Introduction of Bibox COIN-M Futures delivery

1、COIN-M Futures delivery

Bibox COIN-M Futures delivery is a digital currency futures product settled in BTC, LTC, ETH and other currencies. Each futures represents BTC worth $1, or other currencies (LTC, ETH, etc.). Investors can take advantage of rising or falling prices of digital currencies by buying long or selling short futures.

Taking the BTCUSD futures as an example, the elements are as follows:

Elements	Details
合约标的  Underlying futures	BTC／USD Index
Settlement/ Currency delivery	BTC
Face value	1USD
Price quotation	Quotation is based on USD price of 1BTC
Minimum variable price	0.01
Leverage	1-100 times
Trading hours	7 * 24 hours
Futures expirations	This week, Next week, This quarter, Next quarter
Futures delivery time	The futures expires at 4pm this Friday (HKT)
Rate of transaction fee	Trading fee details

2、Product features

(1)Coin-M Futures, easy to hedge;

Bibox Coin-M Futures use digital currency as settlement currency. The typical user group is hedging users, such as miners, who need to hold a certain currency for a long time.

(2) The maturity date

Each futures delivery has a fixed delivery date. The delivery price is the arithmetic average of the USDT index of BTC and other currencies in the last hour before delivery.

(3) Index price

Index price is a composite price index based on the weighted average of the trading volume with reference to the prices of a basket of major spot trading markets. Reference markets include Coinbase, Bitstamp, Kraken, Bitfinex, Binance, Huobi, OKEX, Bittrex, HitBTC, etc.

We also have some additional safeguards in place to avoid poor market performance due to price disruptions in the spot market or due to connectivity issues. These protection measures are as follows:

①Single price source deviation: When the latest price of an exchange deviates more than 5% from the median price of all price sources, the price weight of that exchange will be set to zero.

②Multiple price source bias: If the latest price on more than one exchange is biased by more than 5%, the median price from all price sources will replace its weighted average as the price index value.

③Exchange connection problem: If we cannot access the exchange's data source and the exchange has updated its trading data within the last 10 seconds, we can obtain the price data from the latest results and use it in the calculation of the price index.

If an exchange does not update its trading data within 10 seconds, it will have zero weight when calculating the weighted average.

(4) Price limit system

Bibox flexibly adjusts the order price range according to spot price and last minute futures price, and prevents illegal investors from maliciously smashing the order and creating a stock explosion on the premise of not affecting investors' normal order.

(5) Marked price system

Bibox adjusts on the basis of the mechanism of burst position in the futures market. In case of extreme price fluctuation, it will judge the burst position by referring to the marked price, so as to prevent investors from bursting positions due to a single transaction with abnormal price, and further reduce the possibility of illegal investors to create burst positions by maliciously hitting the market.

(6) Step to maintain the margin rate system

Maintenance margin refers to the minimum margin required to maintain a current position. When the margin rate falls below the maintenance margin rate + the closing procedure rate, a forced closing or forced partial reduction is triggered. Bibox operates a stepped-maintenance margin ratio, which means that the larger the user's position, the higher the maintenance margin ratio and the lower the maximum leverage multiple that the user can select.