Bitcoin Derivatives Trader CryptoFacilities Now Supports Margin Netting, Bans US Residents

UK-regulated bitcoin derivatives exchange CryptoFacilities has released an update to its customers detailing recent service changes.

It was announced that CryptoFacilities now support margin netting across Forward maturities. If customers set up a long position in one Forward maturity and a short position in another, only the position with the larger margin requirement will be counted, allowing users to exploit price differences across Forward maturities without putting up too much margin.

The example that was given was: You buy 5 Forwards in the June 16 maturity and sell 5 Forwards in the September 16 maturity. The Initial Margin requirement is 5 x 0.20 = 1.00 bitcoins for your long position and 5 x 0.14 = 0.71 bitcoins for your short position. Your total margin requirement, however, is only: max( 1.00, 0.71 ) = 1.00.

Unfortunately for users in the USA, CryptoFacilities has stopped servicing American residents for the immediate future due to the regulatory uncertainty around its products in this jurisdiction.

CryptoFacilities has also made some changes and improvements to its platform over the past couple of months:

  • Historical charts of the Forward contracts are available in Trading View, accessible on the Trading Page. Trading View is a charting tool and allows users to add indicators, overlay different contract maturities and more.
  • On the Account Page under “Summary”, users can now see various Trigger Estimates. These represent estimates of the bitcoin price level that will trigger margin requirements. For example, the Trigger Estimate shown next to “Liquidation Threshold” is the approximate bitcoin price that will trigger a liquidation of the users current position.
  • On the same page in the “P&L From Open Positions” section, it is now also possible to find the Forward Mark Prices to which CryptoFacilities marks users open positions to estimate running profit and loss. This does not affect the actual profit or loss once a position has been closed and is shown only for informational purposes.
  • Two additional order types have been implemented: Stop Orders and Market orders. In addition, handling has been improved on the Trading Page to allow for faster order entry via keyboard and mouse.

Furthermore, CryptoFacilities storage solution with Elliptic is now free of charge. Elliptic will store bitcoins on CryptoFacilities behalf on their offline servers and users can verify their portfolio value on the blockchain every day.

An Analytics Page has been added where users can track the computation of the real time index CF-BPI and our once-a-day reference rate CF-HBPI. The latter is used in settlement, and users can verify the settlement price by clicking on the dots in the chart to download full tick data calculation detail. The Analytics Page also contains charts of absolute and relative Forward premia over all contract maturities.

Lastly, the UK-based derivatives platform says that improvements to its matching engine has led to orders being matched 10x to 100x faster than before.

Crypto Facilities Ltd (FRN 630784) is an appointed representative (AR) of Met Facilities LLP which is authorized and regulated by the UK’s Financial Conduct Authority (FRN 587084).

Based near Windsor, England, Matthew Warner is an enthusiast for innovative, cutting edge technologies. He is a B.Eng. graduate in engineering with honors from the University of Warwick and also holds an PGCE in education degree. Matthew is a member of Mensa.
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