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Derivative Product Description

Perpetual Contract on Bitcoin/Tether Pair (BTCF0:USTF0)

The following provides an overview of terms of the Bitcoin/Tether Perpetual Contract (BTCF0:USTF0). All terms herein have the same definitions that are set forth in the Derivative Terms of Service and the Funding Payment Summary for the Perpetual Contracts. This Product Description was last updated October 3, 2019.

The Product: BFXD offers a new type of Perpetual Contract that is a derivative contract that references the Bitcoin/Tether Reference Token Pair (BTC/USDt).

Settlement and Funding Payments: Transactions in the Perpetual Contract and Funding Payments will be settled exclusively using the stablecoin, Tether.

Margin Collateral: Permissible Margin Collateral to satisfy margin requirements is Tether.

Forced Liquidation Price: The Price at which a Perpetual Contract position will be forcibly liquidated by BFXD will be the specific Mark Price denominated by BFXD at the time a position is established or modified.

Calculation of the Mark Price: Beginning October 3, 2019 at 9:00 AM UTC, the Mark Price shall be determined on the basis of and be a specific valuation of the BFX Composite Index (BFXCI). The BFXCI is designed to be an equally weighted index of the prevailing published prices of the Reference Token Pair traded in the Bitfinex.com peer-to-peer Digital Token spot market and up to three other exchanges with published pricing information for the Reference Token Pair. BFXD will use automated processes that apply programmed parameters for determining which particular published prices should be included in the calculation of the BFXCI. In this connection, whenever BFXD, in its sole judgment based on BFXD’s analysis of information at the time of valuing the BFXCI, determines that a published price for a particular exchange either exceeds a programmed standard deviation or BXFD otherwise determines the published price to be a materially unreliable expression of the prevailing market value for the Referenced Token Pair, BXFD will adjust the calculation of the BFXCI to exclude that published price for that particular exchange. BXFD, without notice to market users and based on BFXD’s sole discretion and judgment, may change the programmed parameters for inclusion of published prices of the Referenced Token Pair in the calculation of the BFXCI. In the event that, in the sole judgment of BXFD, the published exchange prices do not support a reliable basis for setting the BFXCI and establishing the Mark Price, BXFD will set the Mark Price using solely the prevailing price of the Reference Token Pair traded in the Bitfinex.com peer-to-peer Digital Token spot market. Many pricing and market factors could contribute to treating a particular published price for a Referenced Token Pair as unreliable and therefore excluding it from the calculation of the BFXCI. Factors that may affect the inclusion of published prices include, but are not limited to, whether data is unacceptably stale or published prices vary beyond standard deviations or otherwise reflect a materially unreliable expression of the prevailing market value.

Funding Payments: The Perpetual Contract is subject to a requirement of Funding Payments. Whether a Funding Payment will be required depends on the Average Spread between (1) the prices of the Bitcoin/Tether Perpetual Contract (BTCF0:USTF0) and (2) the Mark Price (i.e., the price of the BFXCI at the time described in the Funding Payment Summary for the Perpetual Contracts). Funding Payments may require a pause in trading in the Perpetual Contract (BTCF0:USTF0) market for a period of time lasting several seconds or longer. Please review the further information on Funding Payments in the Funding Payment Summary for the Perpetual Contracts.

Product Overview

The product details are as follows:

Ticker Symbol BTCF0:USTF0
Underlying Pair Bitfinex.com BTC/USDt
Max Leverage 100x
Margin Collateral USDt
Pay-off Type Linear
Length Perpetual
Fees and Funding Payments Transaction Fees and Funding Payments
Minimum Order Size 0.01 BTCF0
Price Tick Size Dynamic and based on prices in the Perpetual Contract (BTCF0:USTF0)
Forced Liquidation Price Mark Price at which BXFD will forcibly liquidate the position
Position Liquidation Event When BXFD forcibly liquidates a Perpetual Contract (BTCF0:USTF0) position against an open market order
Position Termination Event When BXFD forcibly liquidates a Perpetual Contract (BTCF0:USTF0) position against an open market position at a price set by BFXD

Example 1:

A trader places an order to buy a Perpetual Contract (BTCF0:USTF0) equivalent to 1 BTCF0 at a price of 10,000 USTF0 with 100x leverage, and the order is fully executed at that price.

The trader must post at least 100 USTF0 of initial Margin Collateral to support the position.

10,000 * 1.00% = 100 USTF0

The Maintenance Margin requirement is 0.50%, and BXFD will establish the Forced Liquidation Price at the Mark Price.

10,000 * (1 - 0.005) = 9,950

If the market trades at or below this Forced Liquidation Price, the position would be liquidated and all Margin Collateral forfeited into the Liquidation Fund.

Example 2:

A trader places an order to buy a Perpetual Contract (BTCF0:USTF0) equivalent to 1 BTCF0 at a price of 10,000 USTF0 with 100x leverage, and the order is fully executed at that price.

The market moves higher to 10,020, at which time the trader exits the position by executing an order to sell the Perpetual Contract (BTCF0:USTF0) equivalent to 1 BTCF0 at that price.

Excluding fees, the trader has made a profit of 20 USTF0.

1 BTCF0 * (10,020 - 10,000) = 20 USTF0 profit

Example 3:

A trader places an order to buy a Perpetual Contract (BTCF0:USTF0) equivalent to 1 BTCF0 at a price of 10,000 USTF0 with 100x leverage, and the order is fully executed at that price.

The market moves lower, and the trader exits at 9,980. The trader would then have incurred a loss of 20 USTF0, excluding fees.

1 BTCF0 * (9,980 - 10,000) = -20 USTF0 = 20 USTF0 loss, excluding fees.

For a description of product fees and margin requirements, please see the Derivative Fee and Margin Schedule.

Perpetual Contract on Ether/Tether Pair (ETHF0:USTF0)

The following provides an overview of terms of the Ether/Tether Perpetual Contract (ETHF0:USTF0). All terms herein have the same definitions that are set forth in the Derivative Terms of Service and the Funding Payment Summary for the Perpetual Contracts. This Product Description was last updated October 3, 2019.

The Product: BFXD offers a new type of Perpetual Contract that is a derivative contract that references the Ether/Tether Reference Token Pair (ETH/USDt).

Settlement and Funding Payments: Transactions in the Perpetual Contract and Funding Payments will be settled exclusively using the stablecoin, Tether.

Margin Collateral: Permissible Margin Collateral to satisfy margin requirements is Tether.

Forced Liquidation Price: The Price at which a Perpetual Contract position will be forcibly liquidated by BFXD will be the specific Mark Price denominated by BFXD at the time a position is established or modified.

Calculation of the Mark Price: Beginning October 3, 2019 at 9:00 AM UTC, the Mark Price shall be determined on the basis of and be a specific valuation of the BFX Composite Index (BFXCI). The BFXCI is designed to be an equally weighted index of the prevailing published prices of the Reference Token Pair traded in the Bitfinex.com peer-to-peer Digital Token spot market and up to three other exchanges with published pricing information for the Reference Token Pair. BFXD will use automated processes that apply programmed parameters for determining which particular published prices should be included in the calculation of the BFXCI. In this connection, whenever BFXD, in its sole judgment based on BFXD’s analysis of information at the time of valuing the BFXCI, determines that a published price for a particular exchange either exceeds a programmed standard deviation or BXFD otherwise determines the published price to be a materially unreliable expression of the prevailing market value for the Referenced Token Pair, BXFD will adjust the calculation of the BFXCI to exclude that published price for that particular exchange. BXFD, without notice to market users and based on BFXD’s sole discretion and judgment, may change the programmed parameters for inclusion of published prices of the Referenced Token Pair in the calculation of the BFXCI. In the event that, in the sole judgment of BXFD, the published exchange prices do not support a reliable basis for setting the BFXCI and establishing the Mark Price, BXFD will set the Mark Price using solely the prevailing price of the Reference Token Pair traded in the Bitfinex.com peer-to-peer Digital Token spot market. Many pricing and market factors could contribute to treating a particular published price for a Referenced Token Pair as unreliable and therefore excluding it from the calculation of the BFXCI. Factors that may affect the inclusion of published prices include, but are not limited to, whether data is unacceptably stale or published prices vary beyond standard deviations or otherwise reflect a materially unreliable expression of the prevailing market value.

Funding Payments: The Perpetual Contract is subject to a requirement of Funding Payments. Whether a Funding Payment will be required depends on the Average Spread between (1) the prices of the Ethereum/Tether Perpetual Contract (ETHF0:USTF0) and (2) the Mark Price (i.e., the price of the BFXCI at the time described in the Funding Payment Summary for the Perpetual Contracts). Funding Payments may require a pause in trading in the Perpetual Contract (ETHF0:USTF0) market for a period of time lasting several seconds or longer. Please review the further information on Funding Payments in the Funding Payment Summary for the Perpetual Contracts.

Product Overview

The product details are as follows:

Ticker Symbol ETHF0:USTF0
Underlying Pair Bitfinex.com ETH/USDt
Max Leverage 100x
Margin Collateral USDt
Pay-off Type Linear
Length Perpetual
Fees and Funding Payments Transaction Fees and Funding Payments
Minimum Order Size 0.01 ETHF0
Price Tick Size Dynamic and based on prices in the Perpetual Contract (ETHF0:USTF0)
Forced Liquidation Price Mark Price at which BXFD will forcibly liquidate the position
Position Liquidation Event When BXFD forcibly liquidates a Perpetual Contract (BTCF0:USTF0) position against an open market order
Position Termination Event When BXFD forcibly liquidates a Perpetual Contract (BTCF0:USTF0) position against an open market position at a price set by BFXD

Example 1:

A trader places an order to buy a Perpetual Contract (ETHF0:USTF0) equivalent to 1 ETHF0 at a price of 10,000 USTF0 with 100x leverage, and the order is fully executed at that price.

The trader must post at least 100 USTF0 of initial Margin Collateral to support the position.

10,000 * 1.00% = 100 USTF0

The Maintenance Margin requirement is 0.50%, and BXFD will establish the Forced Liquidation Price at the Mark Price.

10,000 * (1 - 0.005) = 9,950

If the market trades at or below this Forced Liquidation Price, the position would be liquidated and all Margin Collateral forfeited into the Liquidation Fund.

Example 2:

A trader places an order to buy a Perpetual Contract (ETHF0:USTF0) equivalent to 1 ETHF0 at a price of 10,000 USTF0 with 100x leverage, and the order is fully executed at that price.

The market moves higher to 10,020, at which time the trader exits the position by executing an order to sell the Perpetual Contract (ETHF0:USTF0) equivalent to 1 ETHF0 at that price.

Excluding fees, the trader has made a profit of 20 USTF0.

1 ETHF0 * (10,020 - 10,000) = 20 USTF0 profit

Example 3:

A trader places an order to buy a Perpetual Contract (ETHF0:USTF0) equivalent to 1 ETHF0 at a price of 10,000 USTF0 with 100x leverage, and the order is fully executed at that price.

The market moves lower, and the trader exits at 9,980. The trader would then have incurred a loss of 20 USTF0, excluding fees.

1 ETHF0 * (9,980 - 10,000) = -20 USTF0 = 20 USTF0 loss, excluding fees.

For a description of product fees and margin requirements, please see the Derivative Fee and Margin Schedule.

Perpetual Contract on Tether Gold/Tether Pair (XAUTF0:USTF0)

The following provides an overview of terms of the Tether Gold/Tether Pair Perpetual Contract (XAUTF0:USTF0). All terms herein have the same definitions that are set forth in the Derivative Terms of Service and the Funding Payment Summary for the Perpetual Contracts. This Product Description was last updated January 10, 2020.

The Product: BFXD offers a new type of Perpetual Contract that is a derivative contract that references the Tether Gold/Tether Reference Token Pair (XAUt/USDt).

Settlement and Funding Payments: Transactions in the Perpetual Contract and Funding Payments will be settled exclusively using the stablecoin, Tether.

Margin Collateral: Permissible Margin Collateral to satisfy margin requirements is Tether.

Forced Liquidation Price: The Price at which a Perpetual Contract position will be forcibly liquidated by BFXD will be the specific Mark Price denominated by BFXD at the time a position is established or modified.

Calculation of the Mark Price: Beginning January 10, 2020 at 9:00 AM UTC, the Mark Price will be determined on the basis of and be a specific valuation of the Tether Gold-Tether BFX Composite Index (TGT-BFXCI). During the business week beginning Sunday at 23:00 UTC through Friday at 21:45 UTC, the TGT-BFXCI is designed to be an equally weighted index of the prevailing published price of the Reference Token Pair traded in the Bitfinex.com peer-to-peer Digital Token spot market and the published prices for spot gold from up to three spot markets for gold. From Friday at 21:45 UTC until Sunday at 23:00 UTC, the TGT-BFXCI will be an equally weighted index of the prevailing price of the Reference Token Pair traded in the Bitfinex.com peer-to-peer Digital Token spot market and the last published prices as of Friday at 21:45 UTC for spot gold from between one and three markets for spot gold.

BFXD will use automated processes that apply programmed parameters for determining which particular published prices should be included in the calculation of the TGT-BFXCI. In this connection, whenever BFXD, in its sole judgment, based on BFXD’s analysis of information at the time of valuing the TGT-BFXCI, determines that a published Tether Gold/Tether market price or a price for spot gold either exceeds a programmed standard deviation or BXFD otherwise determines the published price to be a materially unreliable expression of the prevailing market value for the Referenced Token Pair or for spot gold, BXFD will adjust the calculation of the TGT-BFXCI to exclude the unreliable published price from the calculation of the TGT-BFXCI. BXFD, without notice to market users and based on BFXD’s sole discretion and judgment, may change the programmed parameters for inclusion of published prices of the Referenced Token Pair and spot gold in the calculation of the TGT-BFXCI. In the event that, in the sole judgment of BXFD, the published prices do not support a reliable basis for setting the TGT-BFXCI and establishing the Mark Price, BXFD will set the Mark Price using solely the prevailing price of the Reference Token Pair traded in the Bitfinex.com peer-to-peer Digital Token spot market. Many pricing and market factors could contribute to treating a particular published price for a Referenced Token Pair as unreliable and therefore excluding it from the calculation of the TGT-BFXCI. Factors that may affect the inclusion of published prices include, but are not limited to, whether data is unacceptably stale or published prices vary beyond standard deviations or otherwise reflect a materially unreliable expression of the prevailing market value.

Funding Payments: The Perpetual Contract is subject to a requirement of Funding Payments. Whether a Funding Payment will be required depends on the Average Spread between (1) the prices of the Tether Gold/Tether Perpetual Contract (XAUTF0:USTF0) and (2) the Mark Price (i.e., the price of the TGT-BFXCI at the time specified in the Funding Payment Summary for the Perpetual Contracts). Funding Payments may require a pause in trading in the Perpetual Contract (XAUTF0:USTF0) market for a period of time lasting several seconds or longer. Please review the further information on Funding Payments in the Funding Payment Summary for the Perpetual Contracts.

Product Overview

The product details are as follows:

Ticker Symbol XAUTF0:USTF0
Underlying Pair Bitfinex.com XAUt/USDt, XAU/USD (Gold troy oz.)
Max Leverage 100x
Margin Collateral USDt
Pay-off Type Linear
Length Perpetual
Fees and Funding Payments Transaction Fees and Funding Payments
Minimum Order Size 0.01 XAUt
Price Tick Size Dynamic and based on prices in the Perpetual Contract (XAUTF0:USTF0)
Forced Liquidation Price Mark Price at which BXFD will forcibly liquidate the position
Position Liquidation Event When BXFD forcibly liquidates a Perpetual Contract (XAUTF0:USTF0) position against an open market order
Position Termination Event When BXFD forcibly liquidates a Perpetual Contract (XAUTF0:USTF0) position against an open market position at a price set by BFXD

Example 1:

A trader places an order to buy a Perpetual Contract (XAUTF0:USTF0) equivalent to 1 XAUt at a price of 1,500 USTF0 with 100x leverage, and the order is fully executed at that price.

The trader must post at least 15 USTF0 of Initial Margin Collateral to support the position.

1,500 * 1.00% = 15 USTF0

The Maintenance Margin requirement is 0.50%, and BXFD will establish the Forced Liquidation Price at the Mark Price.

1,500 * (1 - 0.005) = 1,492.5

If the market trades at or below this Forced Liquidation Price, the position would be liquidated and all Margin Collateral forfeited into the Liquidation Fund.

Example 2:

A trader places an order to buy a Perpetual Contract (XAUTF0:USTF0) equivalent to 1 XAUt at a price of 1,500 USTF0 with 100x leverage, and the order is fully executed at that price.

The market moves higher to 1,520, at which time the trader exits the position by executing an order to sell the Perpetual Contract (XAUTF0:USTF0) equivalent to 1 XAUt at that price.

Excluding fees, the trader has made a profit of 20 USTF0.

1 XAUt * (1,520 - 1,500) = 20 USTF0 profit

Example 3:

A trader places an order to buy a Perpetual Contract (XAUTF0:USTF0) equivalent to 1 XAUt at a price of 1,500 USTF0 with 100x leverage, and the order is fully executed at that price.

The market moves lower, and the trader exits at 1,495. The trader would then have incurred a loss of 5 USTF0, excluding fees.

1 XAUt * (1,495 - 1,500) = -5 USTF0 = 5 USTF0 loss, excluding fees.

For a description of product fees and margin requirements, please see the Derivative Fee and Margin Schedule.

Perpetual Contract on Bitcoin Dominance Index

The following provides an overview of terms of the Bitcoin Dominance Index Perpetual Contract (BTCDOMF0:USTF0). All terms herein have the same definitions that are set forth in the Derivative Terms of Service and the Funding Payment Summary for the Perpetual Contracts. This Product Description was last updated May 5, 2020.

The Product: BFXD offers a new Bitcoin Dominance Index (BD-BFXCI) Perpetual Contract that is a derivative contract, which is priced on an overall index comprised of the price indices of the following Digital Token Pairs: Ether/Bitcoin, EOS/Bitcoin, Litecoin/Bitcoin, Ripple/Bitcoin, Bitcoin Cash/Bitcoin, Tezos/Bitcoin and Stellar/Bitcoin (respectively, “Constituent Index”). For each underlying Digital Token Pair, a Constituent Index is designed to be an equally weighted index of the prevailing published prices of the underlying Digital Token Pair traded in the Bitfinex.com peer-to-peer Digital Token spot market and up to three other exchanges with published pricing information for the Digital Token Pair. For each underlying Digital Token Pair, BFXD will use automated processes that apply programmed parameters for determining which particular published prices should be included in the calculation of the BFXCI.

In connection with the calculation of each Constituent Index, whenever BFXD, in its sole judgment based on BFXD’s analysis of information at the time of valuing a Constituent Index, determines that a published price for a particular exchange either exceeds a programmed standard deviation or BXFD otherwise determines the published price to be a materially unreliable expression of the prevailing market value for a particular Digital Token Pair, BXFD will adjust the calculation of the Constituent Index to exclude that published price for that particular exchange. BXFD, without notice to market users and based on BFXD’s sole discretion and judgment, may change the programmed parameters for inclusion of published prices of Digital Token Pairs in the calculation of a Constituent Index. In the event that, in the sole judgment of BXFD, the published exchange prices do not support a reliable basis for setting a Constituent Index and establishing the Mark Price for a particular Digital Token Pair, BXFD will set the Mark Price for that Digital Token Pair using solely the prevailing price of the Digital Token Pair traded in the Bitfinex.com peer-to-peer Digital Token spot market. Many pricing and market factors could contribute to treating a particular published price for a Digital Token Pair as unreliable and therefore excluding it from the calculation of a Constituent Index. Factors that may affect the inclusion of published prices include, but are not limited to, whether data is unacceptably stale or published prices vary beyond standard deviations or otherwise reflect a materially unreliable expression of the prevailing market value.

Settlement and Funding Payments: Transactions in the Perpetual Contract and Funding Payments will be settled exclusively using the stablecoin, Tether.

Margin Collateral: Permissible Margin Collateral to satisfy margin requirements is Tether.

Forced Liquidation Price: The Price at which a Perpetual Contract position will be forcibly liquidated by BFXD will be the specific Index Fair Value denominated by BFXD at the time a position is established or modified.

Calculation of the Index Mark Price: Beginning May 5, 2020 at 9:00 AM UTC, the Index Mark Price of the Bitcoin Dominance Index Product, which is used to determine funding payments and liquidation prices, shall be determined on the basis of and be a specific valuation of the Bitcoin Dominance Index (BD-BFXCI), which equally weights the Mark Prices of each of underlying Digital Token Pairs as inputs.

Funding Payments: The Perpetual Contract is subject to a requirement of Funding Payments. Whether a Funding Payment will be required depends on the Average Spread between (1) the mid-point price between the then current highest bid and the lowest offer in the BFXD trading book and (2) the Index Fair Value. Funding Payments may require a pause in trading in the Bitcoin Dominance Index Product (BTCDOMF0:USTF0) market for a period of time lasting several seconds or longer. Please review the further information on Funding Payments in the Funding Payment Summary for the Perpetual Contracts.

Product Overview

The product details are as follows:

Ticker Symbol BTCDOMF0:USTF0
Underlying Pairs ETH/BTC
EOS/BTC
LTC/BTC
XRP/BTC
BCH/BTC
XTZ/BTC
XLM/BTC
Max Leverage 100x
Margin Collateral USDt
Pay-off Type Linear
Length Perpetual
Fees and Funding Payments Transaction Fees and Funding Payments
Minimum Order Size 0.01 BTCDOMF0
Price Tick Size Dynamic and based on prices in the Perpetual Contract (BTCDOMF0:USTF0)
Forced Liquidation Price The Index Fair Value at which BXFD will forcibly liquidate the position
Position Liquidation Event When BXFD forcibly liquidates a Perpetual Contract (BTCDOMF0:USTF0) position against an open market order
Position Termination Event When BXFD forcibly liquidates a Perpetual Contract (BTCDOMF0:USTF0) position against an open market position at a price set by BFXD

Example 1:

A trader places an order to buy a Perpetual Contract (BTCDOMF0:USTF0) equivalent to 1 BTCDOMF0 at a price of 10,000 USTF0 with 100x leverage, and the order is fully executed at that price.

The trader must post at least 100 USTF0 of Initial Margin Collateral to support the position.

10,000 * 1.00% = 100 USTF0

The Maintenance Margin requirement is 0.50%, and BXFD will establish the Forced Liquidation Price at the Index Mark Price.

10,000 * (1 - 0.005) = 9,950

If the Index Mark Price trades at or below this Forced Liquidation Price, the position would be liquidated, and all Margin Collateral forfeited into the Liquidation Fund.

Example 2:

A trader places an order to buy a Perpetual Contract (BTCDOMF0:USTF0) equivalent to 1 BTCDOMF0 at a price of 10,000 USTF0 with 100x leverage, and the order is fully executed at that price.

The market moves higher to 10,020, at which time the trader exits the position by executing an order to sell the Perpetual Contract (BTCDOMF0:USTF0) equivalent to 1 BTCDOMF0 at that price.

Excluding fees, the trader has made a profit of 20 USTF0.

1 BTCDOMF0 * (10,020 - 10,000) = 20 USTF0 profit

Example 3:

A trader places an order to buy a Perpetual Contract (BTCDOMF0:USTF0) equivalent to 1 BTCDOMF0 at a price of 10,000 USTF0 with 100x leverage, and the order is fully executed at that price.

The market moves lower, and the trader exits at 9,980. The trader would then have incurred a loss of 20 USTF0, excluding fees.

1 BTCDOMF0 * (9,980 - 10,000) = -20 USTF0 = 20 USTF0 loss, excluding fees.

For a description of product fees and margin requirements, please see the Derivative Fee and Margin Schedule.