cannot hold both long and short positions on the same symbol simultaneously.

Margin Types

Setting Leverage

Leverage is configured per trading pair:

1. Open the trading page for your desired pair
2. Find the leverage selector
3. Choose your desired leverage (1x to 100x)
4. Confirm the change

Recommendation: Start with 5x leverage or less until you're comfortable with futures trading. Higher leverage means faster liquidation.

Understanding Liquidation

When your position losses exceed your margin:

• Your position is automatically closed (liquidated)
• You lose the margin allocated to that position
• With cross margin, liquidation uses more of your Futures balance

Liquidation price is shown on each open position. Always know your liquidation price before entering a trade.

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Troubleshooting

Common KuCoin Futures errors and solutions:

Authentication Errors

Futures-Specific Errors

Order Errors

Common Passphrase Confusion

The most common error is Invalid Passphrase (400003). Remember:

If you can't remember your API Passphrase, you must:

1. Delete the API key in KuCoin
2. Create a new API key
3. Create and carefully save a new passphrase

Connection Test Fails?

If your connection test fails in SignalBee:

1. Verify exchange selection - Must be "KuCoin Perpetual", not "KuCoin"
2. Triple-check all THREE values - API Key, Secret, AND Passphrase
3. Verify Futures permission - Most common cause of failed connections
4. Check Futures is enabled - You must have activated Futures on KuCoin
5. Wait a few minutes - New API keys may take 1-2 minutes to activate
6. Check IP whitelist - Disable IP restriction temporarily to test

Funds Show as $0?

If SignalBee shows $0 balance:

1. Verify exchange type - "KuCoin Perpetual" shows Futures balance, "KuCoin" shows Spot balance
2. Transfer funds - Funds must be in Futures Account, not Main Account
3. Check General permission - API key needs General (read) permission enabled

For persistent issues, see our Error Codes Reference or contact support@signalbee.trade.

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Risk Warnings

CRITICAL: Perpetual futures trading carries significant risk. Read this section carefully.

Leverage Amplifies Both Gains AND Losses

Higher leverage = faster liquidation. A 1% adverse price movement with 100x leverage results in complete loss.

Liquidation is Automatic and Final

• When margin is depleted, your position is forcibly closed
• You lose the entire margin allocated to that position
• There is no way to recover from liquidation
• Liquidation fees apply on top of losses

Funding Rates Affect Position Costs

• Perpetual contracts have funding payments every 8 hours
• If you're long and funding is positive, you pay shorts
• If you're short and funding is positive, you receive payment
• Funding can significantly affect profitability of longer-term positions

Risk Management Best Practices

• Start with low leverage (5x or less) until experienced
• Always set stop-losses (manually on KuCoin until SignalBee supports them)
• Never trade with funds you can't afford to lose
• Size positions appropriately - don't risk entire account
• Understand your liquidation price before entering trades
• Monitor funding rates for held positions
• Practice on testnet first before trading real funds
• Consider isolated margin to limit maximum loss per trade

Not Suitable For

Futures trading may not be appropriate if you:

• Are new to cryptocurrency trading
• Cannot afford to lose your entire investment
• Don't understand leverage and liquidation mechanics
• Are unable to monitor positions regularly
• Have high risk aversion

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Security Best Practices

Follow this checklist to keep your KuCoin account secure:

KuCoin Account Security

• Enable 2FA with an authenticator app (Google Authenticator, Authy) - more secure than SMS
• Set a strong trading password different from your login password
• Use a unique, strong password for KuCoin login
• Enable withdrawal address whitelist - restricts withdrawals to pre-approved addresses

API Key Security

• Create a dedicated API key just for SignalBee Futures
• Never enable withdrawal permission - SignalBee never needs it
• Consider IP whitelisting for maximum security
• Never share any of your three credentials via email, chat, or screenshots
• Store all THREE values in a password manager (1Password, Bitwarden, etc.)
• Use separate API keys for Spot and Futures if using both

Passphrase Security

• Create a unique passphrase for each API key
• Make it different from your other passwords
• Save it immediately when creating the API key - cannot be recovered
• Store it securely in your password manager

Ongoing Security

• Review your API keys periodically - delete any you don't recognize
• Rotate API keys every 90 days as a security habit
• Monitor trade and position history for unauthorized activity
• Keep your email secure - it's used for KuCoin account recovery

Security Note: Even with all precautions, the most important protection is never enabling withdrawal permissions. Without this permission, your funds cannot be moved off the exchange even if everything else is compromised.

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Related Resources

• KuCoin Spot Setup - For spot trading on KuCoin (also uses three-value API)
• Bitget Perpetual Setup - Another exchange that uses a passphrase system
• API Key Best Practices - General API key security guidance
• Security Overview - How SignalBee protects your data
• Error Codes Reference - Common error messages explained