Just a few days ago in ETHPoW vs ETH2, the BitMEX Research team explored the possibility of a chain split in Ethereum that could result in a new ETH Proof of Work (PoW) coin. The latest Crypto Trader Digest also delved into what this could mean for the ETH price going forward.
Fast forward a few days, and there’s about to be a new way for users to trade – in respect of ETHPoW with ETHPOWZ22 scheduled to go live tomorrow.
This will mean that when our Tether- (USDT ERC-20) margined contract goes live, users will be able to get trading exposure to ETHPOW – with up to 2x leverage.
Right now, ETHPOWZ22 is ready for our users to explore on Testnet.
To know more about our new ETHPOW contract, read on.
ETHPoW Linear Futures Contract Specs
ETHPOWZ22 is a linear futures contract, margined in USDT (ERC-20). It works similarly to a regular futures contract, but with some key differences which you’ll find detailed below:
ETHPOW contract details:
- Symbol: ETHPOWZ22
- Expiry Date: 30 December 2022
- Margin currency: USDT
- Contract Size: 0.00001 ETHPOW
- Lot Size: 1000
- Minimum Trade Amount: 0.01 ETHPOW
- Underlying: .BETHPOW
- Max Leverage: 2x
- Maker Fee: 0.00%
- Taker Fee: 0.25%
- Base Initial Margin: 50.00%
- Base Maintenance Margin: 25.00%
Key differences from our other futures contracts:
- Mark Method – Last Price
- Price Limits – Limit Up and Limit Down set hourly at Mark Price +/- 20%
- Settlement Price – .BETHPOW30M
- Auto Deleveraging – Enabled
- Maker Fee: 0.00%
- Taker Fee: 0.25%
This is a highly speculative contract (ETHPOW doesn’t exist yet and might never exist). Because of this, we’ve changed a few items.
We are using Last Price marking because there is not yet an observable price for ETHPOW. To protect the market against manipulation, we will use Limit Up and Limit Down prices which are set each hour, on the hour, at Mark Price +/- 20%. Traders will not be able to place bids above the Limit Up Price or place offers below the Limit Down Price.
The .BETHPOW index will be constructed by BitMEX when it is possible to produce a robust index that represents the spot price of the ETH Proof of Work Coin. Once such an index exists, BitMEX may change the Mark Method to Fair Price. Until such an Index is created, the value of .BETHPOW will be set to 0. If there is no index constructed by the expiry date, the Settlement Value will be 0.
As with all crypto derivatives contracts traded on BitMEX, there is a possibility that auto-deleveraging will occur. Since this contract is purely speculative (particularly whilst ETHPOW ceases to exist yet), the possibility of auto-deleveraging is higher than on a regular contract.
We have also altered the fees for this contract to 0 maker rebate and 25 basis points taker fee. We will change these fees once it looks more like a ‘regular’ futures contract. BMEX taker discounts will still apply.
The ETHPOWZ22 futures contract is now live on Testnet, along with the full contract specs.
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In the meantime, if you have any questions please contact Support.
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