The Status Network is an open source messaging platform and mobile browser to interact with decentralized applications that run on the Ethereum Network.
It is scheduled for an ICO at 14:00 UTC on June 17, 2017.
On BitMEX, the SNT derivative is in the form of a Futures Contract and allows traders to speculate on the future value of the Status / Bitcoin (SNT/XBT) exchange rate. Traders need not have Status to trade the futures contract, as it only requires Bitcoin as margin.
The SNT futures’ underlying is the SNT/XBT exchange rate on Poloniex as recorded in the .SNTXBT Index. The futures are quoted in Bitcoin and all margin and PNL calculations are denominated in Bitcoin.
|XBT Contract Value||Multiplier * Futures Price * 1 SNT|
|USD Contract Value||XBT Contract Value * XBTUSD|
|PnL Calculation||# Contracts * Multiplier * (Exit Price - Entry Price)|
Traders who think that the price of SNT 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 SNT 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.
SNT 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 SNT lists on a secondary spot market. Advance notice will be given before the limits are removed, and SNT futures are allowed to trade freely.
The Status platform is still under development. It is expected that Status tokens will be available for trading in the secondary market by the expiry date of SNTN17, which is 28 July 2017 12:00 UTC.
If SNT/XBT trading has not begun on either Bittrex, Kraken, or Poloniex by 27 July 2017 12:00 UTC, SNTN17’s settlement price will be the ICO price, described below.
BitMEX will announce the reference exchange by 27 July 2017 12:00 UTC if SNT/XBT has begun trading on the secondary market by this date. The SNT futures contracts will settle on the .SNTXBT30M Index Price.
ICO Price = .ETHXBT30M Index Price / 10,000
A trader wants to goes long 10 XBT of SNT futures contracts. SNTN17 (the monthly SNT 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