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Happy Monday Miners and Traders!

We have some updates to share with you regarding Luxor’s Hashprice Non- Deliverable Forward (“NDF”).

To start, we are moving beyond the NDF beta phase. We’ve seen steady growth and interest in the NDF since we launched in October, and we want to thank all of our market makers for pioneering this product with us.

We are also thankful for those of you who have provided feedback on the NDF. We have internalized your input and we will be making the following changes and launching new offerings in the new year.

Standardized Monthly Contracts

In order to expedite and improve the market making process, the Luxor Derivatives team will introduce standardized monthly forwards in addition to custom contracts.

These contracts will trade on a monthly basis with 1, 2, and 3 month expiration periods. For price discovery, we will conduct auctions prior to the contract month. These trades are available for both our USD and new BTC denominated contracts (which we discuss in detail in the following section).

We will conduct the first auction for these standardized contracts beginning today, December 19, through December 31. The contracts themselves will commence on January 1st.

We believe that these standardized contracts will be most attractive to traders looking for structure, longer-duration trades, and the option to layoff exposure.

These standardized contracts will complement our customizable contracts but will not replace them. Market participants will still have the ability to create their own customized contracts.

BTC Denominated Contracts

Many market participants have requested the addition of BTC denominated contracts, so we are pleased to announce that we will begin to provide these contracts in addition to our USD contracts in Q1 of 2023. Traders will be able to bid on January BTC-denominated contracts during the December 19 - 31 auction period.

In certain cases, BTC denominated contracts will allow Hashprice NDF traders to deploy capital more efficiently for margin requirements and collateral options. Additionally, these contracts will provide a different volatility profile for traders with specific hedging needs.

To be clear: we are not retiring the USD-denominated contract. We are adding the BTC-denominated contract as a complementary instrument in response to demand from market participants.

Luxor Position Manager

In addition to changes to the NDF contract structure, we also have a new dashboard for market participants to manage their trades and positions.

Luxor Position Manager is a front-end tool for our counterparties to manage existing positions, as well as post markets for new positions. Users can submit new bids and offers to the Luxor Derivatives team directly from the dashboard, and they can also track daily mark-to-market, profit and loss, and price charts from their account.

Also, in Q1 of 2023, we will offer enhanced margin and collateral capabilities.

We Are Just Getting Started

These additions to Luxor’s Bitcoin Hashprice NDF are just the beginning for our Hashrate Derivatives desk. We will continue to iterate on the product, incorporate your feedback into future updates, and build additional products for the hashrate market.

Stay tuned for future developments!

Cheers, and Happy Holidays!

- Luxor Tech Team

Disclaimer

This content is for informational purposes only, you should not construe any such information or other material as legal, investment, financial, or other advice. Nothing contained in our content constitutes a solicitation, recommendation, endorsement, or offer by Luxor or any of Luxor’s employees to buy or sell any derivatives or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the derivatives laws of such jurisdiction.

There are risks associated with trading derivatives. Trading in derivatives involves risk of loss, loss of principal is possible.