Kumex: KuCoin to Launch Bitcoin Derivatives and Futures Trading Platform
The founder of KuCoin exchange Michael Gun announced the upcoming debut of the Bitcoin contract on Kumex in the 2019 blockchain forum, Moscow. Later an official announcement was released via the KuMex twitter account. Kumex is an excellent and advanced derivative platform, with many innovations and improvements to create a fair trading environment and a lower threshold for investors.
What to Expect from the Derivative
It is aimed to make pricing fairer, and this is according to Kucoin. KuMex uses a bitcoin spot index that provides an average of the US dollar of Bitcoin across six exchanges, including Coinbase Pro, Bitstamp, Kraken, Gemini, Liquid, and Bittrex. It is quoted in USD, denominated in Bitcoin, and offers up to 20 times leverage. It is fully transparent, therefore, will offer protection from risks with an insurance fund. These funds will ensure that an investor forced to close their position will not lose money that exceeds their position margin.
KuMex has a fixed auto deleveraging system. It is in case insurance firm funds are insufficient to cover losses. It is also offering a lower investment threshold to encourage new investors.
“At the same time, KuMEX offers a negative fee for Makers at a rate of -0.025 %. It a certain amount of fixed commission, encouraging users to provide liquidity to the platform by making the market and earning some commission as an incentive.”
This information is as explained by KuCoin.
Details about its launch are yet to be revealed, but the information will be out when the service's start approaches. KuCoin has declared an alteration to its exchange center, which will affect areas as the market, orders, display, and order books. To inoculate this launch, KuCoin will initiate an in-house trade competition that is reward-based. There will be a designated 10,000 KCS token issued to the user as a reward concerning their return rate ranking. The contract will be based on a monthly period since future Bitcoin contracts are on the rise.