Leverex

FE: 192b4768, BE: N/A
[email protected]

Trading

  • Leverex offers rolling mini futures on bitcoin with a fixed leverage ratio of 10x
  • You can start trading with as little as 10 USDT
  • Our innovative margin and settlement model removes funding costs and forced liquidations
  • Profit and loss is automatically settled every hour, on the hour, 24/7/365
  • Products trade and settle in USDT, at no point is the underlying asset handled
  • USDT is deposited to enter long or short positions with a fixed leverage ratio of 10x
  • The margin requirement of 10% is calculated by the last settlement price
  • The settlement price is an externally sourced and independent price, calculated as the average mid-point of four competitive exchanges
  • Trading is continuous 24/7/365
  • Each hour, on the hour, settlement is automatically carried out by Leverex in USDT
  • Traders cannot go into a negative account balance
  • Positions that have not been closed are automatically rolled over to the next session to the extent that sufficient margin is on account
  • If a trader has insufficient margin to reopen the full position, the position size will be automatically scaled down during settlement (no forced liquidations occur on Leverex)

Trader A and Trader B

  1. Trader A has USDT 5’000 of buying power and no open positions.
  2. Trader B has USDT 6’000 of buying power and no open positions.

Session 1 – opening trade

  1. The session opening price (the last hourly settlement price) is BTC/USDT 30’000.
  2. Trader A goes long 1 BTC @ 30’000 and posts margin of USDT 3’000 and keeps USDT 2’000 of buying power.
  3. Trader B posts USDT 3’000 USDT of margin to open a short position of 1 BTC. USDT 3’000 of buying power remains.
  4. Trader B goes short 1 BTC @ 30’000 and posts margin of USDT 3’000 and keeps USDT 3’000 of buying power.

Session 1 - settlement

  1. The contract settles @ 30’300 USDT. At session close, margins are repaid, profit/loss settlement occurs, and the net exposure is rolled.
  2. USDT 3’300 is returned to Trader A. Trader A’s buying power is now USDT 5’300. The net exposure of long 1 BTC is rolled, for which USDT 3’030 is margined and USDT 2’270 of buying power remains.
  3. USDT 2’700 is returned to Trader B. Trader B’s buying power is now USDT 5’700. The net exposure of short 1 BTC is rolled, for which USDT 3’030 is margined and USDT 2’670 of buying power remains.

Session 2 – second trade

  1. Trader A goes short 1 BTC @ 29’400. Trader A now has two positions. Long 1 BTC @ 30’300 and Short 1 BTC @ 29’400. Net exposure is zero. Margin is reduced to USDT 900, the maximum loss of the offsetting positions, and buying power is USDT 4’400.
  2. Trader B goes long 1 BTC @ 29’400. Trader B now has two positions. Short 1 BTC @ 30’300 and Long 1 BTC @ 29’400. Net exposure is zero. Margin is USDT 0, as no loss can occur from the offsetting positions regardless of session closing price. Buying power is USDT 5’700.

Session 2 - settlement

  1. The contract settles @ 29’600. At session close, margins are repaid, profit/loss settlement occurs, and the net exposure is rolled.
  2. USDT 200 is returned to Trader A. Trader A’s buying power is now USDT 4’600. As there is no net exposure, no positions are rolled, and Trader A is flat.
  3. USDT 700 is delivered to Trader B. Trader B’s buying power is now USDT 6’400. As there is no net exposure, no positions are rolled, and Trader B is flat.

Leverex offers a margin trading platform with a set leverage of 10x. Simply put, users can go long or short by posting a 10% margin of the current cut-off price. That allows users of Leverex to aim for higher profits. E.g., if the last cut-off for BTC/L-USDT was @ $30,000, then a 3,000 L-USDT balance is required to go Long or Short 1 Bitcoin.

Risks are minimized by defined profit and loss schedule for each session. Moreover, positions are liquidated at the session cut-off price without slippage or cascading defaults due to local order book illiquidity

Settlement defaults are not possible with the implemented risk model.

If a user's net exposure cannot be carried over to the next session due to a margin shortage, the user's position will be reduced until the margin requirement is equal to the available cash balance. This selection process ensures the highest degree of integrity in future Settlements.

Leverex risk model is designed to prevent negative account balances and legal clawback scenarios. It is purpose-built from the ground up to provide a defined risk and pay-out structure with maximum capital efficiencies.