Luxor Innovates with Extended Contracts and Daily Settlements for Enhanced Bitcoin Mining

Luxor Technologies is ramping up its derivatives offerings. The company has expanded its Hashprice Non-Deliverable Forwards since exiting the NDF beta phase six months ago. The growth has been marked by increased volume, liquidity, and market participation.

Luxor has now extended its contract durations up to six months. This extension will allow miners to lock in revenue for a longer time. The move eliminates the need for miners to worry about rolling over trades every three months. As the 2024 Bitcoin halving nears, these contracts will provide effective hedging strategies and trading opportunities.

A significant change involves replacing the existing contract structure with “Bullet Monthlies”. This model lets participants trade or hedge specific months without immediate trade or settlement period commencement. This feature offers the flexibility of scheduling trades to begin on future dates.

Alongside these changes, Luxor has introduced daily settlement and dynamic margin. The daily settlement model uses an average of 15-second prints throughout a day to determine that day’s settlement. P&L for the day is then calculated. The dynamic margin allows margin return to participants daily, enhancing capital efficiency.

These improvements are part of Luxor’s ongoing efforts to offer premier products in the hashrate market. They aim to enhance trading flexibility and financial efficiency, aiding the company’s progress towards transforming hashrate into a viable asset class.

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