Bithumb Global Callable Bull/Bear Contract (CBBC) is a structured derivative and a leveraged investment product. It can track the performance of corresponding spot assets (such as BTC CBBC, which can help users obtain super-premium returns by tracing the price trend of BTC). Meanwhile, there is no forced recovery price, and it depends on natural maturity settlement.
Bithumb Global CBBC includes Bull Contract and Bear Contract, which targets corresponding spot assets. When long on the underlying assets, they can buy the related asset's Bull Contract with much less than the number of funds required to purchase the spot asset (conversely, if users are short on the underlying asset, they can buy the Bear Contract). Locking the current price of spot assets, and when the settlement is due, the higher the latest price of the spot assets (when users short on and buy a Bear Contract, the lower the price), and the more profits users will make. That is, Bithumb Global CBBC can help users obtain super-premium returns with low investment in spot assets.
About Exercise Price
Bithumb Global will take the corresponding spot asset's latest price when receiving the order submitted by the user as the order's exercise price.
About Settlement Price
Bithumb Global will take the average transaction price of the corresponding spot asset within the past 30 minutes when the user's order expires as the order's final settlement price.
About Order Cost
The cost of the order only includes the order's premium, and Bithumb Global does not charge transaction fees for the time being. The premium of the order will be deducted when the user successfully places the order.
About Profit Calculation
30min Bull Contract profit and loss = (settlement price-exercise price) × the amount of positions-premium
30min Bear Contract profit and loss = (exercise price-settlement price) × the amount of positions-premium
4H Bull Contract profit and loss = min[(settlement price-exercise price) × the amount of positions-premium, 5×premium-premium]
4H Bear Contract profit and loss = min[(exercise price-settlement price) × the amount of positions-premium, 5×premium-premium]
Regardless of the cost, there is no upper limit for the profit obtained of 30min CBBC, and the upper limit of the yield obtained of 4HCBBC is five times the premium be paid.
About How to Trade
When user A is long on BTC, the user selects the BTC4H and places an order with Buy Bull(bullish) (when the user is short on BTC, the user can place an order with Buy Bear). Assuming that when the order is successfully submitted, the BTC price is 30,000 USDT, then the order's exercise price is 30,000 USDT. Assuming that the average price of BTC in the last 30 minutes of the expiration of 4 hours is higher than 30,000 USDT (if a Buy Bear (bearish) order is placed, and the average price is less than 30,000 USDT). Regardless of the cost, the user makes profits, and Bithumb Global will distribute the earnings in USDT to the user at settlement.
Traders can only participate in Bithumb Global CBBC investment as a Buyer. Therefore, traders' margins will not be occupied, and there is no risk of liquidation. The maximum loss of the user is the premium paid at the time of the transaction.