Bitmex transaction rules

Bitmex platform has a good reputation, mainly engaged in futures leveraged transactions, futures and perpetual contracts with due delivery. A perpetual contract is a non-expiring futures.

Perpetual contract capital rate:

Series	Lever	Offer Liquidity Rate	Extract Liquidity Rate	Multi-warehouse fund rate	Empty warehouse fund rate	Fund rate period
Ethereum (ETH)	50x	-0.0250%	0.0750%	0.0100%	-0.0100%	Every 8 hours
Bitcoin (xbt)	100x	-0.0250%	0.0750%	0.0100%	-0.0100%	Every 8 hours

 

 

 

Taking Bitcoin as an example, a maximum of 100 times can be leveraged, and a minimum can be doubled.

However, in fact, you can append a deposit after the Warehouse is opened. After the deposit is added, the lever can be reduced to less than doubled. :

By increasing the deposit, the leverage ratio can be reduced to less than one time, and the leverage ratio after the deposit is increased to 0.28 times. In fact, the risk of futures is caused by the use of high leverage, self-control of positions, and the risk of controlling leverage is not high. For example, if you use 100000 RMB to buy stocks or 10000 RMB to buy futures, the remaining 90000 RMB is used as a deposit, and the effect is the same. Manual leverage reduction can reduce risks. In the bitcoin field, there is often a lot of money to rush to press the price, resulting in short positions and multiple positions burst, so high leverage is not recommended.

The liquidity rate-0.0250% indicates that, after a ticket is submitted, you can get 0.0250% BTC of the position as the income. A negative number indicates that you take the money, and a positive number indicates that you pay. Because liquidity is provided, You can take money if you make a deal. For those who eat the ticket, they need to pay a liquidity extraction rate of 0.0750%. That is, the transaction service fee of the person who eats the ticket is 0.0750%. The multi-warehouse fund rate and the empty warehouse fund rate are charged once every 8 hours. If the rate is positive, multiple warehouses will be paid, while empty warehouses will receive the Fund rate. If the rate is negative, the opposite is true. Only those who have positions at a time point will be charged or get the fund rate.Capital Timestamp: UTC (Beijing Time), UTC (Beijing time), and UTC (Beijing time ).

Why is the fund rate charged for this multi-empty warehouse?Because this is a perpetual contract that never expires, In order to pin the spot price to the futures contract price, when the futures contract price is higher than the spot price, the multiple head will give the short part of the money, in this way, multiple positions will be closed, reducing the price. When the price of a futures contract is lower than the spot price, the short seller will pay a portion of the money to the long seller, so that the short seller will close the position and raise the price. In this way, the Fund rate ensures that the contract price is as similar as the spot price as possible. If the spot price is deviated, the Fund rate can be used to restore it to the spot price.

How is the fund rate calculated?

The Fund rate consists of two parts:Interest RateAndPremium/discount. This rate is designed to ensure that the transaction price of the perpetual swaps contract follows the benchmark reference price.

Interest Rate

Interest rate (I) = (denominated interest rate index-base interest rate index) /Fund rate interval: base interest rate index = base currency lending interest rate valuation Interest Rate Index = base currency lending interest rate interval = 3 (because funds are generated every 8 hours)

For example, in the xbtusd contract, the basic currency is xbt (bitcoin), the denominated currency is USD, and the interest rate index is the lending rate. Why is interest rate calculated? Assume that the exchange rates of xbt and USD are not subject to any external interference. Due to interest rates, one currency will depreciate or appreciate the exchange rates of another currency. This is due to the existence of the one-price law. Assume that 1 xbt is USD 10000, the US dollar lending rate is 0.06%, And the bitcoin lending rate is 0.03%. So when we were 24 hours old, we should have 1.0003 xbt against 10006 US dollars. We found that the US dollar has depreciated against xbt, And we need 10003 US dollars to redeem an xbt. This is very unfavorable for the xbtusd shorts, that is to say, this is definitely a loss, so in order to compensate the loss side, you need to use the interest rate (I) to compensate.

Discount/Premium

Sometimes, the price of a perpetual swaps contract is significantly higher or lower than the marked price. In order to make the price of the perpetual contract back to the current price, you need to pay a part of the transfer fee at the discount. For example, if the price of a perpetual contract is higher than the spot price, you need to pay a premium contract to the short position as compensation. Due to the benefits, the price can be returned to the spot price. And vice versa.

Premium index (P) = (max (0, deep weighted Buy Price-marked price)-max (0, marked price-deep weighted sell price)/spot price + reasonable base difference of marked price

Deep weighted purchase price refers to the average price of the "amount affected by the deposit" of the deal made by the bidder. Deep weighted selling price refers to the average price of the bidder's deposit impact. That is, the number of positions. For example, if the deposit is 0.1xbt and the leverage is 100 times, the amount affected by the deposit is 10 x BT, and then the weighted purchase price and sale price after the deal are calculated. A bidding commission is a buyer's Commission for a trader at a specified price and quantity. The auction delegate is the seller's sales delegate at the specified price and quantity. Then, the deep weighted purchase price is the price weighting of the deal at the buyer's price, and the deep weighted purchase price is the price weighting of the deal at the seller's price.

The markup price is anchored by two large stock exchanges and currently consists of bitstamp and gdax with the same weight. Take 50% of the price for each item. After the spot market is anchored, it will not be maliciously manipulated by large funds, resulting in a burst of warehouses. Because the settlement price of the burst warehouse is determined by the two stock exchanges, Bitmex will burst the Warehouse only when the capital is forcibly raised or pressed on the three stock exchanges. However, the cost will be very high. Therefore, the malicious warehouse explosion is largely restricted.

Therefore, if the marked price is higher than the deep weighted selling price, it means that Bitmex is too low now, the short post will be given to a portion of the funds, which are transferred between many short posts, and the exchange will not be charged. If the marked price is lower than the deep weighted purchase price, the Bitmex price is too high now, and the Bulls need to pay a portion of the funds for the bears. The total formula for the last fund rate:

Fund rate (f) = premium index (P) + clamp (I)-premium index (P), 0.05%,-0.05%)

This makes the transaction more fair.

Settlement of futures upon expiration

Bitmex not only has a perpetual contract, but also has an expiration settlement contract. The settlement is based on. xbt30m upon expiration.

The Bitmex. xbt30m index is a 30-minute weighted bitcoin price. The exchange is composed of three major spot exchanges: bitstamp, coinbase pro, and Kraken. Spot prices on major exchanges account for 33.33% of the total price. Prevents price control.

So how can we calculate Profit and Loss?

Profit and Loss = contract quantity * multiplier * (1/opening price-1/closing price)

The multiplier is set to 1. This profit and loss calculation seems non-linear, but it is actually linear, only because the settlement based on Bitcoin is non-linear. For example, if you open a warehouse with 1000 hands, the warehouse price is USD 5000, and the closed price is USD 6000, the profit and loss of the calculation is 0.0333. But in fact, the conversion to USD is because I bought 1000/5000 = 0.2 Bitcoin at the beginning, and the price of one Bitcoin rose by 1000 US dollars, so 0.2 bitcoin earned 200 US dollars, the current price of Bitcoin is 200/6000 = 0.0333.

Bullish bearish option contract

Bitmex also has a bullish put option contract, but it can only buy a bullish or put option, and cannot sell a bullish put option. Only institutions can sell bullish and put options. In addition, the circulation of options is very poor. There is a large difference between the selling price and the buying price. However, option hedging is a good choice.

Automatic Warehouse reduction

Bitmex has an automatic warehouse reduction system. When investors are forced to close their positions, their remaining positions will be taken over by Bitmex's strong level system. If a strong-flat position cannot be closed in the market, and when the price reaches the bankruptcy price, the automatic warehouse deduction system will lighten up investors holding reverse positions. The sequence of warehouse reduction is determined by the leverage and profit ratio. The Automatic Warehouse deduction will be performed based on the bankruptcy price of the strong-flat position. Automatic Warehouse reduction starts with the most profitable investors to maintain the stability of the trading platform. This reduces the number of people who suffer losses and allows investors who are too profitable to make a part of the profits.

Forced liquidation

When the transaction deposit is less than the Maintenance Guarantee Fund, the forced liquidation is made. The xbtusd is 0.5%. The remaining funds for forced liquidation will enter the insurance fund to compensate investors who fail to force the liquidation.

Delegate type

Commission is divided into market price commission, price limit Commission, profit stop Commission and stop commission. There is also a stop-loss tracking delegate. For example:

Quantity = 10 Contract Price traces = 5 trigger type = marked price direction = buy (because the tracking price distance is positive)
Once the user submits this type of commission, the market price commission for 10 contracts will be marked at the priceRisingSubmitted when the tracking price exceeds 5. However, if the tag price falls, the Commission will track the price and be executed when the tag price increases to the lowest point more than 5.

Bitmex also provides advanced delegation functions. For example, hidden delegation, iceberg delegation, and passive delegation.

Hide DelegationIt is a price limit delegate, but it is not visible in the delegate list.

Iceberg DelegationThe iceberg delegate is a hidden delegate, and part of it is displayed on the Public Delegate list. Because smart traders can find hidden delegates, some traders prefer to use this type to make hidden delegates look more like traders are constantly increasing the number of delegates. For example, a 10-piece purchase commission with a minimum price of 100 will be submitted to the market. Only one contract can be seen by other traders. If someone sells three contracts at 100, the three contracts are closed immediately. Then, another contract will be seen by other traders at a price of 100. Therefore, seven contracts have not been closed for this Commission, one of which is visible.

Quantity = 10 contract price limit = 100 hide check box = displayed quantity = 1 contract direction = buy

A commission with a minimum price of 100 for 10 contracts will be submitted to the market. Only one contract can be seen by other traders. If someone sells three contracts at 100, the three contracts are closed immediately. Then, another contract will be seen by other traders at a price of 100. Therefore, seven contracts have not been closed for this Commission, one of which is visible.

Passive Delegation

A passive delegate is a price-limit delegate that is accepted only when they are not immediately traded. That is to say, passive delegation will never extract mobility. Market makers use passive commission to ensure that market makers can earn rebates. For example:

Quantity = 10 contract price limit = 102 passive delegation check box = selected direction = buy best selling price = 101

In this example, if the passive commission check box is not selected, the commission may be charged to extract the liquidity Commission when the offer price is 101. If the passive delegate check box is selected, the Delegate willNoExecuted and canceled. This Commission will be submitted to the market only when the best selling price is higher than 102.

Bitmex transaction rules