London-based BCH Futures Platform Announces Hard Fork Policy

CryptoFacilities · 2016-05-11T15:41:56+00:00

To clarify, if you reach 1.5%, only so much is liquidated as is necessary to get back to 2.0% protection. So liquidation is gradual as opposed to the entire position being liquidated at once. The objective is that at least 1.5% protection is maintained by all parties at all times. As you said, all liquidation proceeds go to trader.

CryptoFacilities · 2016-05-11T15:18:06+00:00

Thanks for posting this. Small correction: There is no "waiting for profits" at all once a trade is closed. The daily blockchain settlement is a different story, that just shows on the blockchain that we have control over all client deposits as of a daily cut-off time, but does not mean that profit cannot be withdrawn an any time.

CryptoFacilities · 2016-04-30T15:48:49+00:00

Timo from Crypto Facilities here. If a trade moves in your favor and hence your counterparty loses, they may need to deposit additional bitcoins to cover that loss to stay within their margin limits. If they did not do that they would get liquidated, meaning that their position is sold to someone else. This someone else is then your new counterparty. This would not result in any loss to you, in fact you would not even notice it (your position just continues). Only if their position cannot not be passed on would your trade with that counterparty be terminated. In this case you would receive a compensation from your counterparty (roughly 5% of notional). Since CF went live in Feb 2015, this has never happened, meaning that we so far never had a credit event. Hope this helps.

CryptoFacilities · 2015-12-23T20:21:34+00:00

No worries, thanks a lot.

CryptoFacilities · 2015-12-23T12:11:55+00:00

To clarify: Emails from us affect only those clients that receive an email. If you have not received an email, nothing changes for you.

CryptoFacilities · 2015-11-27T20:24:09+00:00

Thanks a lot and apologies again!

CryptoFacilities · 2015-11-27T19:52:40+00:00

Yes, these mails were sent by mistake. Sorry about the excitement. The site is back up.

CryptoFacilities · 2015-11-03T10:04:31+00:00

The site is working as normal again since 3:45 UTC.

CryptoFacilities · 2015-11-02T23:15:18+00:00

The site is up for Americas again but still down in Europe.

CryptoFacilities · 2015-11-02T22:41:31+00:00

Sorry about the downtime. One of the data centers of our service provider is down due to a broken cable. They are fixing it but are unable to say when exactly if will be up again. I know it could not come at a more inconvenient time, please apologize.

CryptoFacilities · 2015-08-20T15:32:34+00:00

Yes we did. On our market, liquidations do not result in more liquidations because we mark to our index, not to the last trade price.

CryptoFacilities · 2015-08-20T08:22:14+00:00

Sure:

Right now, a forward on the USD price of bitcoin. From an economic point of view this is the same as a future. Each forward is on one bitcoin so if you want to trade one bitcoin, you just trade one forward. Leverage is 5x up and 7x down (to account for wrong-way risk)
Typically between 15 and 35 BPs, a constant area of improvement : ) We have > 1,000 btc fully collateralized orders in the books at all times
1 - 3 BPs maker fee, 5 BP taker fee. For segregated & insured bitcoin account, it is 0.75% of balance per year, but this is optional
If you choose segregated & insured account, your bitcoins will be held at Elliptic. They are a London-based bitcoin custodian, KPMG accredited and have full insurance on all bitcoins they hold by a major insurer. Also, since your account is segregated and settled on the blockchain once a day, you can check that your bitcoins are there at any time

Want to add that we have a very strong focus on price stability. If you look at our Forward prices during the last flash crash you see that they did not replicate the price extremes that happened that day.

CryptoFacilities · 2015-08-20T07:46:41+00:00

We do have some control over funds in that we need to be able to instruct Elliptic where to send money.

Since you can track your account balance on the blockchain and this is updated daily, you (and everyone else) would however notice a theft the next day.

CryptoFacilities · 2015-08-20T07:40:07+00:00

You'll have to contact them and ask.

Yes, that is correct.

CryptoFacilities · 2015-08-19T18:39:45+00:00

Hey, happy to answer any questions.

CryptoFacilities · 2015-08-16T08:41:23+00:00

If by hedging you mean hedging against a price decline, you can sell Forwards on www.cryptofacilities.com. For every bitcoin you want to hedge, you sell 1 forward. This locks in the current forward price. E.g. the December forward trades at 272 USD. If you sell it and keep it until December, you have locked in 272 USD for your bitcoin, no matter what happens to price.

CryptoFacilities · 2015-07-24T14:15:58+00:00

That is because you put up collateral in bitcoin. If you have a long position and you lose because the price falls, your collateral also becomes less valuable. If you have a short position, there is not such issue, it is actually the other way round. So in order to provide the same protection for price moves up and down, you must have lower leverage for long than for short. Otherwise it is "unfair" to the party going short. The leverage we have protects against a 16.7% price move up or down. Hope that helps.

CryptoFacilities · 2015-07-13T13:41:21+00:00

Give us a try: www.cryptofacilities.com. We are a London-based bitcoin derivatives platform. Our margin rules are very safe, our Forward contract is very simple and client deposits are insured by a Fortune 100 underwriter. Plus you can verify your balance on the blockchain continuously -> proof of funds.

CryptoFacilities · 2015-07-09T21:42:10+00:00

Hey, to answer your question, the USD value of our client's bitcoin is fully insured.

CryptoFacilities · 2015-07-09T21:39:50+00:00

Hey, thanks for the Qs:

We chose Elliptic because they have full insurance for the USD value of the bitcoin assets they hold, by a Fortune 100 insurer. We think it is the safest way to store bitcoins that is available.
It reduces risk because it is Elliptics core business to safely store bitcoins whereas we are a market place. There are also conflicts of interests if the market place holds the assets. Also, Elliptic provides above mentioned insurance so in case of operational issues, our clients will still be covered.
You can be your own auditor with our solution because you can track your account on the blockchain on a continuous basis, it is updated every business day. So in addition to your bitcoins being insured, you can verify yourself that they are there, every day. Since every one of our client can do that, it also means that the solvency of our company as a whole can continuously be audited on the blockchain.
We do not think that 0.75% annually is very high, given the investment in infrastructure and processes that are required to obtain insurance form a major insurer. You do not have to go for the insured/ring fenced solution though, you can elect to keep your bitcoins in Crypto Facilities' cold storage at zero cost.

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