Bitcoin derivatives trading go live in public beta on KuCoin

KuCoin cryptocurrency exchange, currently backed by IDG has announced the launch of a platform that will offer Bitcoin derivatives trading. The trading will take place on a newly built platform referred to as KuMEX. The platform is already live in public beta with the first Bitcoin perpetual contract being XBTUSDM. The contract is quoted in U.S. dollars and has a leverage of up to 20x.

According to the announcement, KuCoin was focusing on making the pricing “more fair and rigorous.” The platform utilizes a BTC spot index that provides a volume-weighted average of the USD price of Bitcoin spanning across six crypto exchanges including Coinbase, Bitstamp, Kraken, Liquid, Gemini, and Bittrex.

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KuCoin states:

“The XBTUSDM contract value is 1 USD, which enables traders to make a more flexible investment. At the same time, KuMEX offers a negative fee for Makers at a rate of -0.025% with a certain amount of fixed commission, encouraging users to provide liquidity to the platform through making the market and earning some commission as an incentive,”

The CEO of KuCoin Michael Gan also stated:

“Compared to the spot market, derivatives are much riskier due to the leverage used, so we are more cautious in providing such services. KuMEX is a derivative trading platform independently developed by our team, and from its inception, we have positioned it as a genuine and advanced financial product, so that all users can trust the platform and trade on it freely, without worrying about the loss caused by any form of manipulation.”

Meanwhile, Bitcoin is trading at $11,870 following a 3.44% rise on the day. The crypto surged briefly touching $12,000 on Monday before trimming the gains. The prevailing trend is bearish although the bulls intend to push for a reversal above $12,000.