Currently we offer one product - the repo transaction, which is described below. We plan to introduce other products, starting with options in the nearest future.
For all the transactions we perform, we sign GPG contracts with our clients.
Repo transaction / Secured loan
The real way to short sell BitcoinWe give you the possibility of short selling Bitcoins in the same way it is done on ordinary exchanges (e.g. stock exchanges), by offering a repo transaction. You may think about it as a simple loan of BTC in return of collateral. The transaction consists of the following steps:
- After the GPG contract is signed by both parties:
- we send BTC to your wallet,
- you send us the collateral.
- After the time - loan duration:
- we send you back the original amount of the collateral,
- you send back the original amount of BTC + fee to our wallet.
You may lend any amount of BTC between 0.05 and 1.
The amount of collateral needed is based on current BTCUSD rate (Bitstamp rate) +/- 10%. The precise amount of the collateral will be stated in the contract.
The transaction fee is 0.5% per week.
The duration of the loan may be a number of whole days between 3 and 14.
Here you may find a GPG-signed example of a contract which we will sign with you when we conclude the transaction.
Please contact us for modifications. We will create a product tailored to your needs.
How would you short sell Bitcoins using the repo transaction?
It's easy. Suppose you bet that BTC price will fall in the upcoming week. You make a repo transaction with us and receive BTC. Instantly after receiving, you sell them. Your bet was correct, the price of BTC after a week is lower, so, you buy back the amount of BTC you have to return for less than you sold.
