USDC Insurance Fund

(Avg. Entry Price * MM Rate + Bankruptcy Price * 0.075% ) * Contract Size 


Long: 

Bankruptcy Price = Avg. Entry Price * (1 - 1 / Leverage) / (1 + Taker Fee Rate) - Available Balance / [(Contract Size * (1 + Taker Fee Rate)]

 Short: 

Bankruptcy Price = Avg. Entry Price * (1 + 1 / Leverage) / (1 - Taker Fee Rate) + Available Balance / [Abs (Contract Size) * (1 - Taker Fee Rate)]

The trader bought a BTC call option with a strike price of $40,000, and paid $2,500 as the premium. He now has the right to buy 1 BTC at a price of $40,000. 

Let's assume that the price of BTC is $46,000 and the delivery price of the contract is $46,000 on the expiration date. 

In this case, the seller will pay the trader $6,000 on the expiration date. Because the trader paid $2,500 as the premium, his profit amounts to $3,500 (6,000 - 2,500). 

If the price of BTC is lower than $40,000 on the expiration date, the call option will expire worthless, and the trader will lose the premium paid. This delivery will happen automatically on Bybit, and the call option cannot be exercised by the trader before the expiration date.

The trader bought a BTC put option with a strike price of $30,000, and paid $2,000 as the premium. He now has the right to sell 1 BTC at a price of $30,000. 

Let's assume that the delivery price of the contract is $27,000 on the expiration date. 


In this case, the trader will receive $3,000 on the expiration date. Because he paid $2,000 as the premium, his profit amounts to $1,000 (3,000 - 2,000). 


If the delivery price is higher than $30,000 on the expiration date, the put option will expire worthless.

The Options Contracts will be cash settled on the expiration date. On Bybit, this delivery will happen automatically.

8AM (UTC) on the stipulated expiration date

Initial Margin is the total margin required to open a position. Please refer to the Help Centre article for more details.

Maintenance Margin is the total margin required to maintain a position. Please refer to the Help Centre article for more details.

The mark price is the current value of an Options Contract calculated using Bybit's risk control system. Bybit will set hard limits on the minimum and maximum implied volatility allowed.

Highest Bid Price = Options Mark Price + {maxBuyFactor} * Index * Max[1 , 4 * Abs(Delta)]
 
Lowest Ask Price = Max{tickSize}, Options Mark Price - {minSellFactor} * Index * Max[1 , 4 * Abs (Delta)]}

Trading Fee 

Taker {takerFeeRate} / Maker {makerFeeRate} 

Trading fees will not exceed {maxProportionOfTransactionInOrderPrice} of the Option's position value. 

Delivery Fee 

{basicDeliveryFeeRate} 

Delivery fees will not exceed {maxProportionOfDeliveryInOptionValue} of the Option's position value. 

Liquidation Fee 

{liquidationFeeRate} 

Liquidation fees (exclusive of trading fees) will be automatically added to the insurance fund.

The contract multiplier for Bybit Options is 1. Each contract has only 1 {baseCoin} as the underlying asset.

Premiums for {baseCoin} Options are quoted at a minimum tick size of {tickSize} USDC.

The Options Contracts will be exercised on the expiration date in USDC. The delivery price is calculated using the average of the Bybit {baseCoin} Index over the last 30 minutes before the expiration of the contract. The delivery amount in USDC equals the difference between the strike price and the settlement price of the contract if it expires in the money. The Bybit {baseCoin} Index tracks the spot price of {baseCoin}. It's derived from a weighted average of quotes on multiple spot exchanges — Kraken, Gemini, Coinbase Pro, Bittrex and Bitstamp — and has been adjusted by their data usability.

Depends on the price of {baseCoin}, which may vary between ${minStrike} to ${maxStrike}.

{symbolName} Contract Details

USDC

The Options Contracts are priced in USDC. 

Implied Volatility 

The Options Contracts can also be priced in implied volatility (IV). IV orders are updated once every 6 seconds to keep the IV at a fixed value.

The trader sells a call option with a strike price of $38,000. He receives $1,500 as the premium. 

Let's assume that the delivery price of the contract is $37,999 on the expiration date. 

The call option will expire worthless. The trader will collect a premium of $1,500, while the buyer will lose the $1,500 premium paid.

The trader sells a put option with a strike price of $37,000. He receives $1,800 as the premium. 

Let's assume that the delivery price of the contract is $37,001 on the expiration date. 

The put option will expire worthless. The trader will collect a premium of $1,800, while the buyer will lose the $1,800 premium paid.

The Options Contracts will be exercised on the expiration date in USDC. The delivery price is calculated using the average of the Bybit {baseCoin} Index over the last 30 minutes before the expiration of the contract. The delivery amount in USDC equals the difference between the strike price and the settlement price of the contract if it expires in the money. The Bybit {baseCoin} Index tracks the spot price of {baseCoin}. It's derived from a weighted average of quotes on multiple spot exchanges — OKX, FTX, Coinbase Pro and Binance — and has been adjusted by their data usability.

In-the-money, at-the-money, and out-of-the-money strike prices will be listed. New strike price will be listed when the underlying trades above the current highest strike price or below the current lowest strike price.

Each contract name consists of the underlying, expiration date, strike price, and the contract type (C indicates a call option and P indicates a put option). 

For instance, BTC-29OCT2021-48000-C refers to a call option with a strike price of 48,000 USDC, expiring on Oct. 29, 2021.

The funding fee is exchanged directly between buyers and sellers every {hour} hours. It ensures that Bybit's last traded price is anchored to the reference index price.

(Avg. Entry Price * IM Rate + Bankruptcy Price * 0.075% ) * Contract Size 


Long: 

Bankruptcy Price = Avg. Entry Price * (1 - 1 / Leverage) / (1 + Taker Fee Rate) - Available Balance / [(Contract Size * (1 + Taker Fee Rate)]

 Short: 

Bankruptcy Price = Avg. Entry Price * (1 + 1 / Leverage) / (1 - Taker Fee Rate) + Available Balance / [Abs(Contract Size) * (1 - Taker Fee Rate)]

Mark price can be considered as a price that reflects the real-time spot price on major exchanges. It may temporarily deviate from the spot index to protect traders against market manipulations. 

Mark Price = Index Price + 30-Second Exponential Moving Average of (USDC Perpetual Market Price - Index Price). 

The USDC Perpetual market price will be the last traded price if it falls between the current best bid and the best ask. If the last traded price is lower than the best bid, the market price will be the best bid. If the last traded price is higher than the best ask, the market price will be the best ask.

Unrealized profits and losses will be settled every {hour} hours for higher capital efficiency.

{symbol} futures contract will expire on {nextTime}. 1 contract is worth 1 USD.

{symbol} Futures Contract Details

This contract expires at {date}, and settles at .{baseSymbol}30M index price as of {date}.

The .{baseSymbol} index tracks the spot price of {coin}/USD and is updated every second.

{baseSymbol} perpetual contract and {baseSymbol} futures contract use this index.

Futures Contracts

USDT Equivalent

Real-time Weightage

Bybit uses the interest rate and the premium index to calculate the funding rate through Time-Weighted-Average-Price (TWAP) over the series of minute rates. 

A {coin}USD Perpetual Contract has no expiration date. Each contract is worth 1 USD in {coin} . Funding occurs every {hour} hours, and the next funding will take place at {time} UTC.

Contract Details

The .{coin}USDPI index tracks the premium / discount of {coin} perpetual contracts relative to the mark price per minute.

.{coin}PI: {coin} Premium Index

The {coin}USD index tracks {coin} spot prices, with a frequency of every second. The {coin}USD latest price index is shown on multiple pages of Bybit, as is the current {coin} spot price.

The index represents the market consensus price of the underlying asset , so its price is derived from multiple spot exchanges. The reference exchange price that has passed the data availability verification will be weighted to obtain the final index. For the source and weight of the quoted exchanges, please refer to the "Index Price Component Breakdown" below.

Learn more about the validation of the data availability and calculation of 

.{coin}: {coin} Spot Index

Large Order(s)

Please be aware that in the event of extreme price movements or deviation from the price index, Bybit will undertake additional protective measures, including but not limited to:

Premium Index 

.{symbol}PI Premium Index

.{symbol}PI Index Details

The .{symbol}PI index tracks the premium / discount of {symbol} perpetual contracts relative to the mark price per minute.

TP/SL Price Protection

References

.{symbol} Index

.{symbol} Index Details

The {symbol} index tracks the average spot price of {coin}/USDC and is updated every second.

The {symbol} index tracks the average spot price of {coin}/USDT and is updated every second.

This index reflects the consensus price of the underlying asset, and its price is derived from multiple spot exchanges. The reference prices that pass the data availability validation will be weight adjusted to derive an index price. For the source and weight of each reference price, please refer to the ‘Index Component Breakdown’ below.

Margin Parameters