Place/Date: - June 10th, 2019 at 5:20 pm UTC · 6 min read
Contact: BitMax.io, Source: BitMax.io
BitMax.io (BTMX.com), the industry leading digital asset trading platform founded by a group of Wall Street quantitative trading veterans, always strives to provide its global users with a comprehensive set of trading products.
After introducing the industry first “Transaction Mining & Reverse-Mining” combined mechanism and innovative margin trading, BitMax.io recently launched its first volatility-linked derivative product, Volatility Card. Since then, it has been recognized as another step forward to better serve users’ dynamic trading needs from product offering perspective.
Since its inception, BitMax.io has always focused its development efforts on enhancement of user experience, trading liquidity and efficiency and ongoing product innovation by leveraging the team’s quant trading background and deep knowledge of capital markets. Specific example on the innovation aspect is its industry first combined trading mechanism of “Transaction-Mining & Reverse-Mining”.
Transaction mining is a unique exchange business model and process where users trade certain trading pairs and receive the platform native token, BTMX, as reward for trading on the platform. While there have been several exchanges running similar transaction mining model, BitMax.io is the only trading platform that offered a separate incentive structure for the Maker trades, namely Reverse-Mining process where BitMax.io users who execute maker trades can get rebate and return the same amount of BTMX token for permanent lockup.
To sum up, Transaction-Mining is the process of obtaining or ‘mining” the BTMX token by simply trading on the platform and paying transaction fee for both Maker and Taker trades; Reverse-Mining is a separate process for users to earn rebate and return those tokens back to the BitMax.io platform for maker trades. As integral part of BitMax.io ecosystem, those two mechanisms complement each other and support the equilibrium of BTMX token in circulation.
The introduction of industry first Transaction-Mining & Reverse-Mining combined mechanism is the first step of BitMax.io towards its mission to build deep liquidity on trading platform and further lead market structure optimization in digital asset trading. It has definitely generated a lot of trading activities with high transaction volumes as well as attracted many active traders on the platform with its proven BTMX token economics, even over the last several months of “crypto winter”.
BitMax.io enabled margin trading on Feb 14th, 2019. Margin trading on BitMax.io is a financial derivative instrument of cash trading, with which users can leverage tradable asset for potential higher return on investment with higher trading risk. The list of assets that can be traded on margin has increased from initial four to 18 different tokens, even including BTMX, the platform native token. (The margin trading function of BitMax.io is not available for North American markets.)
Also, it helps to attract more trading volume, hence boosting liquidity on the platform.
The following key features make BitMax.io margin trading function even more friendly compared to other platforms that provide similar functions.
In traditional finance, many different volatility derivative products have been developed for active traders to capitalize upon short-term trading momentum and use as risk hedging mechanism. However, in digital asset trading, with recent raging volatility, there have been only a handful of derivative products available.
Hence there is a strong market demand for a new type of volatility product to gain exposure to the increasing volatility for both trading and risk management purposes, especially an entry-level product for both retail and institutional users.
Volatility Card is an innovative volatility-linked derivative product designed by Dr. George Cao, the Co-founder & CEO of BitMax.io. Named as Turtle and Bunny Card after Aesop’s fable – the Tortoise and the Hare, the card has quasi-option structure for underlying trading pairs yet largely simplified payout form.
User can purchase different card for the prediction of price movement either within certain range (Turtle Card) or above certain range (Bunny Card). Those who predict correct range of price movement will receive the payout equivalent to notional value of the card.
Volatility Card uses simplified payout form without complication of settlement and clearing issues common for real currency options. Users just simply select which card to purchase to trade on their view of volatility of underlying asset either within or above certain range. It is easy to understand and use for all types of traders with need for either very short-term momentum trading or partial risk hedging against outsized price swing in very volatile market condition.
Keen on leading industry innovation, BitMax.io has been well recognized in the highly competitive digital asset trading space with its dynamic margin trading and unique “transaction-mining & reverse-mining” mechanism.
Volatility Card is another step forward to further expand its comprehensive product suite leveraging their deep root in traditional finance and experience with financial product design. With its potential function to mitigate risks as well as trade on momentum, the product helps attracting more users to the platform. We believe it is also a positive sign indicating the market is developing along the right direction.