Cryptocurrency exchange BitMEX, with its newly added contract, begins to offer users the opportunity to invest in ETHPoW.
Expanding the number of assets it lists, BitMEX continues its research activities. The company has added a new asset to the listed assets that will allow its users to invest.
BitMEX Provides Opportunity to Its Users with ETHPoW Contract
BitMEX, new linear futures contracts ETHPOWZ22 offers its investors the opportunity to invest in ETHPoW. The exchange allows users to invest in ETHPOW using up to 2x leverage with the Tether (USDT ERC-20) margin contract.
ETHPOWZ22, which BitMEX started listing, is a linear futures contract collateralized with USDT (ERC-20). ETHPOWZ22 works similar to a regular futures contract. However, the contract also contains some differences. The first of these differences is the price method. ETHPOWZ22 uses the final price method.
BitMEX prefers to use the last price method as ETHPoW has no observable price yet. On the other hand, in order to protect the industry from manipulations, the price limits of the contract are set every hour. In addition, the limits are set at +/- 20 percent up and down. Traders cannot bid above or below the limit increase price.
Once it is possible to produce a solid index representing the spot price of ETH Proof of Work Coin, BitMEX will create the BETHPOWT index. After that, the pricing method will be changed to fair price. The BETHPOWT value will be set to 0 until such an Index is created. If no index has been created until the maturity date, the settlement value will be 0.
