Hashrate Pricing

The Settlement Price for Hashrate US Dollar Petahash Futures follows the Luxor Hashrate Methodology, which converts Bitcoin-denominated hashrate to USD through a multi-step process.

Step 1: Bitcoin Hashrate Price Calculation

HP_btc = (SR_btc + avg(TXF_btc)) / HR

Where:

• HP_btc = Hashrate Price in Bitcoin (BTC per PH/s per day)
• SR_btc = Block Subsidy Rate, in bitcoin
• TXF_btc = Transaction Fees, in bitcoin, for previous 144 blocks
• avg(TXF_btc) = Average transaction fees over the calculation period
• HR = Network Hashrate, PH/s (Petahash per second)

Step 2: Bitcoin Spot Price Calculation

The BTC/USD Spot Price (S_btc) is computed using the Exchange's Implied Spot Pricing methodology, which derives a spot price from the futures curve by calculating the basis between front and back month contracts.

Step 3: USD Denominated Hashrate Price

HP_usd = HP_btc × S_btc

HP_usd = [(SR_btc + avg(TXF_btc)) / HR] × [F_P - (B_FP / B_Ft) × F_Ft]

Where:

• HP_usd = Hashrate Price in USD per petahash per second per day

Step 4: Final Settlement Price

The futures Final Settlement Price is the average of all Hashrate prices for the duration of the contract month. This constitutes continuous delivery over the contract month:

HP_fs = (1/n) × Σⁿ_i=1 HP_usd,i

Where:

• HP_fs = Final Settlement Price
• n = 4320 (number of hashrate price calculations per month: one every 10 minutes for 30 days)
• HP_usd,i = USD hashrate price at calculation period i

Example Calculation

For the Bitcoin US Dollar Hashrate for 2023-06-30:

HP_usd = $77.81 = [(6.25 + 0.21745818) / (1.01883 × 10¹⁶)] × [$30,805 - ($525/91) × 89]

Where:

• SR_btc = 6.25 BTC (block subsidy)
• avg(TXF_btc) = 0.21745818 BTC (average transaction fees)
• HR = 1.01883 × 10¹⁶ H/s (network hashrate)
• F_P = $30,805 (front month price)
• B_FP = $525 (back-front spread)
• B_Ft = 91 days (days between contracts)
• F_Ft = 89 days (days to front expiration)