Pre-Launch Futures
Storm Trade has launched futures trading for cryptocurrencies before they hit the market (a.k.a. pre-launched futures). Now you can predict the success of a new cryptocurrency’s debut by opening futures positions on it. The traditional model of selling securities before their official launch was only available to institutional investors and funds. With the advent of Web3, this privilege is now accessible to all enthusiasts. Pre-launched futures allow you to make informed predictions about the future price of cryptocurrencies before they enter the market, making cryptocurrency trading available to everyone and providing a way to manage risk with a clear view of potential market movements.
Now that you understand what pre-launched futures are, let’s take a closer look at how the trading process works.
🚀 Preparing for Launch
Asset Selection: We analyze the market and choose tokens with the most promising opportunities.
Engagement Plan: Our goal is to clearly and simply explain the benefits of participation. The Storm Trade team will keep you updated on all news and changes.
Starting Price: We set a reasonable starting price for the token, based on preliminary market analysis, expected tokenomics, and market participant involvement.
Market Mechanics: From market depth to leverage ranges, we define all trading parameters to ensure fairness and transparency.
Countdown to Start: We define the exact start date for trading and set up a countdown timer on the trading pair in the terminal.
📈 Trading Process Stages
Start
Launch: Trading begins on the selected date.
Information Support: We will keep you informed of all news.
Closing Alert: You will be notified in advance of the end of trading, giving you enough time to make the right decision based on your strategy.
Final Phase
Trade Stop: Official closure of trading operations at the designated time, making further transactions on open positions unavailable.
Profit and Loss Calculation: We determine the settlement price of the token to calculate your profits and losses.
Settlements: We return your margin, adjusted for profits and losses.
Summary: A full overview of the results with a detailed PnL calculation will be provided.
💰 Detailed Profit and Loss Calculation
Initial Data
T_trade — The moment when the first transaction with the token occurs on the spot market of a centralized exchange (CEX) or through DeDust/StonFi. From this point, the process of determining the token's settlement price begins.
Cap_constant — The fixed maximum token supply announced by the project team.
Cap_variable — The circulating supply of tokens 7 days after the start of trading
T_trade. This value is dynamic and reflects the actual state of token circulation at that time.Cap_expected — The expected token supply used to calculate the market capitalization in the Pre-Launch market. This metric serves as the basis for analyzing and forecasting the token's market value before its official launch.
Note: The project’s token is the asset in which the futures contract is denominated.
Possible Scenarios
Option 1: The project's token does not launch on the market.
Option 2: The project’s token launches with a fixed token supply.
Option 3: The project’s token launches with an undefined token supply.
Determining the Contract Settlement Price
Let’s break down how we calculate the final settlement price, or Price_settle, for one 1mNOT-F contract in USD:
For Option 1: It’s simple —
Price_settleis the closing price of the futures contract in USD.For Option 2: In this case,
Price_settleis the result of multiplying the average price in USD during the first week of trading byCap_constantand dividing byCap_expected.For Option 3: Similar to Option 2, but with a twist™ —
Price_settleis the average price in USD during the first week of trading, multiplied byCap_variable, and divided byCap_expected.
Settlement Process
The settlement price (Price_settle) is the key indicator used to determine the final profit or loss on positions. Settlements are made as follows:
Long positions above Price_settle and Short positions below? Long positions with an entry price higher than the settlement price and short positions with an entry price lower than the settlement price will be adjusted. This adjustment will reduce the margin proportionally to the difference between the entry price and the settlement price, considering the leverage used.
Long below Price_settle and Short above? Conversely, long positions where the entry price is lower than the settlement price, and short positions with an entry price above, not only return the investor’s initial margin but also provide additional profit. This profit is a share of the previously mentioned total volume, calculated based on the volume and entry price of each specific position.
📊 Example: 1mNOT-F/TON Futures
Introducing 1mNOT-F/TON, our first futures position that allows you to forecast the future price of NOT based solely on our data.
General Characteristics
Leverage: Up to 3x: Finding the optimal balance between maximizing returns and managing risks.
Open Interest Limit: 200,000 TON.
Fee Structure:
Trading Fee — 1%, fixed, with half of the total amount going to the Insurance Fund.
Rollover Fee — None.
Funding Fee — None.
Minimum Margin Requirement (MMR): 12.5%. When investing, make thoughtful decisions based on strategic market analysis.
Lot Size: 1 million 1mNOT-F tokens.
Initial Lot Price: 0.5 TON.
Maximum Expected Market Capitalization: 50 trillion 1mNOT-F tokens.
Attention Traders: Storm Trade is not affiliated with the NOT token. This offering reflects our goal to enrich your trading experience by providing assets and products selected based on comprehensive market trend and condition analysis.
🏄 Now you have all the necessary information to participate in pre-launch cryptocurrency futures trading on Storm Trade.
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