Hashprice NDF

Luxor facilitates price discovery and trade execution by bringing together buyers and sellers of hashprice NDFs, managing counterparty risk, providing the Luxor Position Manager for daily profit and loss calculation, and acting as the settlement agent, as the contract is settled to Luxor's Bitcoin Hashprice Index.

The buyer and seller of an NDF contract agree to the following variables:

• Unit Hashprice: (e.g., $65.00 per PH/s/Day)
• Daily Hashrate: (e.g., 50 PH/s)
• Duration (e.g., 90 days)
  • Standardized contracts (1, 2, 3, and 6-month NDFs)
  • Custom contract duration

Contract Specifications

Margin, Margin Schedule, & Collateral

Overview

Initial Margin Requirements are a % of the Notional Amount in a currency or asset designated by Luxor, in its sole discretion. The Initial Margin amount shall be determined by the Margin Calculation of Luxor. The Initial Margin calculation methodology and any updates will be provided upon request.

Current Procedures

Luxor’s USD and BTC-Denominated Bitcoin Hashprice Non-Deliverable Forward contracts settle daily to Luxor’s USD and BTC Hashprice Index respectively.

• Realized gain (loss) calculations are based on:
  • Daily contract expiration
    • When a daily position expires, it is settled to Luxor’s USD or BTC Bitcoin Hashprice Index.
  • Offset future daily positions
    • When a future position is offset (i.e., the counterparty has both a long and short position on the same day), the difference between the weighted average unit hashprice of units sold and units bought is multiplied by the number of offset contracts, and realized as a gain or loss.
• Unrealized gain (loss) calculations are based on:
  • Non-offset future daily positions
    • When a future position is not offset, the weighted average unit hashprice of the non-offset position is marked-to-market using the most recent daily settlement rate of Luxor’s USD or BTC-denominated Bitcoin Hashprice Index.
• Realized margin balances are calculated as: margin deposits + realized gain (loss) - margin withdrawals. Unrealized margin balances are calculated as: margin deposits + realized gain (loss) + unrealized gain (loss) - margin withdrawals.

Eligible Margin

U.S. dollar bank wire, USDC and Bitcoin are the only assets Luxor will accept as margin for NDF products. The margin must be denominated in the same currency as the NDF contract. Eligible collateral for each Luxor Bitcoin Hashprice NDF product are outlined in the table below:

Variation Margin

The purpose of Luxor’s variation margin procedures is to protect Luxor from the current financial exposure that has already been incurred by counterparties, primarily from changes in the mark-to-market value of contracts after initial trade execution.

For Luxor’s Bitcoin Hashprice NDF, variation margin will be collected when a counterparty’s unrealized margin balance falls below the maintenance margin requirement (as defined in the schedule below). The full amount necessary to fully cover the mark-to-market exposure, as defined by the maintenance margin schedule, will be collected from counterparties. If the margin previously collected fully collateralizes the mark-to-market exposure of the counterparty, as defined by the maintenance margin schedule, then no variation margin will be exchanged.

Settlement