Bitfinex has announced its launch of cloud mining contracts and their availability for trade, joining a host of other companies with such offerings.
Each contract will be for 100 THs and last for 3 months. Total mining pool capacity is roughly 3500 THs. Contracts will trade under the symbol TH1 against BTC.
Pool fees are 3%. All other costs (hosting, power and maintenance) are included in the contract purchase price. There is also the standard trading fee of 0.1% for market takers, who remove liquidity from the market with orders immediately executable. There is no fee for market makers adding liquidity to the market. The fees are the same as for other alternative products such as Litecoin and Darkcoin and are lower than for Bitcoin.
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“Holders of record” are awarded “dividends” in accordance with mining profits. The value of the contract decreases toward zero as the expiry date approaches.
As with its other traded products, TH1 can be borrowed and sold short- a rare offering for mining contracts. Currently, the initial margin requirement is 25% but it may be lowered to 12.5% in the future.
The company notes that the offering is in live beta phase.