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FTT

FTX Token  

#FTT

FTT Price:
$24.49
Volume:
$62.3 M
All Time High:
$83.82
Market Cap:
$3.3 B


Circulating Supply:
133,618,095
Exchanges:
45
Total Supply:
329,487,431
Markets:
64
Max Supply:
Pairs:
41



  FTT PRICE


The price of #FTT today is $24.49 USD.

The lowest FTT price for this period was $0, the highest was $24.49, and the current live price for one FTT coin is $24.49082.

The all-time high FTT coin price was $83.82.

Use our custom price calculator to see the hypothetical price of FTT with market cap of BTC or other crypto coins.


  FTT OVERVIEW


The code for FTX Token is #FTT.

FTX Token is 3.1 years old.


  FTT MARKET CAP


The current market capitalization for FTX Token is $3,272,417,218.

FTX Token is ranked #22 out of all coins, by market cap (and other factors).


  FTT VOLUME


There is a large daily trading volume on #FTT.

Today's 24-hour trading volume across all exchanges for FTX Token is $62,271,922.


  FTT SUPPLY


The circulating supply of FTT is 133,618,095 coins, which is 41% of the total coin supply.


  FTT BLOCKCHAIN


FTT is a token on the Ethereum blockchain, and has digital contracts with 4 other blockchains.

See list of the FTT Blockchain contracts with 5 different blockchains.


  FTT EXCHANGES


FTT is integrated with many pairings with other cryptocurrencies and is listed on at least 45 crypto exchanges.

View #FTT trading pairs and crypto exchanges that currently support #FTT purchase.


  FTT RELATED


Note that there are multiple coins that share the code #FTT, and you can view them on our FTT disambiguation page.


  FTT RESOURCES


Websiteftx.com
Whitepaperdocs.google.com/document/d/1u5MOkENoWP8PGcjuoKqRkN...
TwitterFTX_Official
Redditr/FTX_Official
TelegramFTX_Official
Mediumftx
Instagramftx_official


  FTT DEVELOPER NEWS



How To Use Quant Zone To Automate Your Trading

Disclaimer: Please be very careful when building Quant Zone rules. A small mistake can lead to a large loss of funds as the QZ will continue to run every 15 seconds as long as the conditions set by the user are met, so be sure to double and triple check both the condition and the actions to ensure the QZ is coded to do exactly what you want. It is advised that after saving your QZ rule that you monitor its actions for a bit to make sure it is acting as intended. None of the following is trading advice, example trades are merely for illustrative purposes. Users should use the Quant Zone at their own risk.What is Quant Zone? The basics: QZ makes it very easy to build automated trading strategies allowing users to execute the most basic of strategies like scaling into/out of a position, to more complex strategies that would be hard to accomplish manually, such as basis trades, TWAPs, etc. Users can take advantage of this to decrease the amount of time and work needed to trade, to reduce slippage, and take advantage of opportunities 24/7/365. A QZ rule is made up of two parts, triggers and actions. The trigger is a condition, or set of conditions, that when met, trigger the QZ to execute the desired actions. When triggered, the QZ runs every ~15 seconds. The conditions can be a wide range of functions, like your position size on a given market or across your account as a whole; your account balance, available balance, or leverage; or the price of bitcoin, the spread between spot and futures, and much more. You can see a comprehensive list of possible functions here. After you create your condition, you will either see “Current value: true”, in which case that means the QZ will trigger under current conditions, or “Current value: false” which would mean under current conditions the QZ would not be triggered. The action is what the QZ does when the condition is met, and usually involves placing orders, opening or closing positions, or pausing/unpausing your QZ rule.Building a Futures Position: Choosing your trigger: First you need to decide what condition will trigger the QZ into action. For example, to build a position in a certain market you would need to choose the position function, the market you want to build your position in, and what size position you want. Let’s say you want to build a 10btc long position on BTC-1231, you would create the following condition for your trigger:position(“BTC-1231”) < 10 This means that any time your position size is less than 10btc, QZ will continue to execute the action. Once the position reaches 10btc, it would no longer execute. You can also define the position size for your trigger in terms of notional (USD) value. For example, if you wanted to open a $500,000 position, you would use the following condition:position_notional(“BTC-1231”)<500000 To build a position in a different market, just replace BTC-1231 with the desired market you would like to trade, e.g., ETH-0625, SRM-PERP, etc. The position variable always uses the quote currency (i.e., BTC, ETH, SRM) and position_notional always uses the USD value. Building an action with market orders: Now you need to decide what action you want QZ to execute when the above condition is triggered. As BTC-1231 isn’t quite as liquid as perps, you may want to execute smaller trades to build your position, so let’s set the action to the following: The above action means that as long as the condition you set above (position(“BTC-1231”)<10) is true, every 15 seconds QZ will submit a market buy order for 0.01btc on BTC-1231. At that rate, QZ would buy 2.4btc per hour, so it would take just over 4 hours to build your position to the desired size of 10btc. If you’d like to spread it out over a longer period, just reduce the order size (at 0.001btc it would take just under two days to build your desired position). When setting your quantity, you may want to check the contract specs for the market you’re trading to make sure the order size isn’t below the quantity step, as that would prevent any orders from being placed. Building an action with limit orders: Another option would be to use limit orders instead of market orders, allowing you to define your price, avoid any slippage, and the option of paying the lower maker fees as opposed to taker fees. The flipside, however, is that with limit orders your orders aren’t instantly filled as they are with market orders, so it may take longer to build your position. With a limit order, we have to determine more variables, namely what price we want to use for the order, and whether or not to keep the existing order open or cancel it and place a new order if one of your previous orders didn’t fill. We have a couple of options we can use to set the price of the limit order, namely “offer_price(“BTC-1231”)” and “bid_price(“BTC-1231”)” which would set the price to the best offer price or best bid price, respectively, at the time the action is triggered. This ensures that your price stays inline with the market as it moves. You can then add variables from there so that your price would end up just above the best bid, or just below the best offer. For example, the following would submit an order at $1 below the current best offer:offer_price(“BTC-1231”) — 1 And the following would submit an order at $1 above the current best bid:bid_price(“BTC-1231”) + 1 Of course you can decide what amount to change the order by, $1, $5, $10, etc, it’s up to you. Just make sure you’re abiding by the tick size of the market you’re trading as defined here, otherwise the system will round down to the nearest appropriate price (58000.5 would be rounded down to 58000). You can also set your offset in terms of percent. For example, if you wanted to submit an order 10bps (0.1%) above best bid, you could use the following:bid_price(“BTC-1231”) * 1.001 For 10bps below best offer, it would be:offer_price(“BTC-1231”) * 0.999 Now we need to decide what to do when our orders don’t fill; we have two options, keep the existing order open, or cancel it and place a new order. If we elect to keep the existing order open, the QZ won’t place any additional orders and will stop running until the existing order is filled. If we choose to cancel it and place a new order, the existing order will be canceled and a new order will be placed. The QZ runs every 15 seconds, so if you elect to cancel the existing order, your limit orders would have 15 seconds to fill before being canceled and replaced. As such, you may want to keep the price somewhat close to best offer when trying to buy and best bid when trying to sell to increase the chances of your orders executing. A setting you may want to enable when using limit orders is the post-only toggle, this ensures that your order doesn’t execute against any resting orders thereby guaranteeing you pay a maker fee and not a taker fee. If it was to execute against an existing order, your order would be canceled and placed again in the next QZ cycle (~15 seconds).Closing A Futures Position: To close a futures position, we’re basically just going to do the opposite of what we did to build the futures position, with one small variation: I want to change the condition to trigger when my position is above 0 instead of triggering when it is below 10 like in the above example. So in this case, my condition would be the following:position(“BTC-1231” , “buy” ) > 0 This means that as long as your long position size is above 0, i.e., you have an open position, the QZ will continue to trigger actions. As soon as your long position is closed, the QZ will cease to submit sell orders. Now for my action, instead of setting a limit buy or market buy like above, I would choose sell instead: One option you may want to use when closing a position, is to enable the reduce only toggle. This ensures that any orders submitted would only reduce your position, thereby preventing you from submitting an order that might flip you from long to short (e.g, if you have your order size at 0.1, and your existing position size is 0.05, if that sell order executed you would now be short 0.05btc, if the reduce only toggle was enabled, that order would not be submitted) Note that if you’re trying to close a short position, you would use the following condition, as the “sell” refers to a short position whereas the “buy” in the example above refers to a long position:position(“BTC-1231” , “sell” ) > 0Building a spot position: In addition to building futures positions, QZ can easily be used to build a position through spot markets as well. Your condition here would be based on your account balance, so let’s say you wanted to buy 10btc on BTC/USD, you would use the following condition:balance(“BTC”) < 10 This would instruct the QZ to trigger anytime your BTC balance was below 10btc. Similar to how we can choose notional size for futures positions, we can also choose to set our condition to buy until we hold a certain USD value of BTC. For example, if we wanted to hold $100,000 worth of BTC, we can use the following condition:balance(“BTC”) * price(“BTC/USD”) < 100000 This tells QZ that anytime your BTC holdings equal less than $100,000 to trigger the action. The actions would be the same as above, except we would buy on the BTC/USD market, for example: So using the parameters as defined above, anytime your BTC balance is worth less than $100,000 the QZ will place a market buy order for 0.01btc.Converting profits from USD to BTC: Something we’ve received a lot of requests for is BTC based pnl, and while this isn’t a perfect solution, an easy way to convert USD profits to BTC is through QZ. To accomplish this, you’ll want to use the same function as before, but for USD. So your condition would look like this:balance(“USD”) > 50000 The above function would instruct QZ to trigger anytime your USD balance is above $50,000. You may want to set the value above 0 to prevent your USD balance going negative on any small move against your futures positions, thereby requiring you to borrow USD. For the action, I can have QZ submit limit or market orders similar to the examples above.Executing a basis trade: A basis trade is a trade in which you profit off the difference between the spot price and futures/perp price by buying/selling on futures/perps and executing a trade in the opposite direction on spot (e.g., sell futures, buy spot). For perpetual markets, this allows you to collect funding and on dated futures products this allows you to capture the premium/discount. For this example I’ll explain how to do this on the perpetual markets. First, you want to decide at what premium you want to enter your basis trade. For example, maybe you don’t want to tie up your capital if the premium is only 10bps (~36.5% annualized), but if the premium was 20bps (~73% annualized) then you would want to execute a basis trade. Then you need to decide how big of a position you want for this basis trade. For this example, we’ll use 1btc. Your condition would then look like this:(premium(“BTC-PERP”) > 1.002) and (position(“BTC-PERP”, “sell”) < 1) This is saying that if the premium of BTC-PERP to the BTC Index is over 0.2% AND the total position size of your BTC-PERP short is less than 1, the QZ should trigger into action. If either the premium dips below 20bps or your position size reaches 1btc the QZ will no longer run. For this QZ rule, you’ll need two actions to make sure your basis position is hedged, one action for selling BTC-PERP and one action for buying BTC/USD. For this example I’ll be using market orders to ensure that both my futures and spot orders get executed, because with limit orders you might have a situation where one leg of the trade gets executed but the other doesn’t, leaving you unhedged (i.e., if your perp sell order is filled, but your spot buy order isn’t, if the price goes up you’d be losing money on the short without gaining that money back through spot holdings). Next you’ll need to make another rule to close out your basis trade position in case the premium goes away or even against you. To do this, create another QZ rule. For the condition, I need to choose at what premium I want to start unwinding my position. For this example I’ll use 2.5bps. So my condition would look like this:(premium(“BTC-PERP”) < 1.00025) and (position(“BTC-PERP”, “sell”) > 0) So as long as the premium is less than 0.025% and I still have an open short position on the perps, I will want the QZ to trigger my actions to close out the position. My actions are going to be the same as when I opened it, just in reverse this time (buy perps, sell spot) One thing to be cognizant of as you’re using market orders here is to ensure that the funding payments you’ll receive is more than the trading fees, as you’re making 4 separate trades on this position (entry on spot, entry on futures, exit on spot, exit on futures), so this isn’t necessarily a trade that under normal circumstances you’d want to move into with a short time horizon (e.g., if funding is paying 20bps an hour and your trading fees are 5bps taker, if you only hold the position for one hour and receive 1hr worth or funding payments, your trading fees and amount gained from collecting fund would cancel out). As such, you might want to have a decent spread between what premium you’d enter into the position and which premium you will exit the position to prevent excessive entry/exit of positions incurring more trading fees. Another option to prevent excessive trading due to small variances in the perp premium/discount to index is adding another action to my close basis trade rule that would pause the open basis trade rule for a set period of time. Such as this: With the above rule, anytime my close basis trade condition is met, it would pause the open basis trade rule for 1 day. That prevents a scenario where in volatile markets, the premium might dip triggering my QZ rule to start closing my basis position, then shortly thereafter increase again triggering my QZ rule to start opening/increasing my basis position, then dips again causing it to start closing, etc… This would result in excessive trades being made, so by pausing the open basis rule whenever the close basis rule is triggered, you would prevent that scenario from occurring. You should double check before doing this trade is the quantity step for the markets that you’re trading, they may vary between the futures and spot market. Lastly, you should note that QZ function “premium(“BTC-PERP”)” is the current premium of BTC-PERP to BTC Index, it is not equivalent to and is much more volatile than the expected funding rate which is based on a TWAP (i.e., average) of the premium over the last hour. So momentary dips in the premium could trigger your QZ function to close your basis trade, even if the expected funding rate was above your defined threshold.Safeguard rules: As mentioned at the top of this article, you need to be extremely cautious when using the Quant Zone as it will execute any action you construct as long as the condition you set is met, regardless of whether or not the action is what you intended to build, or the condition is what you intended it to be. In light of this, you may want to make use of a couple safeguards and regularly check your account when QZ rules are enabled. To build these, we need to create a new rule and determine some boundaries that your QZ rules were intended to stay within. For example, in my basis trade above, I set the condition to stop triggering if my btc position exceeded 1btc, so if due to some error on my part when building the rule I ended up with a 2btc short, I know something is wrong with the rule and I want to pause the rule before any more damage is done. But remember, I’m also buying spot with my basis trade, so I might want to add a protection for that condition as well, so I could set the condition as:(position(“BTC-PERP”, “sell”)) > 2 or balance(“BTC”) > 2 And for action I would choose the following: This means that if either my BTC-PERP short position ever exceeded 2btc, or my BTC balance ever exceeded 2btc, I want QZ to pause my rule for opening the basis position for 1 day preventing any more unintended trades to be executed. You can make safeguards for all kinds of scenarios, such as if you’re building a position but meanwhile the market moves against you increasing your leverage beyond desired levels, you could create a rule with the following condition:Leverage > 10 Set your action to “pause rule”, choose a specific rule you would like it to pause and QZ will stop executing that rule if your leverage ever exceeds 10x. You can also elect to pause all rules if your condition is met. Or say you never want to have more than $100,000 worth of positions, you could use the following condition:total_position_size > 100000 There are many other conditions you can use (margin fraction, approximate distance from liquidation, or simply total account collateral) to trigger a safeguard. It’s wise to consider putting some in place while testing out the Quant Zone and familiarizing yourself with how it works to avoid rules executing beyond what you intended. You can see a complete list of possible functions here.More: If you like this article and are interested in more articles on how to use the QZ to deploy trading strategies, please let us know You can read more about Quant Zone in the FAQ on our Help Desk. Examples for more complicated QZ rules (TWAP, EMA, SMA crossover, range trading strategies) can be found here If you have any questions on the above, don’t hesitate to reach out and ask questions.




The FTX Foundation for Charitable Giving

FTX has grown tremendously this past year. Our daily volume is averaging $5b, our userbase has grown, and this week we unveiled trading on Blockfolio. Those are just the start; there’s a ton of big things on the horizon. We are pretty happy with how things have been going in 2021, both for us and for the crypto community as a whole. It’s important in times like these, though, to never lose sight of the fact that revenue and expansion can only ever be step one of a two-step plan; they are not ends in and of themselves. FTX was founded with the goal of having the largest possible positive impact on the world. That’s why, since the beginning of 2020, the exchange, its affiliates, and its employees have donated tens of millions of dollars to charitable causes, with some among us having pledged to donate the majority of what we make here. We’re proud of that, and we want to do more of it in the years to come. But as we’ve had more discussions around this topic, we’ve come to realize that something has been missing. It’s a cliché, but we couldn’t have done any of this without you, the users; no company can go without its customers, of course, but the phrase is doubly true in any situation where network effects are at play. And so it feels right that you have a say in where our collective donations go. That’s why we’ve started the FTX Foundation. Its mission is the same as our mission: to make the world not just a better place, but the best place we can, by thinking hard about where our Dogecoins can do the most good. But we are starting the FTX Foundation with the additional promise that FTX’s users will have a meaningful say in directing its funds. Money is the unit of caring, and all of us in the community care about cryptocurrencies and better financial systems. What else do we care about? What else should we care about? Tell us; we want to know. We’re excited to see what other perspectives the wider crypto community brings to the challenges our world faces: from global poverty to climate change to existential or catastrophic risks (did somebody say “pandemic”?) to anything else that gets great impact per satoshi. A lot about the FTX Foundation is still up in the air. We want everybody in the crypto community to be able to express their opinions about where the Foundation should donate, but we also don’t want to give lots of votes to sockpuppet accounts. That’s why, for the time being, our plan is to use the same voting system that we use for letting users choose which tokenized stocks to list next. As for what users are voting on, we’ll start by offering a few options that we think are great, and we’ll be listening for feedback on what’s missing and what users would like to see. Our most important priority here is that all our users feel like they have a say in where the Foundation donates. How much money will the Foundation receive? That’s also up in the air — but as a start, we’re pledging to allocate 1% of FTX’s revenue from fees to the FTX Foundation. You’ll be able to see the amount pledged tick up in real time. We hope you’ll find it as exciting as we do, to make the progress we make, together, towards step 2 of our two-step plan.




Effective Altruism: Giving in Crypto

Join us on December 22nd at 5PM PST (01:00 UTC, 09:00 SG/HK) as the CEO of FTX, Sam Bankman-Fried, Founder of Ethereum, Vitalik Buterin, and Managing Partner at Dragonfly Capital, Haseeb Qureshi will be getting together before the holidays to share their views on giving in crypto, Effective Altruism, and their work in the space. In the spirit of giving, Sam, Vitalik and Haseeb will each be personally donating $50,000 to a charity of the community’s choosing. They have each selected one of their favorite charities, and will let Twitter vote which charity will be the recipient of the pooled $150,000 donation. Follow us on Twitter so you don’t miss the poll! At December 22nd at 5PM PST (01:00 UTC, 09:00 SG/HK), the Twitter poll will be finalized, and the panelists will make their donations to the winning charity to kick off the event. In addition, we welcome you to donate with us to these charities and will have a link to donate on the event’s page. It’s been a great year for the crypto industry. In the midst of celebrating all-time highs, it’s important that we as a community do our part and pay it forward. Sam, Vitalik, and Haseeb all organize their giving according to the philosophy of effective altruism. Effective altruism is an impact-focused approach to charity, using high-quality evidence and rigorous reasoning to determine how to improve the world as much as possible. It is also a community of people taking these questions seriously, by focusing on the most promising solutions to the world’s most pressing problems. Sam Bankman Fried started his career at Jane Street in 2014 with the aim of donating six figures a year. He then went on to found Alameda Research and FTX with the goal of donating the money earned to the world’s most effective charities. FTX, its affiliates, and its employees have donated over $10M to help save lives, prevent suffering, and ensure a brighter future. He works closely with Effective Altruism, Give Well, The Human League, and Open AI. Sam’s chosen charity is the Nuclear Threat Initiative (earmarking for Biosecurity). The Nuclear Threat Initiative works to reduce long-term threats from nuclear, biological, and chemical weapons by developing solutions, raising awareness, and educating governments and world leaders. Vitalik Buterin is the cofounder of Ethereum and was an early adopter of Bitcoin and cryptocurrencies. He has written extensively about donating to charities and became an active donor starting in 2018. Vitalik’s chosen charity is the SENS Foundation. The SENS Foundation develops and promotes therapies that combat aging and aging-related diseases. The SENS Foundation is redefining the way the world researches and treats age-related ill health, with the long-term goal of finding disruptive research projects to mitigate or reverse senescence. Haseeb Qureshi is a managing partner at Dragonfly Capital, a global crypto VC fund. He has been “earning-to-give” since 2015 and donates 33% of his pre-tax income to high-impact charities each year. Haseeb’s chosen charity is the Against Malaria Foundation. The Against Malaria Foundation is a global charity that provides insecticidal nets to populations at high risk of malaria, primarily in Africa. The Against Malaria Foundation has been ranked one of the most cost-effective Givewell charities since 2015, and is estimated to save a life for every ~$4000 donated. Follow us here @Effect_Altruism and get involved!




FTX gets a new look

We’ve had a lot of exciting new developments at FTX in the past few months. From stock trading to increased capacity for load to prediction markets to spot margin, we’ve heard what features the crypto community wants from an exchange, and we’ve listened. But while our products and features have evolved quickly, our user interface hasn’t changed much since we launched… Until today. We’re launching a new and improved version of the FTX site — all the products and functionality you’ve come to expect, but with a sleek new feel and easier access to the most important trading features. Just a few highlights:A collapsible side panel that shows all of FTX’s markets from any part of the site — searchable, filterable, and customizableTools for switching between, creating, and managing sub-accounts pages to make trading with multiple strategy easier than everTradingView chart settings that auto-save between usesMore natural layout customization: dragging, resizing, and rearranging that clicks into placeExecution information as you hover order the order-book: average price and cumulative size…and a bunch of other improvements Check it out! Be on the lookout for more from us — new products, features, and UI improvements are on their way. Reach out with any issues or ideas at feedback@ftx.com — we’d love to hear from you!




Introducing Spot Margin Trading on FTX

A surprisingly large number of us come from a trading background. And as traders, we think a lot about capital efficiency and liquidity. This is reflected in some of the fundamental decision on the platform including subaccount-wide cross-margining system and easy ways to access leverage. Today we’re introducing spot margins which allows users to borrow additional funds for trading. Previously, when using FTX for spot markets, you must have adequate balances in the quote currency to exchange for the base currency. So if you had $10 in your account, you could only buy crypto worth upto $10 in the spot market. But what if you wanted to enter into a short position? Or you felt that a particular asset would 🚀 and wanted to take a more aggressive position? Now, so long as you hold sufficient collateral you may be able to enter those trades. But who are you borrowing the funds from and how much? When you open a margin position, you’re extended funds to cover the entire value of your trade. So, if you have $10 as collateral and buy Bitcoin worth $50, you’d be borrowing additional $40 (position would be $50 in BTC and -$40 USD). And these funds are coming from your peers on the platform who’ve decided to lend out their USD. And so correspondingly, we’re launching a platform whereby you can elect to lend your assets. For example, if you’ve got BTC that you want to hodl, you can decide to lend it on FTX to get yield from your holding. You can read more details here: https://help.ftx.com/hc/en-us/articles/360053007671-Spot-Margin-Trading-Explainer Visit: https://ftx.com/spot-margin/borrows to get started.




FTX Global Volume Report

Today we’re releasing our investigation into cryptocurrency volume on exchanges around the world. To see our live-updating results, visit. CoinMarketCap has taken steps to identify fake volume, but there are still more to take. Studies like the one conducted by Bitwise Asset Management come up short in the other direction, filtering out too much real volume. Alameda Research, a global liquidity provider and our partner in this investigation, has the expertise required to draw a meaningful line between real and fake crypto volume. This report is accompanied by an in-depth paper that documents our methodology and analysis, where you can dive into our criteria, scoring method, and results. You can also read the article Forbes wrote about the report. Our goal is to provide FTX customers with more accurate data in order to make more informed decisions. We’re excited for the crypto community to use this report to navigate our cluttered ecosystem. Check out our volume report




Margin Vs Futures

Let’s say you own 100 BTC and you want to hedge them. You have two options: short sell 100 BTC/USD on an exchange with margin trading, or sell 100 BTC futures. Which is better?Arguments for Margin Margin trading has two great properties. The first is fungibility. Let’s say you own 100 BTC on Coinbase and hedge it by shorting 100 BTC/USD on margin on Kraken at a price of $8,000. You can then send your 100 BTC over from Coinbase to Kraken, and immediately settle. Because your short position is literally a BTC short, you can combine your 100 BTC long with your {100 BTC short, $800k long} together to generate 800,000 US dollars, and then withdraw those dollars. You could then send those US dollars back to Coinbase and buy back your BTC, successfully completing an arbitrage in a day or less. On the other hand, let’s say you shorted 100 BTC futures on BitMEX (say the June expiring quarterly futures) to hedge your Coinbase BTC. Sure, you can send your BTC over to BitMEX to use as collateral for your BTC futures short position, but you can’t then settle the position and withdraw any USD. The BitMEX BTC futures don’t really become fungible with real, physical bitcoins until the expiration date at the end of the quarter. This means that while you can close down a margin hedge in a day, it often takes months to close down a futures position, and your 100 BTC of capital is tied up the entire time. The second large advantage of margin trading is no premium. Because you can complete an arbitrage cycle between spot BTC and margin BTC in a day, any large pricing discrepancy between a spot and margin BTC/USD exchange could be closed and would only tie up capital for 24 hours. So even though Kraken has BTC/USD margin trading, it generally trades at almost exactly the same price as BTC/USD on Coinbase. This means that, with margin trading, you are given leverage on a market that trades at exactly the same price as spot; you don’t have to worry about losing money to premia! Futures, on the other hand, can trade at large premia. Because it can take 3 months to unlock capital from a futures trade, nothing forces futures contracts to trade at the same price as spot, and in fact they don’t. If you sell BTC June futures on Deribit right now, you’re losing about 0.10% versus selling spot BTC.Arguments for Futures This makes it seem like margin is just better than futures. All the same leverage, but added fungibility and pricing certainty! But there’s a catch. After you short sold the BTC on Kraken but before you sent over your BTC from Coinbase, you’d just sold BTC you didn’t own (at least not on the platform). If the person you sold the 100 BTC to tried to withdraw, they’re stuck — there’s no BTC there to withdraw! Similarly, if the ‘USD’ you got from shorting BTC came from someone going long, maybe the USD doesn’t actually exist on the platform either, and so you can’t withdraw it. All of a sudden this whole fungibility argument starts breaking down if you aren’t actually able to withdraw your proceeds. The key thing here is that margin trading relies on borrows. In order to sell my 100 BTC, I had to first borrow those bitcoins from someone else on Kraken; then if the person I sold to tried to withdraw the BTC, they could withdraw the lender’s 100 BTC instead. But now the lender’s 100 BTC is locked up for as long as it takes me to settle my trade. There’s no free lunch here. If you want a leveraged trade to be fungible on your end it has to be fungible on the other end as well; if you want them to settle you also have to be able to settle. But the only reason you use leverage is because you can’t settle! So in order to have it both ways you need to recruit a third person to the trade who spots you the physical assets (BTC in this case) to facilitate settlement, and now they’re stuck without access to their capital until you actually deposit your 100 BTC. The lender probably won’t let you borrow their capital for free. And so if you want to trade but can’t fully settle your side of the trade, your options are: a) Trade futures, and you can’t get delivery for months. b) Trade spot margin; you can get delivery, but in return you have to pay someone to settle your side for you. And so if you want to short sell 10,000 BTC at once on spot margin you both have to find someone willing to lend you 10,000 BTC, and pay them for it; and that might not be cheap. Futures, on the other hand, don’t require borrows because no one is expected to deliver until expiration. And so just as you don’t get what you bought, you don’t have to deliver — or borrow — what you sold.Which should you use? In the end it really depends on your particular situation, and the exchanges involved. Here are the questions we run through to evaluate an exchange when we’re using leverage: For spot margin trading:How much size do we need to trade, and can we actually get a borrow for that size on the platform?How much interest are we going to be paying on the borrow?Do we actually need delivery of the other side?How long will we need to keep the position open for? For futures trading:How liquid are the futures contracts, and how much might we move the premium?Are we paying premium or getting paid premium?Are we worried about massive liquidity failures and liquidations on the platform?When do the futures expire?How does FTX fit into this? FTX offers two types of products: quarterly futures and perpetual futures. Quarterly futures are your friend if you don’t need fungibility or want to hold a position for a long time. The order books are extremely liquid, you won’t have to deliver anything, and there are no other payments. The perpetual futures are great for trades you expect to unwind soon. Because of the funding payments, their pricing tracks spot BTC prices closely, making trading them close to trading spot on margin. Finally, leveraged tokens allow you to target an exposure to the market without having to micromanage your margin or collateral.




FTX Liquidation Process Flow Chart

FTX Liquidation Process FlowchartNormal Trading Say some account A deposits $1m of collateral to buy $5m of BTC futures. They are currently 5x leveraged, and a 20% BTC move away from bankruptcy. They can trade normally. Account A: Position: long $5m Assets: $1m Leverage: 5x Distance from bankruptcy: 20%.Orderly Liquidation Now say that BTC drops 11%. A has dropped below Initial Margin Fraction (10%) and can no longer send orders. Account A Position: long $5m Assets: $450k Leverage:11x Distance from bankruptcy: 9%. Cannot Send Orders Now say that BTC drops another 5.5%, or 16.5% total. Account A has dropped below Maintenance Margin Fraction (4%). Liquidation orders are being sent to the market to sell account A’s BTC futures. Account A Position: long $5m Assets: $175k Leverage: 29x Distance from bankruptcy:3.5%. Liquidation Orders Sent Now say BTC drops another 2%, or 18.5% total. Account A has dropped below Auto Close Margin Fraction (2%). The account’s entire position and balances are being sold to the Backstop Liquidity Providers and Insurance Fund. Account A Position: long $5m Assets: $75k Leverage: 67x Distance from bankruptcy:1.5%. Auto Closing Against BackstopsPrice Gap Finally, say that instead of the above, BTC gaps down 20.5% total, fast enough that FTX has not liquidated any of its position yet. Account A is now beyond bankrupt. Account A Position: long $5m Assets: -$25K Leverage: N/A Distance from bankruptcy: -0.5%. Auto Closing Against Backstops Insurance Fund Paying Out




Our Liquidation Engine — how we significantly reduced the likelihood of clawbacks from ever…

Our Liquidation Engine — how we significantly reduced the likelihood of clawbacks from ever occurring You can see the specs here. You can also see a flowchart of the liquidation process here. It’s first worth making explicit: the thing that causes socialized losses, and clawbacks, and auto-delevering, is when an account goes beyond bankrupt. If a user has a leveraged futures position on and markets move against their account enough that their net asset value is negative, then someone has to pay for that loss; and in crypto you can’t reposses assets from the bankrupt account’s owner from outside the system, so you’re stuck with other users — the users who aren’t getting liquidated — footing the bill. Like most liquidation engines, the one FTX uses starts by detecting when a user has dropped below maintenance margin. Unlike many other platforms it chooses intelligent, efficient values for these — some other platforms, like OKEx, are fucked by the time a liquidation starts because their maintenance margin was too low and there is no way for them to liquidate such a large position so quickly. We send reasonable, volume-limited liquidation orders to close down positions that drop below maintenance margin (which starts at 4.5% and increases with position size). We don’t sell so quickly that the liquidation orders themselves will crash the market; that would be dooming the entire process. We also don’t give up if the price looks ‘bad’ — it might only get worse from there and you have to do the best you can liquidating an account rather than hoping things magically reverse (as OKEx does). Usually this is enough. But if there’s a large liquidation — say a long position (position B) that needs to get sold off — and markets are moving down too quickly, it might become clear that the normal liquidation orders in FTX’s orderbooks are unlikely to successfully close down position B before the account goes bankrupt. In that case, the backstop liquidity provider system kicks in. In this situation, liquidity providers who have opted in to the system will internalize position B, taking over the whole obligation and collateral. They’ll do this before the account actually goes bankrupt so they have a chance to successfully manage the position. They will then go hedge their books on other venues. This effectively allows the backstop liquidity providers to instantly inject liquidity from other exchanges into FTX in an emergency, removing the dangerous account’s position from FTX’s books and preventing a likely bankrupcy. It’s worth noting here the difference between the role that an insurance fund plays from the role that a liquidity provider plays. If someone has a long $200m BTC position that’s bankrupt you can try to pay for it’s net losses out of an insurance fund. But if that’s all you have, it doesn’t fix the problem that the user still has that $200m position — and so if markets keep moving the insurance fund will just keep losing more and more and more. The way to actually end a liquidation is for someone to take that position of the client’s hands — that is someone to actually take on the long $200m of BTC exposure. In this way the backstop liquidity provider program solves a problem that no insurance fund can solve, no matter how large. Hopefully, the backstop liquidity provider program will be enough to prevent any clawbacks from occurring. In our testing, even market moves of 40% in a 20 minute period were not enough to cause clawbacks; the combination of on-exchange liquidity and backstop liquidity providers were able to provide to all of the nearly bankrupt accounts before they went under. In fact the insurance fund actually gained about $1m in most of these scenarios. But there needs to be a worst case scenario. And if all else fails, FTX will do what other exchanges do — it will auto-delever an account’s position against accounts that have the opposite position on, and attempt to cover any losses out of the insurance fund; and if the insurance fund runs dry then there will be clawbacks. But FTX really does see clawbacks as a worst case scenario that we hope never happens. We designed a system that we think will withstand huge market moves and huge volume without leading to any clawbacks. And if there’s ever a clawback on FTX, we fucked up. We will apologize, write a detailed post explaining the mistakes we made to get the market to the point that clawbacks were necessary, and issue IOUs against future insurance fund increases for any shortfall. Because that’s what should happen if an exchange loses customers’ money, even if it’s far from the norm right now. Anyway — that’s the FTX manifesto on liquidations. How are our competitors doing? We’d like to start by explicitly saying that all things considered BitMEX has done a good job at preventing clawbacks. There are occasional auto-deleveragings and socialized losses on the illiquid altcoin contracts but they’re rare and the BTC perpetual swaps — the one really liquid product on BitMEX — virtually never sees them. But OKEx is in a pretty bad state. There was a well-publicized $9m clawback on July 31st 2018. Quoting from OKEx’s official blog post on the incident:OKEx saw this as business as usual: “OKEx has adopted the societal loss risk management mechanism since launched and it has been working orderly as intended.”OKEx’s attempt to address the situation: “Our risk management team immediately contacted the client, requesting the client several times to partially close the positions to reduce the overall market risks. However, the client refused to cooperate…”If OKEx was not going to be able to handle the order why did they let the client place it? OKEx’s risk systems are woefully inadequate.“Shortly after this preemptive action, unfortunately, the BTC price tumbled, causing the liquidation of the account.”OKEx seems not to be fully aware of why the BTC price tumbled. “Unfortunate” is one way of putting it; “in response to OKEx manually placing a $400m liquidation offer and hoping against hope someone would trade against it — but instead seeing the market update on the expected impact of the order” is another. OKEx caused the move that caused the clawback.“We will implement a series of risk management enhancements, which are in line with our futures roadmap released on July 17, 2018, to prevent any similar cases from occurring again.” So how has this new framework done?On 2018–11–23 OKEx clawed back 50% of profit from ETC futures, or over $1m.On 2018–09–07, OKEx clawed back 18% of profit from EOS futures, or over $3m.OKEx’s BSV futures went through a 6 week stretch from 2018–12–28 to 2019–02–01 where the average clawback was 42%.The now-delisted OKEx BTG futures went through periods of having over 80% clawbacks each week — meaning that nearly the entire trading in the futures was someone going bankrupt!And, infamously, a few days before the BCH fork OKEx emergency settled their futures early — without notice — to a marked to market price in a downlimit future trading against the wrong index, leading to roughly $20m of losses.Huobi’s product, HBDM, has not yet had clawbacks — to their credit. But their product is only a month old; and given that the product was copy-pasted from OKEx’s, it should not be expected to withstand the test of time. You can see our specs here. You can also see a flowchart of our liquidation process here.




  FTT NEWS


FTX (FTT) Token Flashes Buy Ahead Of A Rally, Will $35 Be Reclaimed

    The FTX (FTT) token has had a difficult time, but it has recently flashed a buy signal, indicating that the price is poised to rise against tether (USDT). The crypto market's early week saw altcoin prices surge as most coins rallied with significant price gains, with the FTX (FTT) token poised to make a relief bounce. (Data from Binance) FTX (FTT) Token Price Analysis On The Weekly Chart  Weekly FTT Price Chart | Source: FTTUSDT On Tradingview.com The price of FTX has struggled to maintain its bullish momentum in recent months, as it was rejected from the $54 area, acting as a supply zone for most sellers. Despite being a fundamentally strong coin of the FTX exchange and growing sentiment on its movement, FTT has struggled to recapture the bullish momentum it experienced. Nonetheless, FTT has reached a weekly low of $24. The price of FTT on the weekly chart needs to break out with good volume for the price to have a good chance of trading higher. FTT must break and hold above the resistance at $30 to form a support for the price of FTT to move to a higher height, as the $30 mark is preventing FTT from trending higher. If the price of FTT fails to break through this resistance region, we may see the price retest the lower weekly region of $24, which could act as a good buy zone to push the price of FTT higher and hold the sell-off. Weekly resistance for the price of FTT - $30. Weekly support for the price of FTT - $24. Price Analysis Of FTT On The Daily (1D) Chart Daily ... read More



MoonXBT adds new USDT spot markets in DAI, ADA, AVAX,  LTC, FTT, LI...

    MoonXBT, a crypto derivatives & social trading platform, has now announced it has successfully launched new USDT spot trading pairs in the following markets: DAI/USDT, ADA/USDT, AVAX/USDT, LTC/USDT, FTT/USDT, LINK/USDT, and FTM/USDT. The crypto margin trading platform offers up to 150x leverage and recently integrated fiat-gateway XanPool, to allow for easy deposits. The post MoonXBT adds new USDT spot markets in DAI, ADA, AVAX,  LTC, FTT, LINK, and FTM appeared first on CryptoNinjas. read More



21Shares Lists Decentraland and FTX Token ETPs on BX Swiss

    The world's largest issuer of crypto ETP's 21Shares announced two new ETPs - tracking the performance of Decentraland and FTT. Both products will go live on the Swiss exchange - BX Swiss. The exchange-traded products (ETPs) will allow traders and institutions to get exposure to the two assets without owning them outright. 21Shares Decentraland ETP (Mana) and 21Shares FTX Token ETP (AFTT) will be listed on BX Swiss, a Swiss stock exchange. Decentraland (MANA) is a native token of the metaverse game by the same name. FTT, on the other hand, is the native cryptocurrency of the FTX exchange. CEO and co-founder Hany Rashwan called the move a key milestone for the company as it aims to continue expanding its services. Most recently, the firm launched ETPs tracking Aave, Chainlink, and Uniswap on the same Swiss exchange. 'Adding the worlds’ first NFT and single Metaverse ETP and one of the world's leading crypto exchanges to our product suite is a key milestone for us in making crypto accessible for everyone.' - Rashwan explained. Decentraland is one of the largest metaverse gaming projects so far. Its token (MANA) allows users to access in-game features, including buying land. So far, some $180 million worth of digital land was sold in-game. FTX is one of the largest crypto exchanges that signed numerous impressive partnerships in the past year or so. Its FTT token enables clients to stake it and get trading fee discounts as well as participate in governance. 21Shares is a... read More



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