What is BBOD Trading Platform?
BBOD is a hybrid cryptocurrency trading platform that offers traders and investors access to cryptocurrency futures and perpetual contracts.
Is BBOD fully decentralized trading platform?
No, BBOD is world’s first hybrid trading platform. Fully decentralized exchanges has a poor rep of being slow and confusing to use. BBOD is as fast and simple as your favorite centralized exchange and still you can trade from your private ethereum wallet.
Why BBOD is called hybrid platform?
BBOD is a hybrid trading platform because it combines the two most desired features in trading : low-latency trading technology - fast, simple trading and custodial decentralization - which means that BBOD does not hold clients’ coins, BBOD do not hold private keys to users’ accounts.
What is the difference between Trading Platform and Exchange?
At an exchange you physically change one currency to another. At a trading platform you do not. You trade using one currency - make profit or loss that is calculated in this currency.
Is the exchange open 24 hr x 7 days?
Yes. Crypto exchanges usually do not close apart from system outages/updates.
About BBD token
What is BBD token?
BBD token is an ERC-20 token issued by Blockchain Board of Derivatives and is used to pay for transaction fees with discount (similar to Binance’s BNB token).
Where I can buy BBD token?
BBD token can be purchased or sold only at BBOD Trading Platform.
What does determine the price of BBD token?
The price of BBD token is determined by demand and supply. The demand for BBD token is closely related to number and value of transactions generated at BBOD with use of BBD tokens.
Deposits & withdrawals
How do I deposit funds?
To start trading at BBOD, you should transfer Ethereum from you ‘primary’ private wallet into your ‘secondary’ private wallet, which you create at BBOD. That's it, now you can start trading.
What is the Minimum Deposit to trade on BBOD?
The minimum amount of Ethereum to trade on BBOD depends on the product’s initial margin requirement. For ETH/USD (for instance) it is $1 USD * 2% (Initial Margin) = $0.02. At a ETH/USD price of $700 this equals 0.00002857 ETH.
Can I deposit fiat currency like USD, EUR or GBP etc?
No, we only accept Ethereum (ETH) as funds to deposit . To deposit funds go to menu Account > Deposit where your ETH deposit address can be found. ETH can be purchased on other exchanges like: gdax.com, bitstamp.net, kraken.com etc.
I do not have Ethereum, I have fiat currency. Where I can buy Ethereum?
ETH can be purchased on many exchanges. If you have USD or EUR, then you should visit eg. : gdax.com, bitstamp.net, kraken.com. If you have KRW, then eg. upbit.com, bithumb.com or korbit.co.kr. If you have JPY, the eg. zaif.jp or quoinex.com, alternatively bitflyer.jp.
Can I deposit Bitcoin (BTC) ?
Currently we only accept Ethereum (ETH) as funds to deposit. Deposits in Bitcoin will be available in phase 2. When we are able to accept Bitcoin, it will be announced additionally.
I do not have Ethereum, I have Bitcoin (BTC) or other cryptocurrency. Where I can buy Ethereum?
ETH can be purchased on many exchanges, eg. huobi.pro, okex.com, bitflyer.jp or binance.com
When are Ethereum withdrawals processed?
BBOD processed Ethereum withdrawals once a day. Shortly after that, Ethereum will be sent to your primary private wallet.
Deposits and Security
Where I deposit my coins?
You deposit coins into BBOD smart contract. By accepting the rules of the contract, you give BBOD only permission to settle your profit or loss and charge commission. BBOD does not hold anyone's assets and thus cannot lose them on your behalf.
Is Smart Contract the same thing as my Ethereum wallet?
On Ethereum network, there are two types of things that can send and receive money: wallets and contracts. Wallets are controlled by humans, like you (you hold public and private key). Contracts are decentralized application controlled by computer programs.
Can you explain me difference between wallet and contract in with real world example ?
Wallets are very similar to your bank account - you hold public key (account number) and private key (password). Contracts are computer programs that are governed by rules (algorithm) in automatic way. Contracts also have public key but they do not have private key, thus can not be stolen and coins withdrawn by hackers.
Where is the private key of my smart contract stored?
Contracts do not possess private keys in the same way that your ether wallet does. Instead, they have programming code written in the language of the Ethereum Virtual Machine.
How BitFlyer, Bithumb, Binance store clients’ funds ?
These are all examples of custodial exchanges. They are called custodial because they are the ones in possession of your crypto, they are the custodians of your private keys. The exchange have full access to your coins and in most cases no responsibility if the lose your coins.
Does BBOD use a Hot Wallet to store clients’ coins?
No, BBOD does not hold any client’s coins. Your coins are stored in by smart contracts (decentralized application). There is no private key to this wallet. This system is called non-custodial smart wallet.
I had some questions about the security of BBOD, how I should contact?
The most convenient way is to send us an e-mail: email@example.com
What's a Futures contract at BBOD?
In our case a Futures Contract is an agreement to buy or sell a base currency (eg. Ethereum) at a predetermined price at a specified time in the future (at expiry date). The price can be below or above the current spot price which depends mainly on users’ expectation what will be the price at expiry date.
What’s a Perpetual Contract at BBOD?
A Perpetual Contract is a product that combines features of futures contract and spot trade. The contract resembles future contract because offers high leverage. On the other hand, the contract tracks closely spot price and never expires, like spot. Users can hold position until they decide to close it.The combination of both features is possible due to funding mechanism.
What is the practical difference between Perpetual and Futures contract?
Perpetual is more suited for traders who want to trade like at regular spot exchange with use of leverage - because you do not need to rollover the contract - just hold as long as you wish but you will be charged or paid interest rates (funding cost). Futures on the other hand are for traders who prefer more transparency and traceability. For instance, if you hold a perpetual contract for a certain time, you will not know in advance what your funding costs/profit are going to be since the funding rates changes continuously. With Futures there is no such issue as you lock in the price at the beginning of the transaction, and you are sure what you get.
What maturity does BBOD offer on its contracts?
BBOD offers perpetual contracts and many different fixed-date expiries.
What is the Mark Price?
The Mark Price, sometimes called Fair Price, is the price at which the contract is marked for Unrealised PNL and Liquidation/Termination purposes.
How does BBOD calculate the price of a perpetual or futures contract?
BBOD value (mark) contracts according to the Mark Price Calculation Method. This price has an impact on your Unrealised PNL and therefore Portfolio Value. However, your Realized PNL was determined by difference between actual entry and exit price.
How is the Settlement Price calculated?
Futures contracts expire (ends existence, terminates) at Settlement Price. To avoid price manipulation BBOD’s settlement price is calculated based on Average Mark Price Method.
What is a Bid and an Ask?
A Bid is a price at which a user want to buy a contract. This price is always lower than Ask price, which is a price at which a user want to sell a contract. Bid and Ask is a standing order. This means that trader wait for order that matches their expected price.
Does BBOD offer leverage?
Yes, BBOD offers leverage on all of its contracts, up to 50x.
What means leverage 50x?
This means that to trade a contract of value 1, you are required to put collateral as margin of value 1/50. Therefore, for instance, to buy a contract Ethereum-Dollar of value 10 ETH (7,000 USD), you are required to deposit 0.2 ETH (35 USD).
How leverage may impact my profits?
The main function of leverage is to increase potential profits. You deposited 0.2 ETH. You bought a contract Ethereum-Dollar of value 10 ETH (this implies leverage of 50x) The contract price went up by 1%, then your return on deposit is approximately 50%.
How much leverage does BBOD offer?
The leverage varies across products.The leverage is function of initial margin requirements. The lower initial margin requirements (less deposits) the higher leverage. BBOD offers the leverage up to 50x on Ether-Dollar Futures and Perpetual contracts.
What is Margin
Margin is collateral that the holder of a cryptocurrency contract has to deposit to cover the credit risk the holder have for the counterparty.
What is initial margin?
Minimum amount of Ethereum (or Portfolio Value) you must hold (deposit) to open position or order. If initial margin is below initial margin requirement, then you are not allowed to open order.
What is maintenance margin?
Minimum amount of Ethereum (or Portfolio Value) you must hold (deposit) to maintained opened position. If your Portfolio Value is below maintenance margin, then your all positions are liquidated.
When my position will be liquidated at BBOD?
Positions are liquidated if the Portfolio Value (i.e., equity) of a margin account falls below Maintenance Margin threshold.
How does the Liquidation Engine work?
Liquidation begins by submitting an Immediate-or-Cancel order to the market. The limit price of this order is chosen such that if the order is matched, the remaining portfolio value of the margin account will not less than Termination Threshold, in practice the remaining Portfolio Value will be close to zero.
Do you socialise losses?
No. BBOD employs an Auto-Termination System. The system terminates contracts if liquidation process is not successful.
What is Auto-Termination?
Auto-Termination occurs when a liquidation last unfilled in the order book. When this happens, the contracts between you and your counterparties end and that the remaining portfolio value of the margin account is transferred to Insurance Fund.
Is there a fee to deposit Ethereum?
No, BBOD does not charge fees on deposits.
Is there a fee to withdraw Ethereum?
No, BBOD does not charge fees on withdrawals. When you want withdraw your coins from your private wallet deployed at BBOD, then you pay standard gas price to miners of Ethereum network. These fees depend on the current state of the Ethereum network.
Are there any trading fees?
Yes, BBOD charges a trading fee on every executed trade.