Overview
Derivatives OTC is designed for users with multiple futures/large capital trading needs who want to avoid market slippage. Flexible options combinations are currently supported, and futures hedge legs can be created.
All tools must share the same quote cryptocurrency. A single structure can contain up to 20 legs with unrestricted ratios between legs, supporting custom strategies.
Options RFQ combinations
Each combination requires specifying the expiration date, strike price, and amount for every option leg. Custom combinations support editing the direction of each leg.
Call spread structure
Example: A bull call spread involves buying a call option with a lower strike price and selling another call option with a higher strike price at the same time to reduce costs, but it caps the maximum profit.
Type | Name | Side | Amount | Price |
Options contract | BTC-8NOV25-100000-C | Buy | 30 | - |
Options contract | BTC-8NOV25-110000-C | Sell | 30 | - |
Hedge leg
Each RFQ structure allows adding one hedge leg, which can be perpetuals or delivery futures. The options structure can be hedged with any futures denominated in the same cryptocurrency.
Example: Option-futures hedge
For example, on January 1, 2025, a trader performed the following:
Type | Name | Side | Amount | Price |
Options contract | BTC-8NOV25-100000-C | Buy | 25 BTC | - |
Perpetual futures hedge | BTC-PERP | Sell | 12.5 BTC | 105,000 |
Market model
Block RFQ follows the standard RFQ mode:
- Taker: Specify amount and send RFQs to all makers. (Multi-maker selection will be supported soon.)
- Maker: Submit one-sided or two-sided quotes for an amount at or above the minimum OTC size.
- Transaction: Taker fills orders by matching quotes only at the requested amount. The filled transaction is recorded as OTC and subject to OTC fees.
- Expiration: RFQs expire automatically if unfilled within 5 minutes.
Minimum trading unit and futures specifications
RFQ trades follow the same futures specifications as regular on-exchange trading, subject to the minimum OTC trade size.
Fee
- Trading fee = min(Σ Option buy fees, Σ Option sell fees) + Futures hedge leg fees
Counterparty visibility
- Counterparties remain anonymous after RFQ execution.
Makers
The platform reviews makers' access permissions. Only eligible makers are allowed to quote.
Matching rules
Quote types
- All or none (AON) order: Must either be filled in its entirety or not at all. Partial fills are not supported, yet makers can revise prices after submitting quotes.
Quote visibility
- Takers can view the latest buy and sell quotes. Makers' initial quotes will be visible to Takers after a 5-second delay.
Pricing unit
- For custom structures, the system calculates the minimum integer ratio as the pricing unit.
- Makers must quote in compliance with this ratio. Ratio = Total amount / Greatest common divisor.
- The ratio must be an integer, displayed as the "ratio" for each leg in the combo. Ratio × Combo size = Amount per leg.
- If any value contains decimals, multiply all values by 10 until all are integers.
- Combo order amount (size) = Amount per single leg / Corresponding leg ratio.
Example 1:
Find the greatest common divisor
Leg | Quantity | Side |
Leg A | 48 | Buy (+1) |
Leg B | 9 | Sell (-1) |
The greatest common divisor is 3. The ratio of each combo leg and the combo quantity are as follows:
Leg | Calculation | Ratio |
Leg A | 48 / 3 | 16 |
Leg B | -9 / 3 | -3 |
Amount | 48 / 16 | 3 |
Example 2:
Find the greatest common divisor
Leg | Amount | Side |
Leg A | 48 | Buy (+1) |
Leg B | 9.1 | Sell (-1) |
All legs are multiplied by 10 and the greatest common divisor is 1. The ratio of each combo leg and the combo quantity are shown below:
Leg | Calculation | Ratio |
Leg A | 48 × 10 | 480 |
Leg B | 9.1 × 10 | 91 |
Amount | 48 / 480 | 0.1 |
Hedge leg
- Takers can add a perpetual or futures leg for delta hedging.
- Hedge leg prices are pegged to the mark price and must be within ±1% of it.
- Allocation method: Hedge amount is calculated by negating the static delta of the other option legs, then rounding up.
Margin requirement
OTC margin rules apply. Margin will be reviewed at three stages: RFQ creation (by taker), quote submission (by maker), and trade execution (by both parties).
- The taker can only create an RFQ if buying or selling at the mark price doesn't push their initial margin above the limit.
- Upon maker's quote submission, the margin will be validated based on quote direction and price. Quotes can only be submitted if post-trade total positions won't trigger initial margin shortages, or the combo reduces risk exposure even when initial margin exceeds the limit.
- Both parties will undergo another margin check at trade execution. The trade can be rejected if market volatility results in insufficient margin.
Note: If a maker's quote is rejected at execution, the taker's RFQ remains open. The taker can wait for updated quotes and try executing the trade again.
Multi-leg quotes
The platform provides a tool to auto split single-leg price for custom and strategy combo quotes.
In addition, the platform ensures that buy quotes will not exceed the maximum buy price, and sell quotes can't fall below minimum sell price. Quotes that deviate far from the mark price will be rejected by the platform as invalid.
Example for price splitting:
Spread is allocated to the first leg first. Any remaining spread goes to subsequent legs;
If the spread can't be evenly divided by the combo ratio, buy prices are rounded up to the nearest minimum tick, and sell prices are rounded down to the nearest minimum tick.
Example:
Combo mark price: -2,011.6 USDT; Maker quote: -2,120.2 USDT; Spread: -108.6 USDT; and Minimum tick size for combo: 0.1 USDT
| Combo mark price | Maker quote | Spread |
| (2,011.60) | (2,120.20) | (108.60) |
| Single leg price | Single leg quantity | Execution price adjustment | Allocated spread | |
| Buy | 2,954.00 | 1.00 | 2,845.40 | (108.60) |
| Sell | (2,482.80) | 2.00 | (2,482.80) | 0.00 |
| Total executed combo value | (2,120.20) |
Combo mark price: 16,555 USDT; Maker quote: 16,560 USDT; Spread: 5 USDT; and Minimum tick size for combo: 5 USDT
| Combo mark price | Maker quote | Spread |
| 16,555.00 | 16,560.00 | 5.00 |
| Single leg price | Single leg quantity | Execution price adjustment | Price rounded to an integer multiple of tick size | Allocated spread | |
| Buy | 7155.00 | 3.00 | 7156.67 | 7155.00 | 5.00 |
| Sell | -4910 | 1.00 | (4,905.00) | (4,905.00) |
| Total executed combo value | 16,560.00 |