BitWell Officially Launches Options Portfolio Product ‘Bull/Bear Contract’

Dear Users,

To further reduce users’ learning and operating costs for options and to provide a better trading experience for everyone, BitWell’s new options product, Bull/Bear Contract, is now officially online.

Bull/Bear Contract is an options portfolio product. You can think of it as a simpler, shorter-period European Options. Bull/Bear Contract lowers the threshold for users again, while offering greater flexibility.

How to Trade Bull/Bear Contract

1. Click ‘Bull/Bear Contract’ to enter the product page at the top of the website home page.

2. The middle of the interface is the market trend, and the right side is the order placing interface.

You can choose the currency and time period at the top left of the quotation interface. Bull/Bear Contract currently supports BTC and ETH, and the time period can be 30 minutes or 4 hours. At the same time, you can see the 24H volume and strike price of the corresponding product on the right side.

3. Introduction to the parameters of the order interface of Bull/Bear Contract.

The available balance is displayed at the top, along with the current 24H Quota 2000USDT limit remaining(reset at 0:00 Singapore time every day).

Click on the ‘Product Intro’, you can see the rules of PNL and spread acquisition in the pop-up window, as well as reference trade examples.

On the right side of the product introduction, we have prepared PNL calculator for you. After clicking on it, you can calculate the PNL based on the long or short direction, the predicted rise or fall rate, and the quantity of orders placed.

At the same time, above the ‘Buy Long’ and ‘Buy Short’ buttons, there is a ‘Breakeven’ price, which is calculated instantly for you according to the quantity of orders you want to place. Combined with the PNL calculator, you will have a clear picture of your profitability, making it easy to make decisions and judgments.

4.Position Inquiry Interface.

At the bottom of Bull & Bear Contract interface, you can check your current positions, as well as your historical positions.

If you have open positions, you can see the break-even point, as well as the immediate floating profit and loss.

In historical positions, you can see the final profit and loss, profit margin, etc.

The detailed rules of Bull/Bear Contract are as follows:

1. Supported Coins: BTC and ETH.

2. Contract Multiplier: BTC 0.01; ETH 0.1.

3. The time period is short, 30 minutes or 4 hours can be selected flexibly. Once a position is opened, it cannot be canceled or closed midway, and it only can be settled at the expiration time.

4. Only need to choose to buy long or short.

5. For buy long: At expiration, if the index price is higher than the strike price, you will get the spread of which: Per Cont PNL = Min{Open Price*5, Max[0, (Index Price at settlement – Strike Price)*Contract Multiplier]}.

For buy short: At expiration, if the index price is lower than the strike price, you will get the spread of which: Per Cont PNL = Min{Open Price*5, Max[0, (Strike Price – Index Price at settlement)*Contract Multiplier]}.

6. Profit is capped at 5 times the buy price.

7. In order to control risks and protect your account, currently, the maximum quota of open positions allowed for a single account is 2000 USDT per day (based on the open price).

For example, if you buy ETH-Long, no matter you choose 30 minutes or 4 hours, as long as the quota is over 2000 USDT, you will not be able to open another position within the same day, and the quota will return to 2000 USDT after 16:00 UTC time.

8. Buy Price Protection: The price users see on the trading page is the latest price, but due to network reasons, it may lead to trading delay, which means the price users see when placing an order is not consistent with the actual buy price. In order to prevent this situation and protect the benefits of users to the greatest extent, if the difference between the buy price on the trading page and the premium of the user’s order is greater than 1%, the order will not be filled.

9. Within the first month after launching Bull/Bear Contract, no opening fee will be charged.

Example of Bull/Bear Contract

To buy 50 ETH-Long (contract multiplier is 0.1), assume open price is 2.02 USDT/Cont, period is 30 minutes (30M), and the current ETH index is 2016 USDT (that is, the strike price), then the total options premium is 2.02*50=101 USDT. At expiration, if the index price is 2200 USDT, higher than the strike price 2016 USDT, you will get Min[2.02*5, (2200-2016)*0.1]*50=505 USDT, Net Profit is 505-101=404 USDT.

If there is a drop in ETH during this 30 minutes and it falls below 2016 USDT at settlement, you will lose the premium of 101 USDT.

Risk Warning:

Cryptocurrency investment is innovative blockchain products, and subject to price fluctuation. Please judge your risk-taking ability rationally and make your investments with caution.

BitWell is not responsible for any direct, indirect or consequential losses as a result of the cryptocurrency trading and holding.

BitWell Team
2021/04/20



BitWell is committed to building a fair and transparent global digital asset trading platform, providing investors with secure, convenient and intelligent blockchain derivatives trading services.

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