INTRODUCTION

Currently, Bitcoin Perpetual Contracts have been made available. More product releases are in the pipeline. See announcements and subscribe to our newsletter for more news. 

The BitOrb Exchange has two user interface modes: Simple & Advance 

The Simple mode enables new users to be guided through the order making process. This mode may also be used by traders who wish to execute orders using a simpler interface that displays the order form, the chart and the active orders only. Entries using this mode are market orders. 

The Advance mode enables access to all the BitOrb trading tools which include the Orchestrator and the Dashboard-Indicator display. Entries using this mode can be in the form of market or limit orders. 

Contract Details

The BTC Perpetual Contract is a derivative product that is like traditional futures contract but with no expiry date. The contracts are quoted in USD and settled in BTC. 

  • Exchange Ticker Name: BTCUSD 
  • Contract Order Size: minimum USD 1, maximum size limited by risk engine 
  • Minimum Price Increment: USD 0.50 
  • Highest Price Entry Limit Order1.5x Mark Price 
  • Lowest Price Entry Limit Order: 0.5x Mark Price 
  • Funding Interval period is: 8 hours  
  • Funding Settlement Times:  

(UTC +8):    4am | 12noon | 8pm 

(UTC):         8pm | 4am | 12noon 

(EST):          4pm | 12midnight | 8am 

Contract Costs:

  1. Initial Margin is the amount of value required to open a position. This is calculated. 
  2. Maintenance Margin is the amount needed to hold a position. The Maintenance Margin Rate for BTC is set at 0.5%. 
  3. Funding is used to to anchor prices closer to the digital asset spot price.  

 

Minimum Price Increment 

0.5 USD 

Max Price 

1,000,000 

FEE STRUCTURE

The table displays examples of fees applied depending on orders placed in the BitOrb Exchange.  

Order Type 

Maker Commission 

Taker Fee* 

Market  

 

0.075 % 

Limit  

0.025 % 

 

Set Take Profit  

0.025 % 

 

Set Stop Loss 

 

0.075 % 

 

Using the Orchestrator with the order types above have the same commission and fee structure. 

*Do note that Taker Fee discounts apply in accordance to the number of ORBYT Tokens users hold and have registered in their respective exchange wallet. 

FUNDING RATE

Perpetual contracts on BitOrb are subject to Funding Rates. There is no settlement, and therefore do not incur a settlement fee. All calculations carried out in BitOrb are final. 

Series 

Leverage 

Max Long Funding Rate 

Max Short Funding Rate 

BTC Perpetual Contracts 

100x 

0.375% 

-0.375%  

 

Funding event occurs every 8 hours; 04:00, 12:00 and 20:00 hours (UTC +8). The Maximum Funding Rate ranges from -0.375% to 0.375%. The reason for this number is that it is 75% of the maintenance margin (0.75*0.5%) 

BitOrb sets 75% of maintenance margin (0.5%) to decrease the possibility of a liquidation event in the event of funding.  

Funding rate can be positive or negative based on the volatility of the underlying currency between the exchange and the index price.

1. If Funding Rate Is Positive:

The long position holder have to pay the short position holder by the value of the position hold at at point of time mutlipy by funding rate.  
The long position holder who pay the Funding is deducted from the Reserve of the position. The short position holder who receive the Funding is payed to Balance of the user. 

 

2. If Funding Rate Is Negative:

The short position holder have to pay the long position holder by the value of the position hold at at point of time mutlipy by funding rate. 

The short position holder who pay the Funding is deducted from the Reserve of the position. The long position holder who receive the Funding is payed to Balance of the user. 

Deposit

In order to trade in the BitOrb Exchange, please deposit Bitcoin ($BTC) into your exchange trading wallet. Bitcoin is the collateral for purchasing BTC perpetual contracts.

Currently, only BTC deposits are accepted. There is no minimum amount required and there is no deposit fee. 

Order Types

1. Limit Order 

Generally, Limit Order is for traders who are willing to queue for their orders to be filled waiting the Last Traded Price hits their order price. Once traders submit their limit order price which is needed to be specified, it will be placed in the Order Book to wait for their orders to be filled. For Buy Limit, we must set the order price lower than the Last Traded Price, meanwhile for the Sell Limit, set the order price higher than the Last Traded Price. 

2. Market Order

Market Order is for traders who want their orders to be executed immediately at the available price from the Order Book. Since it is Market Order, the order price is uncertain due to changes in price. Unlike Limit Order, the Order Price won’t take place in the Order Book. For this type of order, taker fee will be charged. 

3. Time in Force

The number of filled orders may differ depending on the time in force selected. There are three types of time in force: 

  1. Good Till Cancel allows to fill the position until fully executed unless traders cancel the order. 
  2. Immediate or Cancel allows to fill the position partially. Any unfilled contract will be canceled.
  3. Fill Or Kill allows the order to be filled immediately. No partial filled is allowed. 

Leverage

Leverage allows traders to open their position in a larger amount than their account balance. For example, if Chris uses collateral of 1 BTC, he can open up to 100 BTC worth of USD contract when he uses the leverage of 100x. 

Using higher leverage may be highly profitable but it can also be risky for traders since higher leverage leads you closer to liquidation price.  

Review your risk management when using leverage.  

MARGIN

1. Initial Margin

Initial Margin is the amount of value required to open a position. Let say you want to buy a contract value of 10,000 USD and use Leverage 100x. The amount needed for you to put is only 100 USD. For an example, Hugo wants to buy 3500 contracts at 7100 USD by using Leverage 10x. To calculate the initial margin 

Example: 

Initial Margin = Quantity/(Price x Leverage) 

= 3500/(7100 x 10) 

= 0.04929577 BTC 

2. Maintenance Margin

Maintenance Margin is the amount needed to hold a position. If the margin level of a position falls below Maintenance Margin, it will get liquidated. Maintenance Margin Rate for BTC is 0.5%. By using previous example, we calculate the Maintenance Margin 

Example: 

Maintenance margin = Quantity/Price x Maintenance Margin Rate  

= 3500/7100 x 0.5% 

= 0.00246479 BTC 

Once Hugo loses his positions below 0.5% , it triggers the liquidation engine. 

LIQUIDATION PRICE

Liquidation occurs when the margin level of a position hits the maintenance margin. Once it gets liquidated, we lost all the initial margin. The higher the leverage, the higher the liquidation price, the closer for the distance of the Mark Price to the Liquidation Price. 

To avoid getting liquidated, we can add margin to keep away Liquidation Price from Mark Price, or setting a Stop Loss between the Entry Price and Liquidation Price. 

Calculation of Liquidation Price 

Example 1: 

 Jay buys long at 7590 USD while using Leverage 30x. 

 Liquidation Price = ( Average Entry Price x Leverage ) / ( Leverage+1-(0.5% x Leverage)) 

( 7590 x 30 )/(30+1-(0.5% x 30)) 

= 7380.88 USD 

 

Example 2: 

 Kelly sells short at 6443 USD while using Leverage 15x. 

  Liquidation Price = ( Average Entry Price x Leverage ) / ( Leverage-1+(0.5% x Leverage)) 

( 6443 x 15 )/(15-1+(0.5% x 15)) 

= 6866.43 USD 

TRADING FORMULAS

The table below lists formulae and other important information for traders

Term 

How to calculate / What it means 

Units

Entry Price 

 

User input 

USD 

Index Mid 

 

Weighted price from several other exchanges 

 

 

USD 

Mark Price 

 

Index Price x (1 + Funding Basis) where Funding Basis = Funding Rate x (Time until Funding / Time Interval) 

USD 

Position Quantity (Qty) 

 

User input 

USD 

Position Value (aka Order Value on UI) 

 

Quantity / Entry Price 

BTC 

leverage 

 

User input 

Units 

Margin 

 

Position / Leverage = Quantity / (Entry Price x Leverage) 

BTC 

Unrealised Profit And Loss – PnL (gross) 

 

(Quantity / Entry Price) – (Quantity / Mark Price) 

 

 

Profit And Loss – PnL (gross) 

 

(Quantity / Entry Price) – (Quantity / Exit Price)  

BTC 

Fee 

Fee Rate x Quantity / Entry Price 

BTC 

Liquidation Price – LP (gross) 

 

Entry Price x Leverage / (1 + Leverage x 0.995) 

USD 

INDICES & PRICES

We index of a list of 6 exchanges based on a fixed percentage weight 

  • Kraken 
  • Bitstamp 
  • ITBIT 
  • Coinbase Pro 
  • Gemini 
  • Bittrex 

We get a weighted price using a formula, where factors are used to calculate the weightage of each exchange’s index price. 

Weightage = factor / total active factors 

We maintain the list of exchanges and weights in the database where 

  • The factors are updated from the database once a day to the exchange and used 
  • The factors from the database reads the latest values for the weights so we can update the database whenever the weights need to be changed 

BANKRUPTCY PRICE

Bankruptcy Price is the price where traders lost all the initial margin upon liquidation. 

INSURANCE FUND

The Insurance Fund is funded by order liquidations and is used as a buffer before Auto-DeLeveraging (ADL) is triggered. 

For example, Jo has a long position with Liquidation Price at 7500 USD and the Bankruptcy Price at 7450 USD. Once the Mark Price hits the Liquidation price, it will get liquidated. 

If the position closed at 7470 USD which is higher than 7450 USD, the remaining margin will transfer into the Insurance Fund. If the position closed at 7350 USD which is lower than 7450 USD, the Insurance Fund will cover the contract loss. 

For example, Lee has a short position with Liquidation Price at 6900 USD and the Bankruptcy Price at 7000 USD. Once the Mark Price hits the Liquidation price, it will get liquidated. 

If the position closed at 6950 USD which is lower than 7000 USD, the remaining margin will transfer into the Insurance Fund. If the position closed at 7050 USD which is higher than 7000 USD, Insurance Fund will cover the contract loss. 

ADL

ADL is designated to cover the contract loss that cannot be covered by Insurance Fund. That means ADL kicks in when there is liquidation and the insurance fund = 0. Traders with the highest profit and effective leverage use will be the highest-ranking and selected to deleverage first. The opposing order of selected trader will be deleveraged at the bankruptcy price of a liquidated position. Maker rebate will be paid to the ADL trader and taker fee will be paid by the liquidated position holder.  

For example, Fred has a long position of 10,000 contracts with Liquidation price at 7300 USD while Bankruptcy Price at 7150 USD. When the Mark Price hits the Liquidation Price, his position will get liquidated. Assume that there is insufficient balance in Insurance Fund to cover the Contract Loss, it triggered the ADL mechanism. 

WITHDRAWALS

Currently, withdrawals are processed everyday, once a day. Withdrawal requests must be made before @ 8am (UTC +8). Estimated time required for completion of all withdrawals is 1-2 hours. This is due mainly to the security procedures in place.  

There are no fees charged on deposits or withdrawals.  

Do note that when withdrawing Bitcoin, the minimum Bitcoin Network fee can vary depending on blockchain load. 

Digital Asset

Admin Fee

Custody Fees

Network Fee

Bitcoin (BTC)

0

Absorbed by BitOrb

0.0005

ABOUT BITORB

BitOrb is a cryptocurrency derivatives exchange that provides a platform for traders to buy and sell perpetual futures contracts. 

This means traders can profit from the price movement of BTC. So, if a trader buys Long contracts and the prices moves up, the trader can close his position by selling his contracts to gain more BTC  in return. If a trader has Short contracts and the price moves down, the trader would profit here as well. Popular cryptocurrencies such as BTC and ETH are used to purchase these contracts and are settled in these digital assets when the contracts are sold.

BitOrb was founded by Lim Hoong Tend (CEO), Jeremy Francis Fernandez (CTO) and Muhammad Umair (CMO) in the year 2018.

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