BXB Rule Book

BXB currently have two types of trading products: Crypto Trading Pair and Crypto Options.

 

Cryptocurrency Trading Pair Rules

We Take BTC/USDT as an example. For more details listed crypto trading pairs, please check the announcements.

InstrumentPrice MultipleTick sizeMinimum Order QuantityMaximum Order QuantityPrice RangeUnilateral Trading Fee
BTC/USDT0.0010.1 USDT11000Last Price * 130%0.1%

About Price Multiple:

Price Multiple is the amount of base currency we trade for 1 contract. For example, the Price Multiple of BTC/USDT is 0.001, so:

 

About Price Range:

Price Range is the maximum and minimum price for a new order that can be placed. It is bounded by the last price multiplied by plus or minus 30%. The maximum range then would be 130% of the last price and minimun range would be 70% of the last price. Taking BTC/USDT market as an example, if the last price was 7,000 USDT, then if you were to place an order, the maximum price that the system would allow you to input cannot exceed 9,100 USDT and cannot be lower than 4,900 USDT. This price range though wouldn't affect the orders already in the orderbook. For instance, if you placed an order and the last price was 7,000 USDT, then it suddenly grew to 10,000 USDT, the order with the price of 4,900 USDT would still go through as it was placed at the 7,000 USDT price.

 

Crypto Options Contract Rules

What Are Options?

Options are contracts that grant the right, but not the obligation to buy or sell an underlying asset at a set price on or before a certain date. BXB offers option products with underlying of cryptocurrencies.

An option contract for BTC1210P5800:

 

Option Contract Type

We Take BTC Options as examples. The details of all crypto options will be updated in the announcement.

  1. BTC Call Option

    The BTC Call Option allows the buyer of the contract to benefit from the potential price increase in the underlying instrument. The buyer pays the premium, and he/she has the right to obtain the difference between the settlement price of the relevant underlying instrument and the strike price on the maturity date (if the difference is positive), otherwise no payment will occur. All transactions are settled in USDT.

    For example, if you hold a BTC1210C7100 option contract, if the settlement price is 7,532 USDT (higher than 7,100 USDT) at 24:00 on December 10, which is in-the-money at the expiration date, you will receive direct income of 4.32 USDT (= (7532-7100)*0.01). If the Bitcoin price is 6,824 USDT (below 7,100 USDT), then it is out-of-money, and your return is zero, in such case you can sell the contract before the maturity date to obtain profit.

  2. BTC Put Option

    The BTC Put Option allows the buyer of the contract to benefit from the potential price decline of the underlying instrument. The buyer pays the premium, and he/she has the right to obtain the difference between the strike price and the settlement price of the relevant underlying instrument on the maturity date (if the difference is positive), otherwise no payment will occur. All transactions are settled in USDT.

    For example, if you hold a BTC1210P5800 option contract, if the settlement price is 5,539 USDT (below 5,800 USDT) at 24:00 on December 10, which is in-the-money at the expiration date, you will receive direct income of 2.61 USDT (= (5800-5539)*0.01). If the Bitcoin price is 6,531 USDT (higher than 5,800 USDT), then it is out-of-money, and your return is zero, in such case you can sell the contract before the maturity date to obtain profit.

Investors can only buy options, or close their option positions, but cannot short the options. Only BXB authorized market makers can short-sell. The investor's possible losses are limited to the initial investment, and the crypto option contract does not have a forced liquidation price or a margin call.

 

Crypto Option Contract Description

BXB's crypto option contracts are European call/put options. Currently we only offer monthly contracts which will be renewed on a monthly basis after the expiratation date.

Option UnderlyingBitcoin(BTC)
Contract Size100:1
Each option represents the expiring purchase/sell right of 0.01 BTC
Option TypeEuropean call/put options.
The option buyer can only exercise his rights on the expiration date (the exchange will automatically exercise for the option buyers)
Pricing CurrencyUSDT
Delivery MethodCash Delivery in USDT
Ticksize0.001 USDT
Minimum Order Quantity1
Maximum Order Quantity1000
Clearing & SettlementThe clearing and settlement will be completed on the day after expiry date.
Price RangeLast Price * 1500% for Limit Orders,
Last Price * 130% for Market Orders
Unilateral Trading Fee0.01 USDT value of BXT per contract
(At BXB, transactions fees of options are paid in BXT)
Position Limit10,000 contracts
Settlement PriceSettlement price would be the average of close prices of BTC/USDT listed on 4 Exchanges(BXB, Binance, Bitfinex, Huobi) on the expiration date. If any one of the price deviates from the average price for more than 0.5%, we would remove it and recalculate the price. We would quote at least 2 Exchanges' price for computation of settlement price.

 

Matching Rules

BXB deploy “Middle of Three” matching rule in trading. When the price of a limit buy order is greater or equal to the price of limit sell order, these two orders would be matched. The trade price would be equal to the middle of the three prices:

  1. When buy price sell price last price, new last price = sell price
  2. When buy price last price sell price, new last price = last price
  3. When last price buy price sell price, new last price = buy price

Withdraw/Deposit Rules

The exchange currently supports 3 types of cryptocurrency, and there is no specific limit on the amount of deposits. Other types of cryptocurrency in our platform should be exchanged to the 3 types above for withdrawal.

The exchange processes withdrawal applications once a day. The cutoff time for withdrawals is 15:00 (UTC+8). Shortly after that, transactions will be sent to the address you specified. Once you submit your withdrawal application, your corresponding funds would be frozen and can't be canceled until we finish verification and processing.

BXB stores all funds in cold multi-signature wallet

Even in the event of a full system compromise, including web servers, trading engine, and database, there would not be enough keys available to an attacker to steal funds.

Additionally, each and every withdrawal on BXB is audited by hand by at least two employees before sending. No private keys are kept on any cloud server and deep cold storage is used for the bulk of funds.

The rules for withdrawal are as follows:

CryptocurrencyMinimum Withdrawal Amount Per TransactionMaximum Withdrawal Amount Per TransactionDaily Withdrawal LimitWithdrawal FeeNumber of Block Confirmations
BTC0.01520.0012
USDT50250001000052
ETH0.150500.0132

If the user needs to withdraw above the specified limits, the user needs to upload a photo of themselves holding a piece of paper that displays the following:

  1. Documents used in KYC (ID or Passport)
  2. Today's date clearly written out
  3. Clear Front face

image-20180731155438907

If any disputes occur, please refer to the latest announcement.