bitmex Tether-Margined ETHPoW Listing

Just a few days ago in ETHPoW vs ETH2, the BitMEX research team explored the possibility of a chain split in Ethereum, which could lead to a new ETH proof-of-work (PoW) coin.

Fast forward a few days, and users are about to have a new way to trade – on ETHPoW, ETHPOWZ22 is scheduled to go live next week.

This will mean that when the Tether-(USDT ERC-20) margin contract goes live in a few days, users will be able to get the trading risk of ETHPOW – up to 2x leverage.

Now, ETHPOWZ22 is ready for the users to explore on the testnet.

To learn more about the new ETHPOW contract, keep reading.

ETHPoW Linear Futures Contract Specifications:

ETHPOWZ22 is a linear futures contract with USDT (ERC-20) as margin.

It works like a normal futures contract, but there are some key differences, you’ll find the details below.

Go to BitMEX’s Official Website

ETHPOW contract details:

  • Symbol: ETHPOWZ22
  • Due Date: December 30, 2022
  • Margin currency: USDT
  • Contract size: 0.00001 ETHPOW
  • Number of contracts: 1000
  • Minimum transaction amount: 0.01 ETHPOW
  • Underlying Asset: .BETHPOW
  • Maximum leverage: 2x
  • Provide liquidity rate: 0.00%
  • Withdrawal liquidity fee: 0.25%
  • Basic starting margin: 50.00%
  • Basic Maintenance Margin: 25.00%

Key differences from the other futures contracts:

  • Bidding method – final price
  • Price Limits – Limit Up and Limit Down, set hourly at +/-20% of the mark price.
  • Settlement Price – .BETHPOW30M
  • Auto Deleveraging – Enabled
  • Provide liquidity rate: 0.00%
  • Withdrawal liquidity fee: 0.25%

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This is a highly speculative contract (ETHPOW doesn’t exist yet, and probably never will).

Because of this, BitMEX has changed some items.

BitMEX uses the last price marker because ETHPOW does not yet have an observable price.

To protect the market from manipulation, BitMEX will use Limit Up and Limit Down prices, which are set hourly at +/- 20% of the mark price.

Traders will not be able to bid above the limit-up price, nor will they be able to bid below the limit-down price.

The .BETHPOW index will be constructed by BitMEX when it is possible to generate a robust index representing the spot price of the ETH proof-of-work coin.

Once such an index exists, BitMEX can change the marking method to fair price.

Before creating such an index, the value of .BETHPOW will be set to 0. If the index is not constructed by the expiration date, the settlement value will be 0.

As with all cryptocurrency derivatives contracts traded on BitMEX, automatic deleveraging is possible.

Since the contract is purely speculative (especially if ETHPOW does not yet exist), the possibility of automatic leverage is higher than for normal contracts.

BitMEX has also changed the fee for this contract to provide a liquidity rate deduction of 0 and a withdrawal liquidity rate of 25 basis points.

BitMEX will change these fees once it looks more like a “regular” futures contract.

Market maker discounts on BMEX will still apply.

The ETHPOWZ22 futures contract is now live on the testnet, along with full contract specifications.

Go to BitMEX’s Official Website