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 Perpetual Contract Funding Summary.

BFXD offers a new type of Perpetual Contract that is a derivative contract based on the price of the Bitcoin/Tether (BTCF0:USTF0) pair traded in the Bitfinex.com peer-to-peer Digital Token spot market (BTC/USDt). This is the first Perpetual Contract that employs a linear settlement with Margin Collateral posted in the industry leading stablecoin Tether. The product is subject to a requirement of Funding Payments that might inhibit the expansion of the spread between the Bitfinex.com spot market (BTC/USDt) and the Perpetual Contract market (BTCF0:USTF0). 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) prices of the corresponding Reference Token Pair traded in the Bitfinex.com peer-to-peer Digital Token trading market (BTC/USDt). Funding Payments 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 Perpetual Contract Funding Summary.

The product details are as follows:

Ticker Symbol

BTCF0:USTF0

Underlying Pair

Bitfinex.com BTC/USDt

Max Leverage

100x

Margin Collateral

USTF0

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

Perpetual Contract (BTCF0:USTF0) 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 9,950.

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 Perpetual Contract Funding Summary.

BFXD offers a Perpetual Contract that is a derivative contract based on the price of the Ether/Tether (ETHF0:USTF0) pair traded in the Bitfinex.com peer-to-peer Digital Token spot market (ETH/USDt). The product is subject to a requirement of Funding Payments that might inhibit the expansion of the spread between the Bitfinex.com spot market (ETH/USDt) and the Perpetual Contract market (ETHF0:USTF0). Whether a Funding Payment will be required depends on the Average Spread between (1) the prices of the Ether/Tether Perpetual Contract (ETHF0:USTF0) and (2) prices of the corresponding Reference Token Pair traded in the Bitfinex.com peer-to-peer Digital Token trading market (ETH/USDt). Funding Payments 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 Perpetual Contract Funding Summary.

The product details are as follows:

Ticker Symbol

ETHF0:USTF0

Underlying Pair

Bitfinex.com ETH/USDt

Max Leverage

100x

Margin Collateral

USTF0

Type

Linear

Length

Perpetual

Fees

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

Perpetual Contract (ETHF0:USTF0) price at which BXFD will forcibly liquidate the position

Position Liquidation Event

When BXFD forcibly liquidates a Perpetual Contract (ETHF0:USTF0) position against an open market order

Position Termination Event

When BXFD forcibly liquidates a Perpetual Contract (ETHF0: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 9,950.

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.