Policy on Bitcoin Hard Forks

Anyone can create a chain fork of Bitcoin at any time. The possibility of a User Activated Hard Fork (UAHF) on 1 August 2017 requires that we clarify our position on any and all potential hardforks.

BitMEX Policies

At BitMEX, our top priority is protecting the assets of our customers. In order for us to effectively do this, we insist that any Bitcoin hard fork includes the following:

  • Strong two-way replay protection, enabled by default, such that transactions on each chain are invalid on the other chain.
  • A clean break, such that the new chain cannot be “wiped out” by the original chain.
  • A modification to the block header such that all wallets (including light clients) are required to upgrade to follow the new chain.
  • A minimum of three months of open testing and review, before the client is formally released and a further three months after this, before the fork activates.

Should a hardfork not follow these policies, we will not list the coin and may not allow users to withdraw this coin from BitMEX. To be clear, we do not intend to access or keep these coins. The administrative overhead of distributing any and all hardforked coins (including Bitcoin-based distributions like Byteball/Lumens) is prohibitive and BitMEX will not monitor or maintain balances of hard-forked coins.

Additionally, support of any forked currency is solely at the discretion of BitMEX. While we will snap users’ margin balances at the time of the fork in case we decide to distribute, there is no guarantee that it will be safe, desirable, or practical to do so. If this concerns you, you should withdraw your funds before any given fork and handle the split on your own.

In a future case where a block size increase has supermajority support of the community and is handled responsibly, BitMEX intends to follow said chain and we will communicate with our traders accordingly.

1 August 2017 UAHF BitMEX Policy

The Bitcoin Cash (BCC) proposal is aimed at increasing the blocksize. It is scheduled to take place on 1 August 2017. This change is incompatible with the current Bitcoin ruleset and therefore a new coin may be created, which is to be named “Bitcoin Cash”.

It is our understanding that the UAHF proposal does not include two-way replay protection enabled by default. Should the UAHF occur, BitMEX may be unable to protect the new Bitcoin Cash tokens on behalf of clients.

As such, BitMEX will not support the split or distribution of Bitcoin Cash, nor will BitMEX be liable for any Bitcoin Cash sent to BitMEX. Therefore, it is up to our users to withdraw from BitMEX prior to August 1st if they wish to access Bitcoin Cash tokens or any other hardfork.

BitMEX considers any and all hardforks in this vein as altcoins. The .BXBT and .BXBTJPY indices will remain unchanged and will not include BCC.

Policy on BIP91, BIP148, and a Potential Chain Split

There is potential for the Bitcoin network to split if BIP91 (“Reduced Threshold SegWit MASF”) is not activated before the BIP148 UASF (“Mandatory Activation of SegWit Deployment”) start time of 01 Aug 2017 at 00:00 UTC. The following actions will be taken by BitMEX in the event of a potential network split:

Wallets

  • If BIP91 locks-in and enters an activation period (336 blocks, approximately 56 hours), starting 4 hours before the potential activation time, BitMEX will require 6 block confirmations before crediting deposits due to the threat of a blockchain reorg as non-segwit blocks will be orphaned. This restriction will be lifted shortly after BIP91 activates, once BitMEX principals have ascertained that the chance of further reorgs is below a safe threshold.
  • If BIP91 does not activate before 31 July 2017 13:00 UTC, deposits and withdrawals will be halted until further notice in anticipation of a possible chain split. A round of withdrawals will be processed that day.
  • If you wish to trade the chain split, this date is also the deadline for deposits.
  • If there is a prolonged chain split and thus there are two or more versions of Bitcoin, once enabled, BitMEX will process withdrawals of the majority and minority chain.
    • In order for coins on either chain to be properly withdrawn, a viable method of avoiding replay attacks must be developed.
      • While there is a risk of a replay attack (transactions on one chain also being valid on another), it will not be possible to process deposits or withdrawals.
    • BitMEX will create a snapshot of user’s margin balances (including unrealised PNL) on 31 July 2017 13:00 UTC. A user’s balance of the minority chain’s coins will be equal to his/her balance at this time.

Contract Settlement and Marking

  • If the Bitcoin network splits, currently-listed futures at the time of the split will settle on the sum of spot exchange-listed versions of Bitcoin.
    • It may not be possible to predict or plan to get reliable pricing data from our current Index exchanges, or they may not list the minor coin(s) at all. In the event of a network split BitMEX reserves the right to move all Bitcoin derivatives to Last Price Protected Marking, until a stable index can be composed.
    • Each chain will be represented by a different index, and the sum will be taken to compose the Mark and Settlement Prices. The indices will be separated as to handle a split whereby not every constituent of the BitMEX Index lists a chain.
      • For example, if “Classic” (pre-BIP148) coins are listed on Bitstamp but not GDAX, the Bitstamp “Classic” price will comprise 100% of that part of the index sum.
  • Contracts listed after the split will settle on one version of Bitcoin, chosen by BitMEX. Only contracts listed pre-split will settle on the sum.
  • After the split, the XBTUSD Perpetual Swap will be timed to switch underlying indices in tandem with a futures contract. Ample notice will be given. Like futures, the new index will reference only one chain.

EOS and Tezos Futures Contracts Now Live

Behold the clash of the Titans! We believe that the EOS and Tezos token sales will be the largest of 2017.

EOS Futures

BitMEX is proud to announce the launch of EOS Futures contracts, expiry 28 July 12:00 UTC with symbol EOSN17. Each contract is worth 1 EOS and the contract offers 2x leverage.

Since the EOS platform is still under development, the following rules will apply:

  • If no EOS auction is completed before the expiry date, EOSN17 will settle at 0.
  • EOSN17 will have 25% Up and Down Limit against the previous session close price to prevent price manipulation. Each session is 2 hours long, and session closes occur every even numbered hour.
  • Settlement will occur either at the most recent EOS auction price (if EOS/XBT trading has not begun) or at the .EOSXBT30M Index Price if EOS/XBT has begun trading prior to 27 July 12:00 UTC.

Further details about this contract can be read in the EOS Series Guide.

Tezos Futures

BitMEX is proud to announce the launch of Tezos Futures contracts, expiry 29 December 12:00 UTC with symbol XTZZ17. Each contract is worth 1 XTZ and the contract offers 2x leverage.

Since the Tezos platform is still under development, the following rules will apply:

  • If the Tezos crowdsale is not completed before the expiry date, XTZZ17 will settle at 0.
  • XTZZ17 will have 25% Up and Down Limit against the previous session close price to prevent price manipulation. Each session is 2 hours long, and session closes occur every even numbered hour.
  • Settlement will occur either at the ICO price (if XTZ/XBT trading has not begun) or at the .XTZXBT30M Index Price if XTZ/XBT has begun trading prior to 28 December 12:00 UTC.

Further details about this contract can be read in the XTZ Series Guide.

Bitcoin Basis and Arbitrage Trading 101

BitMEX CEO, Arthur Hayes, will lead an interactive seminar geared towards traders who would like to take advantage of very profitable arbitrage opportunities trading Bitcoin derivatives. He will discuss in depth the following arbitrage strategies:

  • Cash and Carry
  • Stair Step Cash and Carry
  • Funding
  • Swaps vs. Futures

Date: 29 June 2017

Time: 7pm to 9pm

Location: The Hive, 23 Luard Rd, 21/F The Phoenix, Wanchai, Hong Kong

Cost: Free

Given the recent surge in interest, we expect this event to be standing room only. Please RSVP on Eventbrite to secure your spot.

If you are unable to attend, a video recording will be available shortly after the event on the BitMEX Youtube Channel.

Notice Regarding BitMEX Futures Contracts

The following contracts will begin trading Friday 16 June 2017 08:00 UTC:

  • DASHU17
  • ETHU17
  • LTCU17
  • XBJU17
  • XBTU17
  • XMRU17
  • XRPU17
  • ZECU17

The following contracts will not re-list on Friday 16 June 2017 12:00 UTC:

  • REP7D

The following currency pairs will not have BitMEX derivative contracts after Friday 30 June 2017 12:00 UTC:

  • FCT / XBT
  • GNO / XBT
  • REP / XBT (Delisted effective 16 June 2017 12:00 UTC)
  • XBT / CNY

Status Futures Now Live

BitMEX is proud to announce the launch of Status Futures contracts, expiry 28 July 12:00 UTC with symbol SNTN17. Each contract is worth 1 SNT and the contract offers 2x leverage.

Since the Status platform is still under development, the following rules will apply:

  • SNTN17 will have 25% Up and Down Limit against the previous session close price to prevent price manipulation. Each session is 2 hours long, and session closes occur every even numbered hour.
  • Settlement will occur either at the ICO price (if SNT/XBT trading has not begun) or at the .SNTXBT30M Index Price if SNT/XBT has begun trading prior to 27 July 12:00 UTC.

Further details about this contract can be read in the SNT Series Guide.

Hong Kong Altcoin Arbitrage Seminar

Bitcoin trading strategies are becoming more well known; however, other digital currencies (altcoins) are also gaining in popularity. BitMEX CEO, Arthur Hayes, will lead a seminar on how to apply simple arbitrage strategies to the altcoin universe.

Arthur will discuss the following strategies:

– Cash and Carry Arbitrage
– Create to Lend
– Altcoin Market Making
– ICO trading using derivatives

 

Date: 17 May 2017

Time: 7pm – 9pm

Location: The Hive, 23 Luard Rd, 21/F The Phoenix, Wanchai, Hong Kong

Cost: Free

Please RSVP using Eventbrite.

Notice Regarding Gnosis Futures Contracts

The following will be effective 2 May 2017 12:00 UTC:

  • The .GNOXBT Index will use the most liquid GNO/XBT spot exchange’s price. At this moment, it appears that the most liquid exchange will be Poloniex.
  • GNOM17 will switch from Last Price to Fair Price Marking. Please read Fair Price Marking for more details on how this will affect trading.
  • The Limit Up / Down restrictions will be removed.