🐻Trading Pre-launch Futures
Storm Trade kicked off futures trading on cryptocurrencies before they even hit the market. You'll have the chance to predict the success of a new crypto's debut by opening futures positions on it. The traditional model reserved pre-launch securities sales for funds and institutional players. With the emergence of web3, this privilege is extended to all enthusiasts. Pre-launch futures offer a transparent glimpse into the future prices of cryptos before they launch, making the crypto game accessible to all and providing a way to manage risk with a clear view of potential market movements.
Now that we’ve got the basics, let’s dive deeper into in details of trading arrangements.
Gearing Up for Launch
Picking the Winner: We’ve analyzed market trends and pick out the most promising token.
Clear Communication: We’re here to make sure you’re clued in on why getting involved is a smart move. The Storm Trade crew will keep you in the loop with all the updates.
Fair Starting Line: We’ve set a sensible starting price for the token.
Fair Play: From how deep the market is to the range of leverage – we’ve nailed down the trading parameters to ensure the trading runs in a fair and transparent way.
Countdown’s On: Everything’s being prepped for launch, so you’ll know exactly when to get in on the action as we've set a timer on the trading pair.
The Trading Rundown
Lift Off
Launch Time: When the moment arrives, trading kicks off.
Keeping You Posted: We’ll keep you in the know with all the latest.
Heads-Up on Closing: You’ll get a fair warning before trading wraps up, so you’ve got ample time to take a strategically informed decision.
Wrapping It Up
The Final Bell: Trading officially ends at the stated time, putting a lid on any further trading operations.
Calculating PnL: We figure out the final price of the token to work out your wins and losses.
Settling Up: Your collateral comes back to you, adjusted for the outcome of your trades.
Debrief: You’ll get a thorough rundown of how it all panned out, complete with the details of the P&L calculation.
Nitty-Gritty on Profit and Loss
The Starting Blocks
T_trade – The clock starts when the token first hits the scene on the spot market of a centralized exchange (CEX) or through DeDust/StonFi.
Cap_constant – The max supply of the token as announced by the project team.
Cap_variable – How much of the token is out there circulating on the market a week after
T_trade. This number changes and reflects the token’s real-world presence at that time.Cap_expected – The supply we think will be out there, which we use to guess the market cap on the Pre-Launch market. This is what we base our market value predictions on before the token is officially up for grabs.
Note: The project token is the asset in which the futures contract is denominated.
What Could Happen
Scenario 1: The token doesn’t make it to market.
Scenario 2: The token hits the market with a fixed volume of token supply.
Scenario 3: The token makes its debut without a fixed volume of token supply.
Working Out the Token Price
Here’s how we crunch the numbers to get the settlement price, or Price_settle, for a token in USD:
Scenario 1: Straightforward –
Price_settlematches the futures contract closing price in USD.Scenario 2: A bit of basic maths –
Price_settlecomes from the average price in USD during the first week of trading, timesCap_constant, then divided byCap_expected.Scenario 3: Similar to scenario 2, but with a flip –
Price_settleis the week’s average price in USD, timesCap_variable, divided byCap_expected.
Sorting Out the Settlements
The price settlement (Price_settle) is the key to figuring out if you’ve made a packet or taken a bath on your positions. Here’s how it goes down:
Long positions above Price_settle and Short below? - Long positions that went in above the settlement price and short positions that dipped below are up for adjustment. This tweak means a slice of your collateral gets trimmed, in line with how far off the mark you were, taking into account the leverage you were playing with. This pooled pot from the adjustments is what we use to dish out the payouts.
Long below Price_settle and Short above? - On the flip side, long positions that got in below the settlement price and short positions that were above not only get their initial stake back but also a share of the pot. This extra bit is worked out based on the size and entry price of each position.
Spotlight on 1mNOT-F/TON Futures
As an example of our pre-launch products, here's 1mNOT-F/TON, our premier futures position that lets you bet on the future value of NOT, based purely on our intel.
The Fine Print
Leverage: Up to 3x: Striking the perfect balance between beefing up your returns and keeping risks in check.
Open Interest Limit: 200,000 TON
Fees and Charges:
Trading Commission: 1%, fixed. Half goes straight into the Insurance Fund.
Rollover Fee: None of that here.
Funding Rate: Zero.
Minimum Margin Requirement: 12.5%. Dive into your investments with your eyes wide open, guided by strategic market insights.
Lot Size: A cool million 1mNOT-F tokens
Kick-off Price for a Lot: 0.5 TON
Market Cap Dreams: 50 trillion 1mNOT-F tokens
Note to Traders: Just so we’re clear, Storm Trade isn't linked with the NOT coin. This offer is our way to enrich your trading experience, serving up assets and products selected from the market's mood and trends.
And there you have it. We've tried to give you all the necessary information to participate in trading cryptocurrency futures before they hit the market on Storm Trade. Now it’s over to you. Time to make your move.
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