Bitfinex’s 100x Leverage Derivatives Now Available

Bitcoinist September 3, 2019
Updated 2019/09/03 at 9:00 AM
3 Min Read

Crypto exchange platform operator Bitfinex just added two derivative products with the tickers BTCF0/USDt0 and ETHF0/USDt0. The derivatives went live after Bitfinex implemented a system upgrade.

The “Perpetual Contracts” Come with Up to 100x Leverage

Bitfinex’s so-called perpetual contracts have been in development since at least several months. According to a whitepaper published in May, the platform’s parent iFinex stated:

Qualified Bitfinex account holders will be able to trade a new hedging product through a derivatives wallet. The product will have USDt-based collateral (unavailable in the rest of the market), up to 100x leverage and isolated margin for individualized risk level.

While these trading products are similar in nature to high leverage derivatives offered by BitMEX, Bitfinex stressed that they would be mostly used as hedging tools rather than for gambling.

For those unfamiliar, leverage is an instrument used by traders to enter the market with borrowed funds. This is helps traders increase the potential return. However, the higher is the leverage, the higher the risks.

Both BTCF0/USDt0 and ETHF0/USDt0 pairs went live after the Bitfinex site was down for several hours to implement an upgrade.

Bitfinex BTC/USDT and ETH/USDT derivatives just went live

— Degam (@ItsMeDegam) September 2, 2019

It’s worth mentioning that US citizens and residents of Canada, Switzerland, and Seychelles cannot trade the newly listed derivatives.

Interestingly, Bitfinex’s derivatives launched the same day when Binance announced that it had developed two separate versions of a futures trading platform. It would pick the final option based on user preference.

It seems that these launches supported the crypto market a bit, with Bitcoin gaining over 3% in the last 24 hours, according to Coinmarketcap data.

Bitfinex Launches New Platform

Besides the scheduled platform downtime, Bitfinex parent announced the launch of a new platform in an effort to expand its product capabilities. The new entity, called iFinex Financial Technologies Limited and registered in Seychelles, will provide new products to verified Bitfinex clients, probably derivative products too.

The company’s CTO Paolo Ardoino commented:

We are excited about the possibilities for creating new, previously unavailable products through our new platform. The new platform expands our ever growing portfolio and cements Bitfinex as a market leader in innovation.

Do you think Bitfinex is moving in the right direction by adopting such risky trading instruments? Share your thoughts in the comments section!

Images via Shutterstock, Twitter: @ItsMeDegam

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