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Hashrate US Dollar Petahash Futures

Term	Value
Product Name	Hashrate US Dollar Petahash Futures
Product Code	HUP
Contract Size	1 petahash per second for 30 days
Price Quotation	US Dollars per BTC per petahash per second per day
Tick Size	$0.25 per petahash per second per day
Tick Value	$7.50 per contract
Price Band Variation	$10
Price Limit	$40
Position Limit	20000
Reportable Position Level	25
Margin	US Dollars
Settlement Method	Financial
Settlement Price	Rule 517 - Settlement price is fixed according to the Luxor Hashrate Methodology
Options Product Code	N/A
Options Exercise Style	N/A
Options Strike Price Listing Interval	N/A

Hashrate Settlement Price Calculation

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: BTC/USD Conversion Price

To convert to a USD denominated price, the BTC/USD price is implied from the Exchange's BUS futures curve:

B_s = F_P - (B_FP / B_Ft) × F_Ft

Where:

B_s = BTC/USD Conversion Price
F_P = Pricing contract price
B_FP = Back-Front month spread price
B_Ft = Time between front and back month contracts, in days
F_Ft = Time to front month expiration, in days

Note: The Exchange has discretion to select the most liquid and representative fair value Front and Back month contracts. These legs may not necessarily be consecutive contract months. The Exchange computes each contract month's price according to the contract's settlement price rules.

Step 3: USD Denominated Hashrate Price

HP_usd = HP_btc × B_s

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)

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