Announcements

Announcements > Update to Price Mechanism for Derivatives Trading October 02, 2019

We're pleased to announce an important change to how the liquidation levels and funding payments are calculated on the derivatives products available on Bitfinex. An update to the price mechanism will apply to BTCF0/USDt0 and ETHF0/USDt0.

From 03/10/19 at 9:00 am UTC, we will use mark price to dictate the funding payments and liquidation levels of derivatives products, which will replace the actual futures price.

The mark price of derivatives will be based upon the BFX Composite Index (BFXCI), an index of prices obtained from several leading cryptocurrency exchanges in the BTC/USDt and ETH/USDt markets, respectively. The migration to mark price has undergone extensive backtesting from our risk management team.

We believe the use of mark price will significantly reduce the possibility of price manipulation on the derivatives products available on Bitfinex. This update will ensure that our clients have optimum transparency in a secure and fair trading environment.