Qtum is a platform to execute smart contracts and decentralised applications, similar to that of Ethereum. However it is built on Bitcoin’s UTXO transaction model and employs a Proof-of-stake consensus mechanism that is more practical for business adoption. You can read further about Qtum here: https://qtum.org/en/
On BitMEX, the QTUM derivative is in the form of a Futures Contract and allows traders to speculate on the future value of the Qtum / Bitcoin (QTUM/XBT) exchange rate. Traders need not have Qtum to trade the futures contract as it only requires Bitcoin as margin.
The QTUM futures’ underlying is the QTUM/XBT exchange rate on Bittrex as recorded in the .QTUMXBT Index. The futures are quoted in Bitcoin and all margin and PNL calculations are denominated in Bitcoin.
|XBT Contract Value||Multiplier * Futures Price * 1 QTUM|
|USD Contract Value||XBT Contract Value * XBTUSD|
|PnL Calculation||# Contracts * Multiplier * (Exit Price - Entry Price)|
Traders who think that the price of QTUM will rise will buy the futures contract. Conversely, traders who believe the price will drop will sell the futures contract.
All margin is posted in Bitcoin, that means traders can go long or short this contract using only Bitcoin. The QTUM futures contracts feature a leverage of up to 2x.
For example, to buy 10 Bitcoin worth of contracts, you will only require 5 Bitcoin of Initial Margin.
QTUM futures may only move 25% above (Limit Up) or below (Limit Down) the previous session close. Each session is 2 hours in length, resetting on every even hour UTC time. Buy or sell orders may not be placed above or below the Limit Up or Down price respectively. The Limit Up and Down percentage will be removed shortly before or after QTUM lists on a secondary spot market. Advance notice will be given before the limits are removed, and QTUM futures are allowed to trade freely.
The Qtum platform is still under development. It is expected that Qtum tokens will be available for trading in the secondary market by the expiry date of QTUMU17, which is 29 September 2017 12:00 UTC.
If QTUM/XBT trading has not begun on either Bittrex, Kraken, or Poloniex by 28 September 2017 12:00 UTC, QTUMU17’s settlement price will be the ICO price, described below.
BitMEX will announce the reference exchange by 28 September 2017 12:00 UTC if QTUM/XBT has begun trading on the secondary market by this date. The QTUM futures contracts will settle on the .QTUMXBT30M Index Price.
11,156.766 XBT and 77,081.031 ETH were tendered for 51,000,000 QTUM.
ICO Price = Sum( 11,156.766 XBT, 77,081.031 ETH * .ETHXBT30M Index Price) / 51,000,000
A trader wants to goes long 10 XBT of QTUM futures contracts. QTUMU17 (the quarterly QTUM futures contract) trades at 0.0200 XBT. As the leverage is 2x, the trader only needs 5 XBT of margin for this trade.
The trader must buy 500 contracts: 10 XBT / (0.0200 XBT * 1).
A few days later, the price rises to 0.0250 XBT and the trader sells all their contracts.
The trader’s profit will be: 500 * 1 * (0.0250 - 0.0200) = 2.5 XBT