Deribit, the Bitcoin futures and options exchange, is introducing the Deribit Perpetual, a trading product that tracks the Bitcoin price, while allowing for very cost effective and efficient trading. Deribit has one of the most advanced trading platforms in the market, able to handle thousands of order requests per second with a transaction speed of around only a few milliseconds per order.
The ‘Perpetual’ is a hugely popular product that tracks the Bitcoin price. It allows traders to take positions without exchanging any Bitcoin, features low fees, and allows traders to take large positions with only a small capital outlay. It was previously only offered by one other exchange but it is still responsible for between 40 and 50 percent of total global Bitcoin trading. The Deribit Perpetual was launched in Beta two weeks ago and already the product is the largest product on the exchange while being responsible for a more than 50% volume increase.
Deribit has one of the most advanced trading platforms in the market, able to handle thousands of order requests per second. Now, Deribit is introducing an alternative Perpetual with much faster trade execution, fairer liquidation mechanics, and more transparency.
The Deribit Perpetual provides traders with:
- Low Fees: Charging just 0.075% on market orders, paying 0.025% on limit orders
- Extremely fast trading: Executing transactions in a few milliseconds
- Stability: Making continuous payments to keep the price of the Deribit Perpetual close to the Bitcoin price
- High Leverage: Traders can take up to 100x leverage
- Fair Liquidation: Ensuring that the closing out of a leveraged trade does not hurt more than it has to.
If the price moves against a leveraged trade, a position will eventually need to be liquidated to ensure there is always enough capital leftover in the account to cover any losses. A number of high profile incidents have resulted in large losses for traders. Deribit has designed a fair liquidation mechanism that continuously tries to bring the position back into compliance by closing the position on an incremental basis. If a position is completely closed out customers receive any collateral that is left over.
The Deribit Perpetual executes ‘funding payments’ between the buyers and the sellers of the contract to keep the price of the Perpetual close to the Bitcoin price. Instead of making funding payments once every 8 hours that cause bumps in the price around the time of the payment, the Deribit Perpetual makes tiny payments on a millisecond basis completely avoiding price disturbances.
The Deribit Perpetual was launched in beta on August 14th. After its official launch on Tuesday the 28th, Perpetuals on other cryptocurrencies like ETH and BCH will follow soon.
”The Deribit team is extremely proud of the Deribit Perpetual,” says Deribit CEO, John Jansen. “We expect its execution speed, transparent pricing and fair leverage mechanics will satisfy the growing number of traders demanding ever more professional products.”
About
Deribit was founded by John Jansen, an early crypto investor with a background in options trading on the Amsterdam Options Exchange. In 2014, after a period trading crypto’s on different exchanges, he developed a vision of an exchange where it would be possible to trade Futures, Options and other derivative products in a secure, high performance environment. After two years of intensive development Deribit went live on June of 2016. Currently, Deribit is the number 3 crypto futures exchange and the top crypto options exchanges globally.