Crix.io is a cryptocurrency trading platform under the Crix Software umbrella and was founded by Dmitry Koval in 2014.
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Crix: Niche Products for Bitcoiners
“Our mission,” said Koval, “is to contribute to the community and ecosystem by creating the best niche products such as exchange-traded futures contracts suitable for hedging and high-leveraged trading.”
Crix’s development is focused on three pillars: simplicity, security and performance.
The system provides traders with a simple user interface and transparent trading rules.
“At the same time, as all our derivatives are collateralised and settled in bitcoins, we are able to maintain anonymity of the traders which is an important value for the community,” said Koval.
Crix’ mathematical model is based on volatility modelling and Value at Risk (VaR) calculations derives the margin requirements for traders so that the probability of loss is very small — normally less than 1% according to Koval.
“This helps us totally avoid margin calls and positions liquidation,” said Koval.
The most crucial aspect of the Crix’ model is complete transparency of the entire trading process through to settlement.
Furthermore, “All traders are guaranteed that the market cannot be manipulated through hidden parameters and slippages,” said Koval. “The probability of loss is minimised.”
“The key problem with any derivatives is the counterparty risk. Leveraged trading assumes the trader can lose more than was initially invested,” said Koval.
In the fiat world there are mechanisms, explained Koval, margin calls, liquidations, insured regulated clearing houses, et cetera.
“In bitcoin those mechanisms do not work because of the anonymous nature of the system. Therefore the future contract terms and leverage allowance should be carefully tuned to provide the maximum protection for traders involved,” said Koval.
Crix’ mathematical model appears the best predictive platform, using the latest calculation method, VaR, to ensure fair settlement regardless of liquidity or volatility — two defining characteristics of cryptocurrencies today.
Crix is currently reviewing several models of business: a standalone futures exchange, powering an existing spot exchange with our technologies coupled with running the educational trading platform to provide futures trading simulations, and even organise traders and trading bots competitions.
Images courtesy of Crix.io.