Note on ZEC Price Cap

The 10 XBT/ZEC price cap on ZECZ16 will remain until we officially move the marking to a spot exchange.

How will BitMEX decide which exchange to mark to?

We intend to mark to the single most liquid exchange. Our criteria for an exchange eligible for this marking are as follows:

• Healthy deposits and withdrawals

• Over 1000 ZEC/day volume

The final decision on which spot exchange to mark ZECZ16 to is at BitMEX's discretion and will be announced a full 24 hours before it is active. At that time ZECZ16's mark price will be a combination of the index price and implied basis.

What will happen when ZECZ16 is marked?

ZECZ16 is a cash-settled future that has its own supply and demand. Expect it to trade quite differently than spot, as:

• Zcash is not available for margin trading on any exchange

• Zcash cannot be shorted

• Zcash's mining slow start is causing significant supply constraint

• ZECZ16 settles on Dec 30

When marking is activated, our automatic systems will continue to mark ZECZ16 at significant basis to spot, depending on trading at BitMEX. For our traders, the most significant difference is that ZECZ16 price movements will more closely resemble spot. Announcement of this marking should not be cause to buy or sell ZECZ16.