Index. Ⅰ. Futures. Ⅱ. Register / Verification. Ⅲ. Wallet. Ⅳ. Trading. Click on the subtitle to jump to that section

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2 1 Index Click on the subtitle to jump to that section Ⅰ. Futures Ⅱ. Register / Verification 1) Futures Background 2) Contract Specification 3) Open/Close Position 4) Long/Short Position 5) Maker/Taker and Ask/Bid 6) Leverage 7) Margin 8) Profit and Loss 9) Liquidation Price / Bankruptcy Price 10) Margin Call / Auto-Liquidation 11) Index Price 12) Settlement 1) Register 2) Referral Register 3) Verification 4) OTP Verification 5) Recover Password 6) Change Password 7) Recover OTP 8) Disable OTP Ⅲ. Wallet Ⅳ. Trading 1) Deposit 2) Withdraw 3) Wallet 4) Fee 5) Settlement 1) Trading Screen Outline 2) Settlement Date 3) Chart 4) Order Book 5) Recent Trades 6) Order Trades 7) Order Summary

3 2 Ⅰ. FUTURES 1. Futures Background 1) Futures Contract Futures trading is an agreement to buy and sell a product at a fixed price at a certain time in the future. Because of the promise to sell at a predefined price, traders can avoid losses that can be caused by spot price fluctuations. Although it started with the purpose of risk avoidance, it has developed into high profit and high risk investment product by actively accepting the risk using advanced financial techniques like leverage. Traditional futures contracts contemplate that the agreement will be fulfilled by actual delivery of the product at a future date, while other contracts allow cash settlement in lieu of delivery. Most contracts are liquidated before the delivery date. Traders participate in futures trading because of the many advantages of futures trading. First, futures trading has a hedging function. In other words, by reducing the risk of spot price fluctuations, a stable market can be formed. Second, futures trading expands liquidity in spot markets. This is because the hedging function of futures trading reduces the investment risk of the spot and increases the inflow of new investors. Third, it serves as an expectation of price by presenting the expected value of future spot price. Fourth, futures trading can be a new means of investing by providing leverage that allows you to trade large amounts at low capital. Khan Academy has very comprehensive lectures on futures investing for those wishing to learn more. 2) Futures Outline Spot contract is traded in a simple manner, buying at low price and selling at high price, but Futures have introduced new concepts because of the different forms of contracts. Here are the important and typical futures trading terms. Click on the subtitle to jump to that section. 1. Open/Close Position : There is a concept of Buying/Selling in the Spot, while there is a concept of Open/Close in the Futures.The Open/Close positions represent the beginning and end of the contract. 2. Long/Short Position : Since the spot price at the time of promise and the spot price at the future may be different, the concept of Long/Short has been introduced in predicting future price.

4 3 3. Maker/Taker and Ask/Bid : It refers to the type of trader participating in futures trading and the type of order traders make. 4. Leverage : As futures trading changes as a means of investment, the concept of Leverage was introduced to get lots of profits with small amount of capital. 5. Margin : In futures trading, the concept of Margin was introduced to ensure an uncertain future. 6. Profit and Loss : It is the profit calculation method of futures trading. 7. Liquidation Price / Bankruptcy Price : Liquidation Price and Bankruptcy Price are standard prices to inform the risk of Margin Call. 8. Margin Call / Auto-Liquidation : Margin calls and Auto-Liquidation are automatic settlements when you can not maintain a Maintenance Margin. 9. Index Price : In futures trading, you need a standard price to compare the price of the spot and the futures. Index Price is an indicator of spot market prices. 10. Settlement : Futures contracts have an Settlement date concept to complete transactions at a future point in time. 3) Contango and Backwardation In the case of futures contracts, since the transaction items must be held until a certain time in the future, the storage costs and interest expenses are added to the spot prices. Thus, there will be a price difference between the spot and the futures. This difference is called Basis. Basis : Price difference between the spot and the futures In futures markets, there are two types of market depending on the Basis, that is, the difference between futures and spot prices. Contango : The market state that Basis is positive(the futures price is higher than the spot price) Backwardation : The market state that Basis is negative(the futures price is lower than the spot price) If the market is normal, the futures price is higher than the spot price, and the farther from the Settlement date, the higher the price. That's why Contango is called as a normal market. On the other hand, in an abnormal market, ie, the Backwardation market, spot prices are higher than futures prices due to market imbalances such as short supply shortages.

5 4 On the Settlement date of the futures, either the Contango market or the Backwardation market, the price of the future and the spot become the same, and the Basis becomes zero. Nexybit provides Index Prices extracted from four spot exchanges(bitstamp, Bitfinex, Coinbase and Kraken). You can do analytical trading with this. The Index Price is displayed just below the Last Price in the Order Book.

6 5 2. Contract Specification 1) contract specification Nexybit is a trading platform for cryptocurrency. You can trade the future value of Bitcoin long and short with up to 50x leverage to benefit from price swings or to hedge your price risk. Trading Futures can be advantageous because you are allowed to benefit from price increases as well as declines. You can use financial leverage for hedging price risk associated with low transaction fees. We currently list futures on the US Dollar price of Bitcoin which comes with quarter maturities(march(3), June(6), September(9), December(12)). Underlying Asset Instrument Type Price Quotation BTC/USD Inverse Futures USD per 1 BTC Contract Size $10 Maintenance Margin 1.0% Leverage Range Maturity(Settlement Month) Settlement Method 1 ~ 50x Quarter(Mar, Jun, Sep, Dec) Bitcoin settled Futures contracts on Nexybit are written like this; BTC The first 3 letters represent the name of the base currency. The last 6 numbers represent the date when the futures contract expires(yymmdd). 2) Inverse Futures Nexybit introduced the concept of Inverse to convert USD to Bitcoin. It s because you use Bitcoin to bet on the contract s price in USD in contrast to using USD to bet on the price of Bitcoin. If you are curious about the concept of Inverse, you can read the full paper here.

7 6 3. Open/Close Position There is a concept of Buying/Selling in the Spot, while there is a concept of Open/Close in the Futures. In futures, the contract must be open and closed to finish one transaction. Therefore, the Open/Close positions represent the beginning and end of the contract. Open Position : The state in which a contract is filled, but has not yet been closed Close Position : The termination of the contract by offsetting the opened order to the opposite position 1) Open Position Open Position is the state in which a contract is filled, but has not yet been closed. In other word, it means as buying or starting a contract. There are two options for Open Position: Long and Short. An Open Long is a bet on a price increase if it is judged that the future price will be higher than the current price. On the other hand, an Open Short is a bet on a price decline if the price of the future will be lower than the current price. Therefore, to borrow the concept of Spot trading, Open Long position can be expressed as BUY, and Open Short position can be expressed as SELL. To open a contract, you would enter the Price, Quantity and Leverage you want to open at in the Order Trade and press the Long or Short button below. An Open order is recorded in the Open Positions tab if it is filled immediately, or in the Open Orders tab if it is not filled yet or only partly filled. If only the part is filled, the quantity of the filled contract is recorded in the Open Positions tab and the remaining quantity is recorded in the Open Orders tab.

8 7 An profits of Open position is determined by the market price and your Long/Short position. Profits of Open position are marked as UnP/L(Unrealized Profit and Loss) and reflected in Account Equity. UnP/L is converted to Realized P/L(Realized Profit and Loss) after the contract is closed and is reflected in the Account Balance. 2) Close Position Close position is the termination of the contract by offsetting the opened order to the opposite position. In other word, it means as selling or finishing a contract. In traditional futures trading, goods are delivered on the delivery day, but in the Bitcoin transaction, the concept of Close is introduced as a concept of buying and selling a contract, not a delivery. To close your contract, you would enter the Price, Quantity you want to close at in the Open Positions tab at Order Summary. If you open your order with Long position(buy), it will close with a Close Long(Sell). If you open it with Short position(sell), your contract will end with a Close Short(buy). An closed order is recorded in the Closed Positions tab if it is filled immediately, or in the Open Orders tab if it is not filled yet or only partly filled. If only the part is filled, the quantity of the filled contract is recorded in the Closed Positions tab and the remaining quantity is recorded in the Open Orders tab.

9 8 The profits of Closed position is determined by the market price and your Long/Short position. Profits of closed position are marked as Realized P/L(Realized Profit and Loss) and is reflected in the Account Balance. If the contract is closed even though you have not closed, it will be one of two cases. The first is due to Margin Call or Auto-Liquidation. The second is when the month has expired and has been automatically settled. In this case, the profit is based on the Index Price and reflected in the Account Balance.

10 9 4. Long/Short Position Long/Short position is one of the most important features of Futures contract, distincted from spot transactions. Spot trading can only generate profits when prices go up, because the way of the spot is to buy when the price is low, and to sell when the price is high. On contrary, futures trading has the advantage of earning profits even when prices go up or down through Long positions and Short positions. Each position represents a side that predicts whether future prices will rise or fall. Long Position : A position that you choose when you think that future value will rise above its current value Short Position : A position that you choose when you think that future value will be lower than its current value 1) Long Position Long position is a position that you choose when you think that future value will rise above its current value. If your prediction is right and the market price rises, you will get profits. Conversely, if your prediction is wrong and the market price goes down, you will get losses. 2) Short Position Short position is a position that you choose when you think that future value will be lower than its current value. If your prediction is right and the market price goes down, you will get profits. Conversely, if your prediction is wrong and the market price rises, you will get losses.

11 10 3) Matching System The Matching system is a system that sets the Long and Short positions to match each other with agreed price(filled price). When an order is filled, the Long position and the Short position are matched with each other, and Profit and Loss are exchanged according to the fluctuation of the market price. If the market price goes up, the loss of the Short position becomes the profit of the Long position. Contrary, if the market price goes down, the loss of the Long position becomes the profit of the Short position. Therefore, combination of the Profit and Loss of two positions becomes zero sum. If one side position reaches a Liquidation Price and a Margin Call is occured, the other will also get Auto-Liquidation. That is, all the Initial Margin of the margin called position will be the profit of the auto-liquidated opposing position.

12 11 5. Maker/Taker and Ask/Bid 1) Maker/Taker Maker/Taker is the trader who participates in the trade. These two are distinguished by the way they order. Maker : Trader who enter Long/Short orders and wait for their order to be executed by another trader Taker : Trader who immediately execute trades on existing orders rather than waiting for their price to be met by other traders If you are waiting for a contract to be filled after placing your price you set, you are the Maker. On the other hand, if you fill an order by ordering the price the Maker submitted in the Order Book, you are the Taker. 2) Ask/Bid Ask and Bid are orders by the Maker and have not yet been filled. The difference between Ask and Bid is the price to sell or to buy. Ask : It is an order that the Maker sells for sale. This includes Open Short and Close Long orders. Bid : It is the order that the Maker puts out to buy. This includes Open Long and Close Short orders. Ask and Bid are displayed in the Order Book.

13 12 6. Leverage 1) Nexybit Leverage Policy Leverage is a system that maximizes your profits by borrowing capital from others, providing you with the opportunity to invest a large amount of money with less capital. For example, when you earn 110 revenues with 100 capital, your net profit rate is 10%, but if you earn 110 revenues with 10 capital and 90 borrowed money, your net profit rate will be 100%. Leverage is a magic wand that makes it easy to invest with a small amount of capital. Nexybit offers Leverage up to 50x. This means that you can invest up to 50 in 1 capital. However, Leverage also can be that much risk. If your prediction of the market trend fails, you can get losses more than your investment capital. But do not worry. NexyBit applied the Risk Management System to prevent loss of more than its investment capital. Nexybit also offers Leverage Combination System. Leverages in the same Long/Short position for the same month orders are added together and displayed as average Leverage. If you are in danger of a Margin Call, you can reduce your risk by lowering the average leverage by adding additional orders. Conversely, raising the average of your leverage can also give you the opportunity to maximize your profits. If you use the Leverage Combination System effectively, it will bring you more profit and opportunity. Nexybit offers leverage up to 50x. Nexybit applied the Risk Management System. Nexybit offers Leverage Combination System. 2) Leverage Effect Leverage is to have a big profit with low capital which is called Initial Margin. In other words, you can adjust the amount of Initial Margin by adjusting Leverage. The larger the leverage, the smaller the Initial Margin required to submit an order.

14 13 For example, if you would like to buy 1 contracts at 10,000 USD per bitcoin, your Initial margin varies based on leverage like this : Leverage 1x 10x 20x 30x 40x 50x Leverage % 100% 10% 5% 3.33% 2.5% 2% Initial Margin (BTC) However, the higher the leverage, the higher the risk of Liquidation too. Liquidation occurs when the market price changes enough to cause a loss of the Initial Margin on the order. To prevent this, add an Initial Margin in the Open Position of the Order Summary.

15 14 7. Margin A traditional futures contract is a contract for an uncertain future, so a Margin secured by trust was required. However, in a Bitcoin futures contract, Margin can be regarded as the investment capital. Types of margins in a Bitcoin futures contract include Initial Margin, and Maintenance Margin. In addition, to calculate the margin, Order Value is required. Order Value : The total value you ordered Initial Margin : The margin required to fill an order, based on the leverage ratio Maintenance Margin : The minimum margin to maintain order If you placed an order with 2x leverage, then the Order Value, Initial Margin, and Maintenance Margin for your order are like this : 1) Order Value Order Value is the total value you ordered and depends on the price and quantity you ordered. Nexybit introduces the Inverse concept and displays the order value as a Bitcoin-converted value. Order Value = 1/Entry Price * Quantity * Contract Size($10) For example, if you would like to buy 50 contracts at 10,000 USD per bitcoin, your order value will be : 1/10000 * 50 * 10 = 0.05 BTC You can check the Order Value in the Order Information section of the Order Trade.

16 15 2) Initial Margin(IM) Initial Margin(IM) is the margin required to fill an order. Initial margin varies depending on Leverage. The larger the Leverage, the smaller the Initial margin. You can order Order Value in small amounts of Initial Margin by effectively adjusting the Leverage. Initial Margin = 1/Entry Price * Quantity * Contract Size($10) * Leverage Ratio = Order Value * Leverage Ratio For example, if you would like to buy 1 contracts at 10,000 USD per bitcoin, your Initial margin varies based on Leverage like this : Leverage 1x 10x 20x 30x 40x 50x Leverage % 100% 10% 5% 3.33% 2.5% 2% Initial Margin (BTC) However, the higher the Leverage, the higher the risk of Liquidation too. Liquidation occurs when the market price changes enough to cause a loss of the Initial Margin on the order. To prevent this, add an Initial Margin in the Open Position of the Order Summary. You can check the Initial Margin in the Order Information section of the Order Trade when you order, or in the Open Positions tab of the Order Summary when you have filled open orders. 3) Maintenance Margin(MM) Maintenance Margin(MM) is the margin required to maintain open positions. Maintenance Margin = 1/Entry Price * Quantity * Contract Size($10) * 1% = Order Value * 1% For example, if you would like to buy 50 contracts at 10,000 USD per bitcoin, your maintenance margin will be : 1/10000 * 50 * 10 * 1% = BTC When the position goes against you and its value of a margin account falls below Maintenance Margin, some or all of the open positions are closed and the system takes to prevent further losses. Liquidation Price is the point at which the Maintenance Margin begins to lose and Bankruptcy Price is the point at which all Maintenance Margin is lost.

17 16 8. Profit and Loss Profit and Loss is the profit/loss that arise from the trading process. Profits and losses are settled by the Matching System in a zero-sum method that matches the profit or loss of the opposing position. Types of Profit and Loss include Unrealized Profit and Loss(UnP/L) and Realized Profit and Loss(P/L). Unrealized Profit and Loss : Profit or loss from open positions Realized Profit and Loss : Profit or loss from closed orders While Unrealized Profit and Loss comes from the difference between your entry price and the current market price, Realized Profit and Loss comes from the difference between your entry price and your exit price. Nexybit introduces the Inverse concept and displays the Profit and Loss as a Bitcoin-converted value. Long Position Short Position Profit and Loss (1/Enp - 1/Exp) * qty * contract size (1/Exp - 1/Enp) * qty * contract size For Example, if you would like to buy Long 50 contracts at 10,000 USD per bitcoin. When the price of Bitcoin increases and you are able to sell the Futures at 12,000, your P/L is calculated as : (1/10,000-1/12,000) * 50 * 10 = BTC On the other hand, if you would like to buy Short 50 contracts at 10,000 USD per bitcoin. When the price of Bitcoin decreases and you are able to sell the Futures at 8,000, your P/L is calculated as : (1/8,000-1/10,000) * 50 * 10 = BTC The profit and loss of an order that has not yet been closed is marked as Unrealized Profit and Loss and is added to the Account Equity. If the order is closed, Unrealized Profit and Loss will be converted to Realized Profit and Loss and reflected in Account Balance. If you have not closed your open position until the Settlement date, the Unrealized Profit and Loss will be settled based on the Index price.

18 17 9. Liquidation Price / Bankruptcy Price Sometimes, Leverage can be a double-edged sword. You can see huge profits with small amount of Initial Margins by leveraging, but on the other hand you can get a big loss when you are not lucky. Nexybit operates a Risk Manage System so that you do not lose more than your Initial Margin. Liquation Price and Bankruptcy Price are both the standard prices triggered by the Risk Manage System. Liquidation Price : The point at which the Maintenance Margin begins to lose Bankruptcy Price : The point at which all Maintenance Margin is lost 1) Liquidation Price Liquidation Price is the point at which the Maintenance Margin begins to lose. Liquidation Price (Long side) = Entry Price / (1 + IM% - MM%) Liquidation Price (Short side) = Entry Price / (1 - IM% + MM%)

19 18 For example, if you would like to buy 1 contracts at 10,000 USD per bitcoin with 20 leverage, the position will be liquidated if the market price reaches the liquidation price which is calculated as : Long side : / (1 + 5% - 1%) = 9, USD Short side : / (1-5% + 1%) = 10, USD When the market price reaches the liquidation price, your open position is liquidated, which is called a Margin Call. To prevent this, add an Initial Margin in the Open Position of the Order Summary. 2) Bankruptcy Price Bankruptcy Price is the point at which all Maintenance Margin is lost. Bankruptcy Price (Long side) = Entry Price / (1 + IM%) Bankruptcy Price (Short side) = Entry Price / (1 - IM%) For example, if you would like to buy 1 contracts at 10,000 USD per bitcoin with 20 leverage, the position will be liquidated if the market price reaches the Bankruptcy price which is calculated as : Long side : / (1 + 5%) = 9,524 USD Short side : / (1-5%) = 10,526 USD Liquidation Price Long Position Entry Price / 1 + IM% - MM% Short Position Entry Price / 1 - IM% + MM% Bankruptcy Price Entry Price / 1 + IM% Entry Price / 1 - IM%

20 Margin Call / Auto-Liquidation Sometimes, Leverage can be a double-edged sword. You can see huge profits with small amount of Initial Margins by leveraging, but on the other hand you can get a big loss when you are not lucky. Nexybit operates a Risk Manage System so that you do not lose more than your Initial Margin. Margin Call and Auto-Liquidation are the actions made when the Risk Manage System occurs for preventing further losses. Margin Call : Liquidated when the market price reaches the liquidation price Auto-Liquidation : Liquidated by the matching system when the opposing position has a Margin Call 1) Margin Call When the market price reaches the liquidation price, your open position is liquidated. This action is called a Margin Call. When Margin Call occurs, the position will be closed at the bankruptcy price. To prevent Margin Call, add an Initial Margin in the Open Position of the Order Summary. If your position is closed by Margin Call, you can check the status and losses in the Closed Positions, Filled Orders, and Order History categories of Order Summary section. 2) Auto-Liquidation Auto-Liquidation is the action of liquidation by the matching system when the opposing position has a Margin Call. When Auto-Liquidation occurs, the position will be closed at the bankruptcy price of opposing position. If your position is closed by Auto-Liquidation, you can check the status and profits in the Closed Positions, Filled Orders, and Order History categories of Order Summary section.

21 Index Price To reflect the price changes of the global BTC market, Nexybit sets up and offers an Index Price. Index Price is the arithmetic mean of the spot prices from the four Spot exchanges(bitstamp, Bitfinex, Coinbase and Kraken) sent every 2 seconds. Index Price is needed to estimate the closing price and may be used as a base price for the buying/selling price. Also, when the Settlement date comes, the profits of the unclosed position will be settled at the index price.

22 Settlement 1) Settlement date The Nexybit Futures platform has implemented a quarterly settlement system for all contracts. All contracts will be settled at 08:00 UTC on the last Friday in March(3), June(6), September(9), December(12). During the settlement period, trading will be temporarily closed. Settlement will normally take around ten minutes. 2) Settlement of Unrealized Profit and Loss Unrealized Profit and Loss will be settled to the Account Balance. If according to the settlement price the Unrealized Profit and Loss is calculated to be negative (positive), the Account Balance will be reduced (added) by the equivalent amount. After settlement is completed, the Unrealized Profit and Loss of each contract will be reset to zero, and the price of each open position adjusted to the settlement price. 3) Settlement Price To prevent misconduct raising futures prices by adjusting spot prices, the price used for settlement will be calculated as the time weighted average of the Nexybit index over the last 60 minutes before expiration. The Nexybit Index Price gets calculated every 2 seconds.

23 22 Ⅱ. REGISTER / VERIFICATION 1. Register

24 23 2. Referral Register The Nexybit referral program is the highest in the industry. Becoming part of the referral program means you take 80% of the fees from your referred users while providing a three month trading fee discount for the users you referred. 1) Referral

25 24

26 2) Referee 25

27 Verification Deposits are allowed after confirmation.

28 If you did not request an verification, please contact us at 27

29 28 4. OTP Verification Withdrawals are allowed after confirmation.

30 29

31 If you did not request an OTP verification, please contact us at 30

32 31 5. Recover Password Recovering password is possible after verification.

33 If you did not request a password reset, please contact us at contact@nexybit.com 32

34 33 6. Change Password (Passwords can be 8 to 24 alphanumeric characters. Old passwords and the new password must be different.) If you did not request a password change, please contact us at contact@nexybit.com

35 7. Recover OTP 34

36 35

37 8. Disable OTP 36

38 37

39 38 Ⅲ. WALLET 1. Deposit Deposit is allowed after confirmation. You will be given a personal address and QR code when you enter the deposit page. This address allows you to deposit a Bitcoin into your Nexybit account.

40 39 The minimum deposit amount is BTC (10000 Satoshi). Your deposit will be credited after 1 confirmation. Only send Bitcoins to the Bitcoin address. To obtain Bitcoin, you can exchange your local currency at any major Bitcoin exchange, such as Bitstamp, Bitfinex or OKCoin. We don't charge fees for deposits. If deposit is completed, you will be able to see the deposit details on Account > Wallet > Transactions page.

41 40 2. Withdraw To withdraw Bitcoin from your Nexybit account, go to Account > Withdraw. Withdrawal is allowed after confirmation and OTP authentication. In the Withdraw page, you can enter the withdrawal price at Amount to Send. Daily withdrawal limit is 4.00 BTC and Minimum withdrawal limit is BTC. Withdrawal fee is charged based on blockchain load. The withdrawal fee is added to the withdrawal price and displayed on the Total Amount (No fees will be charged for Nexybit internal accounts). Please enter the withdrawal address at Destination Address, and double-check. After OTP authentication, your withdrawal will be completed.

42 41 If withdrawal is completed, you will be able to see the withdrawal details on Account > Wallet > Transactions page.

43 42 3. Wallet Wallet is a page where you can check your Account Balance and Profit and Loss. The Wallet screen consists of Balance, Margin Status and Daily Statement. 1) Balances Balance is a section where you can see your total assets in various situation. This is the overall system of Balances. Account Balance : Current total assets not including UnP/L of open positions Account Balance = Deposits - Withdrawal + Realized P/L - Fees + Referral rebates received

44 43 Unrealized Profit and Loss : Current profit or loss from all open positions. When the open orders are filled, Unrealized P/L is converted to Realized P/L and reflected in Available Balance. Account Equity : Current total assets including UnP/L of open positions Account Equity = Account Balance + unrealized P/L Withdrawable Balance : Account balance available for withdrawals now 2) Margin Status Margin Status is a section where you can see the Balance and Margin required for trading. This is the overall system of Margin Status. Account Balance : Current total assets not including UnP/L of open positions Account Balance = Deposits - Withdrawal + Realized P/L - Fees + Referral rebates received Initial Margin : The amount of Bitcoin that is required to fill a long or short order Order Margin : The amount of Bitcoin that is required to open a long or short order. When the orders are filled, Order Margin is converted to Initial Margin. Available Balance : Account balance available for orders now Available Balance = Account Balance - Initial Margin - Order Margin 3) Daily Statement

45 44 Balance Statement is a useful system to check your daily profit and loss. You can see the amount of deposits and withdrawals, daily profit and loss, fees, and referral rebates received here. Time : The time at which the balance statement is entered. The record is made every day 0:10 UTC. Previous Balance : Balance before daily settlement Deposit : Your deposit amount for one day Withdraw : Your withdrawal amount for one day Realized P/L : Realized Profit and Loss from trading during the day. The Unrealized Profit and Loss(UnP/L) in your open position is not recorded. Fees : This fee is the sum of trading fee and withdrawal fee Referral : Referral rebates received. If you are a referral, you will receive 80% of the trading fee. If you are a referee, you will be refund 20% of the refund trading fee for 3 months. Account Balance : Balance that reflects the amount of deposit/withdrawal, realized P/L, fees, and referral rebates received from the previous balance.

46 45 4. Fee 1) Deposit / Withdrawal Fees BItcoin deposits are credited after 1 confirmation on the network. We don t charge any extra fees for deposits. Each and every withdrawal on Nexybit is checked by hand by at least two Nexybit employees before sending. Funds on the Nexybit exchange are always held in multi-sig addresses and the majority of the funds are always kept in a cold wallet. Deposits : Free Withdrawals : Charged based on network conditions. There are no additional withdrawal fees. Also, No fees will be charged for Nexybit internal accounts. 2) Trader Fees We believe simplicity is market enhancing. This is why our fee structure is simple and not weighted. Fees are calculated as a percentage of the position value and charged on both open and close position. Maker Fee : % Taker Fee : % Maker : Makers enter long and short orders and wait for their order to be executed by another trader. Taker : Takers immediately execute trades on existing orders rather than waiting for their price to be met by other traders. 3) Referral Bonus The Nexybit referral program is the highest in the industry. Becoming part of the referral program means you take 80% of the fees from your referred users while providing a three month trading fee discount for the users you referred. Referral : Referral can earn 80% of the trading fees from each referee Referee : Referee will be given 20% of trading fee discount for three months For further details, please refer to the Referral Program page.

47 46 5. Settlement 1) Settlement date The Nexybit Futures platform has implemented a quarterly settlement system for all contracts. All contracts will be settled at 08:00 UTC on the last Friday in March(3), June(6), September(9), December(12). During the settlement period, trading will be temporarily closed. Settlement will normally take around ten minutes. 2) Settlement of Unrealized Profit and Loss Unrealized Profit and Loss will be settled to the Account Balance. If according to the settlement price the Unrealized Profit and Loss is calculated to be negative (positive), the Account Balance will be reduced (added) by the equivalent amount. After settlement is completed, the Unrealized Profit and Loss of each contract will be reset to zero, and the price of each open position adjusted to the settlement price. 3) Settlement Price To prevent misconduct raising futures prices by adjusting spot prices, the price used for settlement will be calculated as the time weighted average of the Nexybit index over the last 60 minutes before expiration. The Nexybit Index Price gets calculated every 2 seconds.

48 47 Ⅳ. TRADING 1. Trading Screen Outline Here is the configuration of trading screen provided by Nexybit. Click on the subtitle to jump to that section Settlement date : Monthly display section of the coin trade Chart : A chart showing price fluctuations and trading volume over a given unit of time. Order Book : The section that displays the most recently traded price, the Index price, and an Ask/Bid order list Recent Trades : The section that shows the transactions that have recently been filled Order Trades : Order window Order Summary : The section you can adjust your open/close order and check your order history This is the overall flow of transactions. First, at the top of the Trade screen, select Coins and Months you want to trade. Next, check the information you need for trading, such as Chart, Order Book, and Recent Trades. Third, execute the order in the Order Trade window. Finally, check the results and profit of the order and closes the order in the Order Summary.

49 48 2. Settlement date A futures contract is an agreement to buy or sell a particular product at a future date. In this case, the product is Bitcoins or another cryptocurrency. Unlike spot transactions, futures products are only active(can be traded) for a specific amount of time. The contract then expires and cannot be trade anymore. The date upon which a futures contract expires is known as its Settlement date. On Nexybit, the futures products have Settlement dates in one month intervals. You can choose the month you want to trade from the top of the trade screen. Please note that if the month is different, it is a completely different trade. Always check the Order Trades and Order Summary sections if they are the right trade you want. The Settlement date can be read from looking at the product name. Futures contracts on Nexybit are written like this; BTC YYMMDD. The first 3 letters represent the name of the base currency. The last 6 numbers represent the date when the futures contract expires(yymmdd). On the top of the trading screen, if you click an Settlement date, the charts, bid/ask orders and trading information changes to that particular product. Your Order Summary > Open Positions also updates accordingly. Clicking on different positions also updates the trading screen to that particular product. If you have not closed your open position until the Settlement date, the profit and loss will be settled based on the Index price.

50 49 3. Chart Charts are an important part of predicting and determining price and position by showing trading trends. The two most important aspects of a chart is the trading price and the trading volume. Nexybit uses the standard candlestick charts to display the price. Nexybit offers OHLC on a daily basis. You can see this information in the top left of the chart. OHLC : Open-High-Low-Close Chart. Open Price : Starting price within the unit time HIgh Price : Highest price within the unit time Low Price : Lowest price within the unit time Close Price : Finishing price within the unit time Vol : Contract volume Nexybit also offers SMA. You can choose 5, 10, 20, 60, or 120 units of SMA. SMA : Simple Moving Average. SMA represents the close price average of unit time. For example, if you select 1m unit of time and the SMA(5), the graph shows the average of the close price over the last 5 minutes(1m X 5).

51 50 4. Order Book The order book displays the most recently traded price, the Index price, and an Ask/Bid order list. The Ask order list is a list of Open Short and Close Long orders. It is an order that the Maker sells for sale. You can buy a Ask price with Open Long or Close Short order. On the contrary, Bid order list is a list of Open Long and Close Short orders. You can buy a Bid price with Open Short or Close Long order. In the Order Book, Ask is closer to the center of the Index Price at lower prices, and Bid is closer at higher prices. Price : Ask/Bid price. If it is Ask(Open Short or Close Long order), it will be displayed in red. Other case, Bid(Open Long or Close Short order), it will be displayed in blue. If you click the Price on the Order Book, your price on your Order Trades(or in case of closing your open positions, on your Open Position tab of Order Summary) will be changed to that price. Amount : The Ask or Bid quantity. If you click an Amount on the Order Book, the order quantity on your Order Trades is updated. Cumulation : The cumulative quantity of Asks or Bids shown in the Order Book. For Longs, the cumulative quantity is measured in the order of the highest amount, and Short is the

52 51 opposite. If you click a figure in the Cumulation column, the order quantity is updated on your Order Trades. Users can refer to the Last Price and Index Price for placing an order. Last Price : Recently filled Price Index Price : Market price of spot. To reflect the price changes of the global BTC market, Nexybit s Index Price is the arithmetic mean of the spot prices from the four Spot exchanges(bitstamp, Bitfinex, Coinbase and Kraken) sent every 2 seconds.

53 52 5. Recent Trades The Recent Trades window is a section that shows the transactions that have recently been filled. Prices and Amounts are displayed in blue if they have been filled with a Long order, and red if they have been filled with a Short order. Time : Time the order was filled Price : Recently filled Price Amount : Recently filled quantity

54 53 6. Order Trades Order Trade is the order window. It is divided into the Order section where you input values for an order, the Order Information section where you can see your account balance and order information, and the Notification section that tells you the status of the order. 1) Order 1 Choose the order Price and order Quantity. Price Limit Policy : For fair and transparent markets and tradings, Nexybit sets a Price Limit Policy. There are four pricing standards. Price Limit standards or percentages may be adjusted at any time in accordance with market conditions and Nexybit policies. - Index Price Limit : Traders can not place an order more than 50% (Open Long / Close Short position) or less than 50%(Open Short / Close Long position) of index price. - Premium/Discount + Index Price Limit : During the first 60 minutes of the first day of the Futures month, price limits are applied at 1 ± 25% of the index price. After 60 minutes, we calculate the premium/discount price as the average between open price and close price during 10 minutes. The price limit is set to this premium/discount price plus 1 ±3% of the index price. - Liquidation Price Limit : Traders cannot place your order below the Liquidation Price(Long position) or above(short position). 2 Choose Leverage to decide Margin. Leverage allows you to pay a small portion of the contract's total value in the form of margin. The greater the degree of leverage, the lower initial margin is required. With up to 50x leverage you can magnify your profit. 3 Choose the position whether to take a Long or Short. If you think the price will go up, select the Long position. If you think the price will decrease, select the Short position.

55 54 2) Order Information The Order Information is a section where you can view information related to your account and your order. Available Balance : Account balance available for orders now Available Balance = Account Balance - Initial Margin - Order value order value : The total notional value of order order value = 1/Trading Price * Number of Contracts * Contract Size ($10) Initial Margin : The amount of Bitcoin that is required to fill an order. Initial Margin varies based on your selected Leverage. Initial Margin = 1/Trading Price * Number of Contracts * Contract Size($10) * Leverage Percentage = Order Value * Leverage Percentage 3) Notification The Notifications are displayed when an order is ordered, filled, or canceled, such as... Order submitted : 1 Open(Close) Long(Short) Contracts (BTC180427) at $7000 Order canceled : 1 Open(Close) Long(Short) Contracts (BTC180427) at $7000 Order filled : 1 Open(Close) Long(Short) Contracts (BTC180427) at &7000 They are recorded as Order state : Your order quantity - Open/Close positions - Long/Short positions - Contract name(coin name with the Settlement date) - order price.

56 55 7. Order Summary Order Summary is the section you can adjust your open/close order and check your order history. At the top of the Order Summary, you can see your Account Equity and UnP/L of your open positions. Account Equity : Total assets in your account including UnP/L of open positions Account Equity = Account Balance + Unrealized Profit and Loss Unrealized Profit and Loss : Profit or losses from all open positions The Order Summary is divided into five tabs: Open Positions, Closed Positions, Open Order, Filled Orders, and Order history. Open Positions : Filled open orders are recorded in this tab. You can adjust your initial margin, check the UnP/L, and close a position. Closed Positions : Closed orders are recorded in this tab. You can check your realized P/L or close type(limit, Margin call, Auto-Liquidation). Open Orders : An open or close order that has been ordered but hasn t been filled is recorded in this tab. You can check your open orders, view the unfilled quantities, and cancel unwanted open orders. Filled Orders : All filled orders are recorded in this tab Order History : All order histories are recorded in this tab 1) Open positions Filled open orders are recorded in this tab. You can adjust your initial margin, check the UnP/L, and close a position. Nexybit supports up to 4 open positions, one for each Long /Short position in each of

57 56 the two months(settlement dates). Orders that are in the same position within the same month are summed by price and leverage and displayed as the average. Contract : Contract name. The first 3 letters represent the name of coin to trade. The last 6 numbers represent the day of year, month and date on which a futures contract expires(yymmdd). Side : Long/Short positions Average Entry Price : The average price in which the order has been filled at Hold : The quantity of contracts in an order that has been filled Avai l : The quantity of contracts that can be submitted to close (Holding quantity minus the number of opened contracts to close) Leverage : The average of leverages you selected to place the order Initial Margin : The cost to place this order. You can add or remove the margin assigned to your position that increase or decrease the liquidation price. Unrealized Profit and Loss : Profit or loss from open positions. The ratio is calculated as the unrealized profit and loss divided by initial margin. Liquidation Price : The Liquidation Price is the price at which your position is automatically closed to prevent further losses from your account. Your position will be liquidated if the market price of the contract reaches below this price(when long) or above this price(when short). If you want to prevent liquidation(margin Call), adjust the Initial Margin. you can also close your open positions in this tab. Exit Price : The price you wish to close at Quantity : The quantity of contracts you wish to close Close : You can close your position by submitting an order of the opposite side. Click the Close button to close your order. If it has been filled, it can be recorded in the Closed Positions. If it is not yet filled, it can be seen in the Open Orders tab. 2) Closed positions Closed order is recorded in this tab. You can check your realized P/L or close type(limit, Margin call, Auto-Liquidation). Order Number : Order number Contract : Contract name. The first 3 letters represent the name of the coin to trade. The last 6 numbers represent the day of year, month and date in which a futures contract expires(yymmdd). Date : Time the order is filled Side : Long/Short positions Open Price : The price your position opened at Closed Price : The price your position closed at Quantity : The quantity of contracts your position closed

58 57 Profit : The Realized Profit or Loss you earned Leverage : The leverage you selected to place the order Type : Type of order(or close) Limit : Limit is the type of order that you wish to trade at the specified price Margin call : Your position has been closed because a Margin Call happens when Maintenance Margin level of 1% has been breached Auto-Liquidation : Your position has been closed because Auto-Liquidation occurs.traders who hold opposing positions will be closed out according to leverage and profit priority. 3) Open orders An open or close order that has been ordered but not yet filled is recorded in this tab. You can check your open orders, see the unfilled quantities, and cancel the unwanted open order. Order Number : Order number Contract : Contract name. The first 3 letters represent the name of coin to trade. The last 6 numbers represent the day of year, month and date in which a futures contract expires(yymmdd). Date : Time the order is submitted Side : Long/Short positions Order Price : The price at which you have submitted an order Order Quantity : The number of contracts that an order has been submitted Filled Quantity : The number of contracts that an order has been completed Leverage : The Leverage you selected to place the order Status : Filled status Pending : The order has not been filled yet Partially filled : The order has been filled partially You can also cancel the order you have submitted in this tab. Action : Cancel your unwanted positions 4) Filled orders All of the filled orders of open/close positions are recorded in this tab. Order Number : Order number Contract : Contract name. The first 3 letters represent name of coin to trade. The last 6 numbers represent the day of year, month and date in which a futures contract expires(yymmdd). Date : Time the order is filled

59 58 Side : Open/Close and Long/Short positions Quantity : The number of contracts an order has been completed Order Price : The price at which an order has been submitted Filled Price : The price at which an order has been completed Leverage : The leverage you selected to place the order Type : Type of order(or close) Limit : Limit is the type of order that you wish to trade at the specified price. Margin Call : Your position has been closed because a Margin Call happens when Maintenance Margin level of 1% has been breached Auto-Liquidation : Your position has been closed because Auto-Liquidation occurs.traders who hold opposing positions will be closed out according to leverage and profit priority. 5) Order History All of the order history is recorded in this tab. Order Number : Order number Contract : Contract name. The first 3 letters represent name of coin to trade. The last 6 numbers represent the day of year, month and date in which a futures contract expires(yymmdd). Date : Time the order is submitted or filled Side : Open/Close and Long/Short positions Quantity : The number of contracts you have traded Order Price : The price at which an order has been submitted Margin : Initial Margin required to open a position(if you are Close position, Initial Margin is not recorded. If the Margin is recorded even though it is in the Close position, it is the case that the Close position is canceled.) Type : Type of order(or close) Limit : Limit is the type of order that you wish to trade at the specified price Margin Call : Your position has been closed because a Margin Call happens when Maintenance Margin level of 1% has been breached Auto-Liquidation : Your position has been closed because Auto-Liquidation occurs.traders who hold opposing positions will be closed out according to Leverage and profit priority. Status : order status New : Submitted order Filled : Filled order Cancel : Canceled order