KuMEX <a href="https://medium.com/kucoinexchange/kucoins-futures-platform-kumex-launches-bitcoin-quarterly-delivery-contract-e774ad48e90f">announced the launch of Bitcoin quarterly future contracts</a> on 31<sup>st</sup> October. KuMEX is the derivative arm of the cryptocurrency exchange KuCoin. Earlier in October, Michael Gan, Chief Executive Officer of KuCoin announced the launch of monthly Bitcoin futures contracts.
<h2>What makes it different from the existing contracts</h2>
These newly announced contracts will differ from existing perpetual contracts available on the platform. These contracts will come with an expiry date. Also, the settlement will derive its price from the underlying assets. According to the announcement, these contracts will settle on the last Friday of the contract month. And the price will be calculated at a 30-minute time-weighted average price (TWAP) of the spot index at 12:00 UTC on the delivery date.

According to the announcement, the platform will list the quarterly contracts for two years.

The announcement states, “If today is May 1, then the contract month will be June and September. Traders can identify the contract month according to the contract ticker. For example, the ticker for a Bitcoin contract to settle in December 2019 is XBTZ19.”
<h2>Attractive Platform for Traders</h2>
Though the launch of KuMEX occurred in July, its features helped to gain a significant userbase in a short span of time. It is mainly because of its negative maker fee of – 0.025%. Also, the taker fee is 0.060%. KuMEX contracts are listed against USD with a 20x leverage which attracts the traders. To provide the actual price of the Bitcoin Spot Index, KuMEX uses a volume-weighted average USD price of Bitcoin across six major cryptocurrency exchanges. These exchanges include Bittrex, <a href="https://www.cryptoknowmics.com/crypto/gemini-launches-its-custody-service-with-18-tokens/">Gemini</a>, Coinbase Pro, Kraken, Liquid and Bitstamp.

KuCoin also announced it will add margin trading to its platform. This facility will provide the traders to leverage the borrowed crypto assets as principal. Also, the traders will be able to bet on short positions and sell the lent crypto asset.
<h2>Booming Crypto Derivative Market</h2>
Recently, there is a huge boom in the crypto derivatives. This will lead to more liquidity in the market. Currently, almost all the major exchanges like Bitfinex, Gate.io or <a href="https://www.cryptoknowmics.com/crypto/crypto-exchange-okex-joins-klaytn-to-boost-blockchain-adoption/">OKEx</a>, offer crypto derivatives. In reference to this, cryptocurrency data aggregator websites are also offering a range of products that keeps track of the derivative market. Recently CoinGecko launched its derivative tracker that tracks around 100 products over 20 derivative exchanges.

KuMEX announces to launch Bitcoin quarterly future contracts

Debarati is a finance MBA who is a keen observer of the current crypto currency market. She likes to read and write about the game changer and industry transforming news of the market.

KuMEX announces to launch Bitcoin quarterly future contracts

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