# BXB Rule Book

BXB now have two types of trading products: Crypto Trading Pair and Crypto Options.

Price Multiple is the amount of base currency we trade for 1 contract. For example, the Price Multiple of BTC/USDT is 0.001, so：

• User actually sells/buys 0.001 BTC for every 1 BTC/USDT contract bought/sold.
• If the user want to buy 2.1 BTC at the price of 7,000 USDT, he/she needs to place 2,100 buy orders in the BTC/USDT market

Price Range is the maximum and minimum price for a new order that can be placed. It is bounded by the last price multiplied by plus or minus 30%. The maximum range then would be 130% of the last price and minimun range would be 70% of the last price. Taking BTC/USDT market as an example, if the last price was 7,000 USDT, then if you were to place an order, the maximum price that the system would allow you to input cannot exceed 9,100 USDT and cannot be lower than 4,900 USDT. This price range though wouldn't affect the orders already in the orderbook. For instance, if you placed an order and the last price was 7,000 USDT, then it suddenly grew to 10,000 USDT, the order with the price of 4,900 USDT would still go through as it was placed at the 7,000 USDT price.

## Crypto Options Contract Rules

### What Are Options?

Options are contracts that grant the right, but not the obligation to buy or sell an underlying asset at a set price on or before a certain date. BXB offers option products with underlying of cryptocurrencies.

An option contract for BTC0730P9000:

• BTC refers to the option underlying, that is, bitcoin;
• 0730 refers to the expiration date;
• P refers to this is a put, C would be a call;
• 9000 refers to the strike price of the option, which is 9,000 USDT, this is the target price to buy/sell the underlying that the buyer locked on the maturity date.
• The BTC option contract for the BXB platform corresponds to a contract size of 0.001 BTC.

### Option Contract Type

We Take BTC Options as examples.

1. BTC Call Option

The BTC Call Option allows the buyer of the contract to benefit from the potential price increase in the underlying instrument. The buyer pays the premium, and he/she has the right to obtain the difference between the settlement price of the relevant underlying instrument and the strike price on the maturity date (if the difference is positive), otherwise no payment will occur. All transactions are settled in USDT.

For example, if you hold a BTC0730C6500 option contract, if the BTC settlement price is 8,843 USDT (higher than 6,500 USDT) at 24:00 on July 30, which is in-the-money at the expiration date, you will receive direct income of 23.43 USDT (= (8843-6500)*0.01). If the bitcoin price is 6,135 USDT (below 6,500 USDT), then it is out-of-money, your return will be 0.

2. BTC Put Option

The BTC Put Option allows the buyer of the contract to benefit from the potential price decline of the underlying instrument. The buyer pays the premium, and he/she has the right to obtain the difference between the strike price and the settlement price of the relevant underlying instrument on the maturity date (if the difference is positive), otherwise no payment will occur. All transactions are settled in USDT.

For example, if you hold a BTC0730P9000 option contract, if the BTC settlement price is 8,843 USDT (below 9,000 USDT) at 24:00 on July 30, which is in-the-money at the expiration date, you will receive direct income of 1.57 USDT (= (9000-8843)*0.01). If the bitcoin price is 9,100 USDT (higher than 6,500 USDT), then it is out-of-money, and your return is zero.

Investors can only buy options, or close their option positions, but cannot short the options. Only BXB authorized market makers can short-sell. The investor's possible losses are limited to the initial investment, and the crypto option contract does not have a forced liquidation price or a margin call.

### Crypto Option Contract Description

BXB's crypto option contracts are European call/put options. Currently we only offer weekly contracts which will be renewed on a weekly basis after the expiratation date.

## Withdraw/Deposit Rules

The exchange currently supports 4 types of cryptocurrency (including BXT, our Token), and there is no specific limit on the amount of deposits.

The cutoff time for withdrawals is 8:00 UTC. Shortly after that, transactions will be sent to the address you specified.

BXB stores all funds in cold multi-signature wallet

Even in the event of a full system compromise, including web servers, trading engine, and database, there would not be enough keys available to an attacker to steal funds.

Additionally, each and every withdrawal on BXB is audited by hand by at least two employees before sending. No private keys are kept on any cloud server and deep cold storage is used for the bulk of funds.

The rules for withdrawal are as follows:

If the user needs to withdraw above the specified limits, the user needs to upload a photo of themselves holding a piece of paper that displays the following:

1. Documents used in KYC (ID or Passport)
2. Today's date clearly written out
3. Clear Front face