Luxor’s Non-Deliverable Bitcoin Hashrate Forward
Manage Risk Trade Bitcoin Mining Exposure and with Luxor’s Non-Deliverable Hashrate Forward
Luxor’s Non-Deliverable Hashrate Forward (NDF) is our flagship product, built around our own Hashprice Index, which tracks the expected daily return on 1 petahash of hashrate, in Bitcoin or USD terms.
This instrument serves two primary functions:
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It allows Bitcoin miners to lock in their future hashprice, from one petahash to multiple exahash and durations from one to twelve months.
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It gives traders the ability to get synthetic exposure (long or short) to the variables that influence hashprice: bitcoin price, network difficulty, and transaction fees.
Agreement Details
Underlying Asset: Luxor’s Bitcoin Hashprice Index
Sides: Buy or sell
Unit Hashprice: As agreed by counterparties (i.e., USD or BTC per PH/s/Day)
Min. Price Increment: $0.01 or 0.00000001 BTC per PH/s/Day
Daily Contract Size: 1 PH/s/Day
Contract Tenors: Monthly, up to 12 months out; custom contract durationsavailable
Notional Value: Unit Hashprice x Daily Contract Size x days
Payment Type: Standard future payment
Settlement Type: Non-deliverable, cash-settled
Daily Settlement Rate: Avg. of Luxor’s Bitcoin Hashprice Index (15s intervals over every UTC day) over contract duration
Buyer Daily Settlement Amount: [Settlement Rate - Unit Hashprice ] x Daily Contract Size
Seller Daily Settlement Amount: [Unit Hashprice - Settlement Rate ] x Daily Contract Size
Initial Margin Requirement: 18% for BTC or 35% USD Contracts
Accepted Currencies: USD, USDC, or BTC