The platform is operated by Quedex Limited, a Gibraltar-registered company. Get to know our
company, its regulatory status and the management team at the about page.
What does it mean that Quedex is in live beta?
Although we are currently in the live beta phase, the platform is fully operational, bitcoin deposits and
withdrawals are possible and full trading functionality is available. You can check it yourself by registering
and starting to trade on Quedex!
Meanwhile, the user interface still may undergo constant changes as we improve the ease of trading at Quedex.
As we are adding new features, downtime may be a bit more frequent as well.
We are also looking for feedback - please let us know what are you looking for in a futures and options trading platform
and write to us at email@example.com.
Is Quedex regulated?
Quedex operates under the laws of Gibraltar where blockchain regulations came into force
starting 1st January 2018 and Quedex is covered by the transitional arrangements. For
details see the about page.
Do you have an affiliate program?
Yes! If you like our platform and would like to recommend us further, have a look at our
affiliate program. You will get a percentage share of trading commissions
generated by those who you refer, while they will get a discount for all trading fees.
How do I learn trading on your platform?
We provide tutorial articles and videos to help you familiarize with our platform and learn
new trading ideas. They are available in the Tutorials section.
What is the Session Passphrase you require?
This passphrase is used to encrypt your private PGP key which is used to communicate with
the exchange engine. It's very secure because it never leaves you browser (it decrypts the
key locally). To learn more visit security.
What order types are supported?
The orders you may submit are limit orders. A limit order has the following characteristics:
It's either a BUY or SELL order.
It has two parameters: quantity - the amount you want to buy or sell and price - the order will be executed at this price or better.
It does not expire, unless the instrument is no longer active.
It may be cancelled.
During continuous trading, the orders are matched with price then time priority. However, the orders are matched differently during the auction.
During auction, you may also sometimes see a market order in the order book. It does not have a price limit - it will be executed
at any price available on the other side of the order book. Market orders are placed automatically by the liquidation engine to
liquidate a position.
Are there any fees?
We employ a maker/taker scheme of trading fees - the current values can be found at the Fees page.
There are no deposit or withdrawal fees.
How does the session schedule look like?
Every day, the exchange transitions between the following trading states:
Continuous Trading 8:20 - 7:55 UTC on the next day
How are the QDX Spot, Settlement indices calculated?
We calculate average BTCUSD exchange rate from multiple exchanges. The exact description is
available in the documentation of settlement.
How to become a Liquidity Provider (Market Maker) on Quedex?
Every market participant can provide liquidity on our platform. Provision of liquidity
is encouraged by our maker/taker scheme of fees which includes rebates for
maker orders. There are further fee discounts and rebates available for everyone willing to
provide deeper liquidity - please contact us to discuss.
How are options quoted? If I see a price of 0.00000800 BTC what does it mean?
You may deposit BTC to an address assigned to your account. Deposits go straight to our Cold Wallet.
After reaching 3 confirmations and additional verification (which is done immediately, but in some cases
can take up to several hours) your funds are available for trading.
How can I withdraw? When will I receive the funds?
You may withdraw to the address of your choice via our web app when logged in.
The amount has to be at least 0.01 BTC. Submitted withdrawal requests await manual verification and signing in our
Cold Wallet. The funds requested for withdrawal are locked and not available for trading.
Withdrawals are processed at least once a day after 08:00 UTC, and are subject to both automated
and manual checks. You will receive your funds after the withdrawal transaction is broadcast to the
BTC network after signing in our Cold Wallet (you will receive email notification).
When and how are positions liquidated?
The positions are liquidated if your Balance (after adding unsettled profits or losses and deducing
pending withdrawals, order margin and order fees) of that account
falls below minimum maintenance margin requirement. If your balance (adjusted as before) falls below initial margin
level, you will get a margin call, i.e. you will be notified to deposit more funds or close your positions.
During liquidations, all pending orders are cancelled. If that doesn't bring free balance above zero,
all open positions are closed with market orders. If these orders would cause significant price jumps,
auction is triggered. Whatever remains from your maintenance margin may be transferred to the insurance fund.
When do socialised losses come into play?
Systemic losses can occur if the trader's orders are liquidated at a price resulting in a negative
balance (after including profits or losses accrued during auction), which can only occur at the end
of the auction. Our innovative multi-tier risk management system ensures that socialization of those
systemic losses is rare and not severe:
First tier - swift liquidation via market orders
Second tier - balancing auction, which garners volume necessary to handle large liquidations
Third tier - insurance fund to cover any resulting systemic losses that could arise during auction
Fourth and final tier - socialization of remaining losses, which comes into play only when former
three tiers are passed.
What is auction?
The auction is an additional market model (next to continuous trading, popular on other platforms),
which focuses on maximizing traded volume and on price stability. This is a time-tested solution
(applied by e.g.
London Stock Exchange,
Tokyo Securities Exchange, Osaka Derivatives Exchange, etc.)
that allows to obtain robust settlement price and to prevent cascading margin calls or market
During the Auction, orders are accepted, put in the order book, but not immediately
matched - instead, all matching occurs at the end of the auction.
The algorithm works as follows:
For each price, the potentially traded volume is calculated. Trade volume is the lesser value of
the two: cumulative buy volume and cumulative sell volume, for a given price.
The price maximizing traded volume is selected as the Theoretical Auction Price.
If the price is not unique, a price with the minimum absolute difference between cumulative buy
volume and cumulative sell volume is selected. If the price is still not unique, a price closest
to the last price is selected.
After 5 minutes, the auction ends and the last Theoretical Auction Price is set as the Auction
Price, and orders are matched at that price. All orders with a price better than the Auction Price
will be matched in full, orders exactly at the Auction Price will be matched according to time
When (and why) is the balancing auction triggered?
Auction is triggered when a liquidation order thrown on the market would cause a significant price move. This means that
volatile market moves that aren't caused by liquidation and smooth liquidations will never trigger an auction.
The auction prevents uncontrolled (i.e. not caused by the underlying market) price moves that may
result from liquidations, market manipulation, &c. Furthermore, the auction serves as a circuit
breaker for cascading liquidations - it gives market time to garner sufficient liquidity to absorb
What if there is a sudden market move of 20% and the auction gets triggered? Will I be able to protect myself from further losses?
First, if the price would drop smoothly (no cascading margin calls), then no auction
would happen and all positions could be closed easily during continuous trading. The parameters of
the auction triggering are tuned in such a way not to impede normal market conditions.
Second, the exchange uses liquidations - and auction if these are very rapid - to limit the systemic
losses, just as individual traders may want to jump out of their losing positions.
For the exchange, it is better to trigger the auction in that case, in comparison to allowing the
price to crash (or squeeze). It is preferable to cut losses swiftly, in particular when auction
enables enough volume to pick the liquidation orders, than to keep the positions open when they
cannot be liquidated without systemic loss.
The situation (and interests) of the exchange and individual traders is the same. The auction is
beneficial to the exchange itself as a form of stop loss, and the more so for a single trader who
hopes to get out at the best price! In addition, it is obviously in the interest of traders not to
have any profit clawbacks or forced liquidations.
Of course, it takes more time to get out of the position when auction occurs in comparison to
continuous trading. However, any alternative socialized losses system does not allow to get out of
the position until final settlement (or rebalance)! If the exchange keeps the positions opened when
these cannot be liquidated at positive balance, you have to wait much, much longer - until the
contract has settled or has been rebalanced. Until then, your profits can always be eaten by a
Will the auction help me get out of a multi-leg position consisting of multiple futures and options?
Yes! It is much easier to close multi-leg futures and options positions when market is being balanced.
Single options contracts are closely related to one another, and options as a whole are connected
with futures markets.
Even if the liquidation or stop loss was almost immediate, each leg (each single contract) would
put pressure to other connected instruments, and the final price for the whole position would be
The balancing auction allows to disperse that pressure evenly on each leg simultaneously, and to
gather necessary supply from the opposite side of the order book.
As a side note, commonly employed liquidation systems that use limit orders (instead of market orders and auction) are
very ill-suited to managing risk of complex options positions.
These alternative systems can easily lead to situation where only a part of a multi-leg option position gets
liquidated, the other getting stuck in the orderbook and waiting for socialization of losses. This
will likely lead to an increase of the overall position exposure to the market, as multi-leg options
positions may carry less risk than each leg separately. In consequence, systemic losses will be
greater in comparison to no liquidation at all!
They could be easily manipulated. An attacker can manipulate the price of a less liquid leg,
forcing liquidation of the whole position. With auction in place, the attacker will be unable to
sufficiently manipulate the illiquid option or will not be able to benefit from the manipulation,
as others could pick up liquidations.