CryptoFacilities has just launched their new TURBO futures product on BTC/USD and for a limited time you can trade with NO fees! The index reference for the product is based on the top volume spot exchanges in BTC/USD (currently Bitfinex, Bitstamp, Coinbase, BTC-e, itBit, Gemini). However, the futures contract uses only bitcoin, no fiat at all.
They have offered hedging futures contracts with no socialized losses for over a year. Now, there's two new “Turbo” contracts you can trade: weekly and biweekly. The weekly contract expires every Friday (and new biweekly gets issued), with daily blockchain settlement of P&L, and you can trade it with up to 50x leverage!
Each contract at CryptoFacilities is worth 1 Bitcoin. If you are bullish and think the price will rise, and want to buy 1 contract, it will require 0.02138864 BTC of initial margin. If you are bearish and think the price will fall, 1 contract will require 0.01960784 BTC of initial margin.
As you can see, there's plenty of action in the orderbook and volume is increasing, so it's ready to trade whether you have a simple 1 contract or even 50 contracts you would like to move:
They have offered hedging futures contracts with no socialized losses for over a year. Now, there's two new “Turbo” contracts you can trade: weekly and biweekly. The weekly contract expires every Friday (and new biweekly gets issued), with daily blockchain settlement of P&L, and you can trade it with up to 50x leverage!
Each contract at CryptoFacilities is worth 1 Bitcoin. If you are bullish and think the price will rise, and want to buy 1 contract, it will require 0.02138864 BTC of initial margin. If you are bearish and think the price will fall, 1 contract will require 0.01960784 BTC of initial margin.
As you can see, there's plenty of action in the orderbook and volume is increasing, so it's ready to trade whether you have a simple 1 contract or even 50 contracts you would like to move:
These new Turbo products from CryptoFacilities are letting you use 1.96-2.13% initial margin, essentially to go 50x leverage, in your trades now. The best part is that there are no socialised losses at all. This means you don't have to wait around for your profit to clear every week, it is available every day on settlement.
The way system losses are handled on CryptoFacilities are standard liquidations. You will be partially liquidated your position until the 2% margin requirement is reached again. If liquidations are not filled, even at the price which maximizes out the whole margin, then termination occurs. This procedure is where the full margin from the losing side of the contract transfers to the customer on the winning side of the contract. Since every futures contract has a counterparty taking a long or short position, the system is made whole by termination if liquidation fails.
The amounts (per contract) that trigger liquidation and termination are shown below:
Your funds on the site can be split between 1) Cash, 2) Normal Futures (6x leverage), and 3) Turbo Futures (50x leverage). This way you can safely segregate your funds and be sure that high leverage trading won't affect your portfolio in hedging or liquid bitcoin cash account.
CEO Timo Schlaefer has stated that termination procedure has never happened yet in their site's lifetime. While it is a risk that may occur, especially now with 50x, it is a sufficient way to avoid annoying socialised losses while still allowing clients to trade with significant leverage. The downside is that if you are in a winning position that your counterparty is terminated on, you are then “kicked out” of your open position with a profit. Note: if you blow out positions in your Turbo account, it has no affect on your Futures account or Cash account, they remain separate.
GET $10 ON YOUR FIRST TRADE USING THIS LINK TO SIGN UP AT CRYPTOFACILITIES
Tl;dr:
CryptoFacilities has a complete product offering now: Turbo is perfect for speculators who need high leverage action (up to 50x), while their Normal Futures contracts have 6x and allow you to safely make hedging trades there.
Upsides:
- Trade with 50x leverage, that's more than double what the top volume exchange in the world OKCoin offers.
- No socialized losses at all.
- No waiting for any settlement to withdraw your profits!
- When you get liquidated, you don't lose your margin like on OKCoin and BitMEX, you get to keep whatever is left after the exchange has executed the liquidation. It also only partially liquidates your position as needed to reach the 2% threshold. No insurance fund is needed and CryptoFacilities only makes money from trading fees, nothing else.
- CryptoFacilities is FCA regulated and based in London, so they have standards, transparency, and accountability that other exchanges don't.
Downsides:
- Termination can kick you out of a profitable position, but you will be compensated for it with your counterparty's portfolio value.
- Maintenance margin works differently than you may be used to on OKCoin/BitMEX: you have to keep your balance above 1.75% margin to avoid partial liquidation within 24H.
- Liquidation is triggered while you still have 1.5% margin available
- You must provide KYC/AML personal documentation to deposit and trade.
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