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Bit.com

Bit.com is a secure and high performance derivative exchange launched by the Bitmain spin-off Matrixport, an integrated financial services firm and household name in crypto.

Products

BO - BTC Options - European

Product Code
BO
Instrument
Options
Inst Sub Type
European
Settlement Type
Financial
Underlying Asset
Bit.com BTC Index
Min Block Size (Contract)
5
Min Description
Per Leg
Contract Multiplier
1 BTC
Min Price Increment
0.0001 BTC
Min Contract Increment
0.1

BF - BTC Futures

Product Code
BF
Instrument
Futures
Inst Sub Type
-
Settlement Type
Financial
Underlying Asset
Bit.com BTC Index
Min Block Size (Contract)
500
Min Description
Per Leg
Contract Multiplier
10 USD
Min Price Increment
$ 0.50
Min Contract Increment
1

VT - ETH Options - European

Product Code
VT
Instrument
Options
Inst Sub Type
European
Settlement Type
Financial
Underlying Asset
Bit.com ETH Index
Min Block Size (Contract)
100
Min Description
Per Leg
Contract Multiplier
1 ETH
Min Price Increment
0.0001 ETH
Min Contract Increment
1

ZW - ETH Futures

Product Code
ZW
Instrument
Futures
Inst Sub Type
-
Settlement Type
Financial
Underlying Asset
Bit.com ETH Index
Min Block Size (Contract)
5,000
Min Description
Per Leg
Contract Multiplier
1 USD
Min Price Increment
$0.01
Min Contract Increment
1

GD - BCH Option - European

Product Code
GD
Instrument
Options
Inst Sub Type
European
Settlement Type
Financial
Underlying Asset
Bit.com BCH Index
Min Block Size (Contract)
100
Min Description
Per Leg
Contract Multiplier
1 BCH
Min Price Increment
0.0005 BCH
Min Contract Increment
1

HM - BCH Futures

Product Code
ZW
Instrument
Futures
Inst Sub Type
-
Settlement Type
Financial
Underlying Asset
Bit.com BCH Index
Min Block Size (Contract)
5,000
Min Description
Per Leg
Contract Multiplier
1 USD
Min Price Increment
$0.05
Min Contract Increment
1

Notes

For a multi-product structure (i.e. Options and Futures) both the Options and the Futures component of the structure should meet their Minimum Block Size threshold

All Bit.com products are not US Cleared

Leg Pricing Assignment Methodology

Paradigm’s leg pricing methodology attempts to take the quoted strategy prices as entered by the maker and calculate individual leg prices subject to the following broad constraints:

1

Calculate leg prices as close to the mark as possible

2

Leg prices must be in increments of minimum tick size

3

Leg prices must be within the Min and Max prescribed by the exchange for each leg

4

For options strategies, leg prices must preserve delta relationships:

  1. Higher strike puts > Lower strike puts
  2. Higher strike calls < Lower strike calls

Important Pricing Points to Consider

Trade rejection due to timing differences between initial Price Band check (on Paradigm) and final price band check (on Bit.com)

  1. After the Maker enters executable prices, Paradigm conducts a price band check for the quoted strategy to ensure that the price(s) entered by the Maker are within the permissible price bands set by the exchange. These price bands are calculated by Paradigm using the Min and Max of the individual legs in the strategy.
  2. However, Bit.com performs its own price-band check at the time of trade execution i.e AFTER the trade message is submitted to Bit.com.
  3. Consequently, there is a time lag between the initial price band check performed by Paradigm (after Maker enters executable prices) and the price band check performed by Bit.com (at the time of trade submission). This time lag may vary depending upon when the Taker decides to confirm the price, but is capped at a max of 20* seconds (plus a minimal amount of time it takes for Bit.com to receive the trade message transmitted by Paradigm
  4. During this time, there is a chance that the price bands for the individual legs (have changed meaningfully enough to cause the executed price to be outside the new price bands for the quoted strategy. If this is true, Bit.com will reject the trade.

* 20 seconds corresponds to the longest setting for the trade execution window on Paradigm, configurable via the web dashboard.

Manual entry for individual leg prices when Paradigm is unable to calculate leg prices that are “sensical”

  1. Bit.com Min/Max values for certain strikes in the option chain can overlap (i.e. Max of lower strike put can be higher than Min of higher strike put). As a result certain strategies prove difficult to calculate leg prices that satisfy conditions stated above (1,2,3) and also specifically preserve delta relationships (4).
  1. In these rare instances, Paradigm will ask the Maker to input individual leg prices and submit those prices to Bit.com. Note that in such cases, Paradigm DOES NOT do any checks to ensure that the leg prices preserve delta relationships and prices will be submitted on an “as is” basis.

Currently, Paradigm does not allow zero or negative prices for the following strategies

  1. Straddles
  2. Strangles
  3. Non-ratio, single-expiration Put and Call Spreads