KuCoin’s Derivatives Exchange Launches BTC Quarterly Futures

The platform is offering 20x leverage on the contracts.

KuMEX, the derivative arm of KuCoin, on Thursday, announced the launch of Bitcoin quarterly futures contracts.

These contracts are different from the usual perpetual contracts on the exchange, have an expiry date, and will be settled to a price derived from the underlying asset according to a prespecified rule.

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Already available to trade, the delivery date of the KuMEX Bitcoin quarterly delivery contract is the last Friday of the contract month, and the price to settle at is a 30-minute time-weighted average price (TWAP) of the spot index at 12:00 UTC on the delivery date exchange detailed, the exchange detailed.

The derivative platform will list the quarterly contracts for two consecutive years.

“If today is May 1, then the contract month will be June and September,” the announcement detailed. “Traders can identify the contract month according to the contract ticker. For example, the ticker for a Bitcoin contract to settle in December 2019 is XBTZ19.”

Aggressive strategy to gain clients

The crypto exchange jumped into derivatives offering in July by launching KuMEX. It initially listed Bitcoin perpetual contracts against USD and also offers leverage of up to 20x to traders.

To provide an accurate price of the Bitcoin Spot Index, the platform uses volume-weighted average US dollar price of Bitcoin across six major crypto exchanges – Coinbase Pro, Bitstamp, Kraken, Gemini, Liquid, and Bittrex.

To attract traders on the platform, it has kept a negative makers fee of 0.025 percent while the taker fee has been set at 0.060 percent.

Earlier this month, the exchange also announced the Bitcoin monthly futures contracts.

Meanwhile, the crypto exchange is also gearing up to launch margin trading services, Finance Magnates reported.

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