Cryptocurrency trading platform BitMEX announced on Monday its plans to launch BCHUSD quanto perpetual swap contract. This will be the fourth quanto contract to be launched on the crypto platform and will offer up to 25x leverage and will launch on June 16th. The contract follows the successful introduction of the ETHUSD quanto futures contract on May 5th and the XRPUSD swap contract on February 5th. While sharing more details about the contract, BitMEX stated:
“BCHUSD quanto swaps have a fixed Bitcoin multiplier regardless of the USD Bitcoin Cash price. This allows traders to long or short the BCH/USD exchange rate without ever touching either BCH or USD. Traders post margin in XBT, and earn or lose Bitcoin as the BCH/USD rate changes. This quanto property may be one of the factors which results in the BCHUSD swap trading at a premium / discount to the BCHUSD spot price.”
Key contract details:
- Symbol: BCHUSD
- Bitcoin Multiplier: 0.000001 XBT (100 Satoshis)
- XBT Contract Value: BCHUSD Price * Bitcoin Multiplier (100 Sat/$1)
- Underlying: .BBCH
- Max Leverage: 25x
- Maker Fee: -0.025%
- Taker Fee: 0.075%
- Base Initial Margin: 4.00%
- Base Maintenance Margin: 2.00%
Meanwhile, BitMEX experienced a legal issue last month. As previously reported, a lawsuit was filed on May 16, 2020, against HDR Global Trading Ltd, the parenting company of BitMEX. A lawsuit has also been filed against ABS Global Trading and its co-founders Arthur Hayes, Ben Delo, and Samuel Reed. The defendants have been accused of engaging in illegal activities which include money laundering. The suit alleges:
“According to Defendants’ own data, Defendants’ unlicensed money transmitting business admittedly processed, on average, $3 billion of illegal and unlicensed money transfers each day, all in violation of United States federal statute…, which is the record volume for such unlawful activity in the entire history of the monetary regulation in the United States.”
The plaintiff stated at the time:
“The San Francisco office of Defendant HDR is the largest of all three by both the employee headcount and technical staff headcount.”
Founded in 2014, BitMEX is a next-generation cryptocurrency trading platform that supports leveraged trading through Perpetual and Futures Contracts. The exchange offers a fast, safe, and liquid way to trade and hedge cryptocurrency risk.