BitMEX currently offers 2 types of ADA derivative products for traders. The first is in the form of a Cardano / Tether (ADA/USDT) Quanto Futures Contract and the second is in the form of a Cardano / Bitcoin (ADA/XBT) Futures Contract.

On BitMEX, the ADAUSDT Futures Contract allows traders to speculate on the future value of the Cardano / Tether (ADA/USDT) exchange rate.

A Bitcoin Quanto ADA/USDT futures contract has a fixed Bitcoin multiplier regardless of the USDT price of ADA. This allows the trader to go long or short the ADA/USDT exchange rate without ever touching ADA or USDT. The trader will post margin in Bitcoin, and make or lose Bitcoin as the ADA/USDT exchange rate changes.

The ADAUSDT futures’ underlying is the ADA/USDT exchange rate as recorded in the .BADAT Index. The futures are quoted in USDT and all margin and PNL calculations are denominated in Bitcoin.

Contract Calculations Bitcoin Multiplier per 1 USDT 0.01 XBT XBT Value ADAUSDT Price * Bitcoin Multiplier USD Value XBT Value * .BXBT Spot Price ADA Value* USD Value / ADAUSDT Price Bitcoin PNL Calculation (ADAUSDT Exit Price - ADAUSDT Entry Price) * Bitcoin Multiplier * # Contracts

*Assumes USD/USDT rate of 1

Traders who think that the price of ADA will rise will buy the futures contract. Conversely, traders who believe the price will drop will sell the futures contract.

All margin is posted in Bitcoin, that means traders can go long or short this contract using only Bitcoin. The ADAUSDT Quanto Futures feature a leverage of up to 25x.

For example, to buy 25 Bitcoin worth of contracts, you will only require 1 Bitcoin of Initial Margin.

The ADAUSDT futures contracts settle on the .BADAT30M Index Price. Settlement will occur on the last Friday of the Settlement Month.

BitMEX Derivative: ADAUSDTZ20 Quanto Future Contracts: 100,000 Bitcoin Multiplier per 1 USDT: 0.01 XBT .BXBT Spot Price: $10,000 ADAUSDT Futures Price: 0.10000 Trade Inception Jaewon and Wang trade the ADAUSDTZ20 Quanto Futures against each other for 100,000 contracts. Jaewon goes long, and Wang goes short. For each 1 USDT move, the contract pays out 0.01 XBT; this is called the Bitcoin multiplier. They agree that each side can use 25x leverage, which means they post 4.00% initial margin to BitMEX to initiate the trade. To calculate the Bitcoin margin, they first calculate the Bitcoin value of their ADAUSDTZ20 Quanto Futures. XBT Value = ADAUSDT Price * Bitcoin Multiplier * # Contracts 100 XBT = 0.10000 * 0.01 XBT * 100,000 Initial Bitcoin Margin = 100 XBT * 4.00% = 4 XBT They both like to think in ADA terms at any given ADAUSDT price. On the BitMEX Position Table, they are able to view the current value of their position in ADA terms. USD Value = XBT Value * .BXBT Spot Price = 100 XBT * $10,000 = $1,000,000 ADA Value = USD Value / ADAUSDTZ20 Price 10,000,000 ADA = $1,000,000 / 0.10000 They notice that the ADA value can change when the ADAUSDT price changes. The only fixed number in a Quanto derivative is the multiplier. The ADA and USDT value will change as the ADAUSDT and .BXBT prices change. Trade Expiry The ADAUSDTZ20 quanto futures price rises to 0.15000, let’s compute Jaewon and Wang’s Bitcoin PNL. Bitcoin PNL = (ADAUSDT Exit Price – ADAUSDT Entry Price) * Bitcoin Multiplier * # Contracts Jaewon Bitcoin PNL = (0.15000 - 0.10000) * 0.01 XBT * +100,000 = 50 XBT Profit Wang Bitcoin PNL = (0.15000 - 0.10000) * 0.01 XBT * -100,000 = 50 XBT Loss Notice that the only variable that affects the PNL is the movement of the ADAUSDT price.

On BitMEX, the ADA Futures Contract allows traders to speculate on the future value of the Cardano / Bitcoin (ADA/XBT) exchange rate. Traders need not have ADA to trade the futures contract as it only requires Bitcoin as margin.

ADA futures’ underlying is the ADA/XBT exchange rate as recorded in the .BADAXBT Index. The futures are quoted in Bitcoin and all margin and PNL calculations are denominated in Bitcoin.

Contract Calculations Multiplier 1 XBT Contract Value Multiplier * Futures Price * 1 ADA USD Contract Value XBT Contract Value * XBTUSD PnL Calculation # Contracts * Multiplier * (Exit Price - Entry Price)

All margin is posted in Bitcoin, that means traders can go long or short this contract using only Bitcoin. The ADA futures contracts feature a leverage of up to 20x.

For example, to buy 10 Bitcoin worth of contracts, you will only require 0.50 Bitcoin of Initial Margin.

The ADA futures contracts settle on the .BADAXBT30M Index Price.