BitMEX is committed to providing derivative products that serve all hedging and trading needs. The XBU chain has the following characteristics:
- The underlying is Bitcoin (XBT) / USD
- Each contract is worth $100 of Bitcoin
- Quoted in USD
- Margin, profit, and loss are denominated in Bitcoin
- The contracts settle quarterly vs. the 10:00 UTC – 12:00 UTC 1 minute Time Weighted Average Price (TWAP) on Bitfinex
The first XBU contracts are the following:
- 26 December 2014 XBT/USD Futures Contract (XBUZ14)
- 27 March 2015 XBT/USD Futures Contract (XBUH15)
- 26 June 2015 XBT/USD Futures Contract (XBUM15)
- 26 December 2014 – 27 March 2015 XBT/USD Calendar Spread (XBUZ14_H15)
- 26 December 2014 -26 June 2015 XBT/USD Calendar Spread (XBUZ14_M15)
Hedging and Arbitrage with XBU
If you are concerned about your exposure in USD terms, the XBU chain is ideal. Each contract is worth $100 of Bitcoin no matter the XBT/USD price. Hedgers are able to hedge an exact USD amount of Bitcoin. Arbitrageurs will be able to construct strategies of XBU vs. spot Bitcoin and XBU vs. other futures exchanges’ contracts that are similar. Please refer to the BitMEX blog post “Future vs. Future Arbitrage With The XBU Chain” to learn more about these strategies.