ACDX is launching the Bull Bear Strike Token (BBS), a leveraged derivatives product that combines perpetual futures and options.
“The current specifications of most derivatives products are too complicated. At ACDX, we want to simplify the whole process to make crypto investment user-friendly for both beginner and sophisticated traders. Busy traders nowadays yearn for an all-rounded yet simple product. That’s how the idea of BBS arises. Moreover, as traders’ appetite for cryptocurrencies continues to escalate, ACDX believes the demand for structured crypto products will follow suit,” says Andy Cheung, Founder of ACDX.
If a trader has a principal of 1 BTC and opens a 20x perpetual futures long position of 20 BTCs priced at USD30,000 for three months, he will have to pay a whopping fee of up to USD25,800, which is 86 per cent of his principal, according to the data from different crypto exchanges.
Unlike perpetual futures, BBS has no funding fees and ACDX offers fee-free trading.
With the same amount of asset, the wealth can be planned in a more cost-effective way.
With a leverage level up to 100x, BBS does not require traders to constantly top up their accounts to maintain the collateral level. Traders can also control their leverage and risk level by selecting different knock-out levels. If traders exit their trade without being knocked-out, they will receive the full amount back – plus or minus any profit or loss.