Recap on New Year AMA：Review and Outlook
In 2020, the global COVID-19 pandemic reshaped international politics, economy, and society. Most major economies fell into recession. In sharp contrast to this, the digital assets market flourished in the second half of the year. On 31 Dec 2020, the price of Bitcoin hit a new all-time-high to $30,000, contributing a perfect ending for cryptocurrency on the last day before the new year.
In such a turbulent economic environment, Huobi Futures ushers in its rapid growth and ranks first in the world in terms of its annual trading volume. Looking ahead to 2021, we still expect great opportunities and challenges in there. To better summarize the reasons for the failure and success that we have experienced in 2020, we held this AMA and invited Tom Wong, COO of Huobi Futures to share with you more about our development.
Guest Speaker Introduction
Tom Wong, COO of Huobi Futures. Tom was a serial entrepreneur before joining the Huobi Group. After years of technical experience in Huawei, Tom started his journey in the blockchain industry first as a miner in Thunder and later starting businesses of his own. Currently, he takes a full range of operation and marketing as COO at Huobi Futures and becomes a crypto derivatives pioneer by introducing the VIP Sharing Program which was modeled later on across the industry.
Q1: How has everything gone with your 2020 goals? Do you have anything proposed for later this year or next year?
A: On Mar. 27, 2020, we launched our second product coin-margined swaps and exceeded BitMEX, the largest coin-margined swaps exchange at that time, in 45 days. On Sept. 1st we introduced our third product USDT-quoted options, then on Oct. 26, our fourth product USDT-margined Swaps comes out and in just two months, its cumulative trading amount exceeded $177.8 billion and accounted for 35% of the total trading volume at the end of December. At the same time, we also introduced a lots of unique functions to meet diverse needs of our users. Now we are a one-stop derivatives trading platform, our goal in 2021 is to keep improving all these products and to enrich our product varieties.
Q2: Huobi Futures is one of the Most Trusted Digital Asset Exchanges, what’re the strategies that you adopted to preserve this trust, keep it secure?
A: First of all, our team has years of experience in product design and technology, aiming at providing high-quality trading experience for users. Second, we adopt a price limit mechanism that is used in traditional finance to protect our users from a manipulated market; Third, we introduced a three-phase liquidation mechanism in which users could enjoy a high-leverage trading experience without worry too much about the liquidation. These are some of the main reasons, I’ll not list them all here. When it comes to asset safety, we have separated the assets to cold and hot wallets, and we require multi-signature for KYC; moreover, we have anti-DDOS protection system to prevent extreme cases and to ensure every-day normal trading.
Q3: The biggest challenge of any Exchange is user. So, what are the types of users on your exchange? How does Huobi Futures do to keep all users stay with your exchange for longterm?
A: We have both institutional and retail users, and we have been continuously optimizing all our product based on users’ feedback and suggestions. To improve the asset utilization and to reduce and trading cost, we’ve introduced lots of innovative features like locked margin mechanism, upgraded take-profit and stop-loss, real-time settlement and daily settlement, Follow a Maker & Taker, etc. And we’re expanding the asset varieties for each product on a weekly basis. In our latest version V6.3.0., we optimized the system performance and now it has a throughput of 10W+, the response speed of placing and cancelling orders is within 6ms, and the link delay is within 25ms. Besides, we launched many user-friendly policies like VIP+1, Deposit to Become a VIP program to lower the transaction fees for our clients.
Q4: What is Zero Clawbacks? How Zero Clawbacks is helping Huobi Futures users?
A: Clawback: when the market fluctuates severely, some of our users are subjected to a liquidation. When the orders cannot be filled with the takeover price, a loss that greater than the range that the insurance fund can undertake generates. In a clawback mechanism, each profitable account shall compensate for the loss of liquidation according to their profit ratio. Holding a zero clawback record since launch indicates that our profitable users have never suffered loss from clawback.
Q5: What’s VIP Sharing Program & Tiered Adjustment Factor on Huobi Futures? What are the benefits to the traders from both?
A: Due to the fact that most exchanges require at least hundreds of BTC to be traded per month to reach their VIP standard, many traders have been rejected by these platforms to get a VIP when the annual increase in Bitcoin price has risen by 400%. On Huobi Futures, as long as you have assets worth of 30,000 USDT in Huobi Futures account, you will be qualified for VIP. In addition to that, Huobi introduced an upgraded VIP Sharing Program, that is, VIPs of any other exchanges are considered as Huobi Futures VIP+1. Users could provide certificates of VIP level on other platforms to apply for a VIP+1 level on Huobi Futures for coin-margined swaps and coin-margined futures trading. For more details, please click https://support.hbfile.net/hc/en-us/articles/900004736623-Huobi-Futures-Upgraded-VIP-Sharing-Program-VIPs-of-Any-Exchange-are-Considered-as-Huobi-Futures-VIP-1. And for tiered adjustment factor, it is a mechanism designed to prevent users from unnecessary liquidation loss.
Q6: I don’t know have much knowledge about blockchain. I am a newbie trader and just want to learn before I start investing, do #HuobiFutures offer any educational courses that I can learn from?
A: In this link https://support.hbfile.net/hc/en-us/sections/360000063661-Contract-Trading-Tutorial you can find lots of videos and comics including [Step By Step Tutorial] and [Contract Trading 101] for beginners to understand the basic rules of trading and how each product works. If you still have problems when trading on our platform, please don’t hesitate to contract our service support.
Q7: Are there any newly added features or tools that has been integrated into #HuobiFutures that users should be aware of this 2021?
A: To aid our traders in better hedging risk and reap rewards of a trade in advance, we introduced daily settlement for coin-margined futures, as well as upgraded stop-loss and take-profit instruments for coin-margined and USDT-margined positions on January 7, 2021. These exciting functions will empower both institutional and retail traders to fetch out maximum benefits in derivatives trading while controlling risks in advance.
Q8: There are currently many exchanges. Of the numerous options, what advantages does Huobi Futures have for users to choose over other exchanges?
A: We are a one-stop crypto derivatives platform by offering coin-margined futures & swaps, USDT-margined swaps and USDT-margined options. Both short term and long term investors can find their needed product with user-friendly functions and high-level security on Huobi Futures. The below are the main reasons for you to choose Huobi Futures:
🎀Possesses an excellent liquidity and the highest trading volume among all exchanges in 2020
🎀Possesses a mature risk control system and top-level technique to ensure asset safety
🎀 Low transaction fees for all products
🎀Holds a zero clawback record since launch and never reduce the positions of profitable users
🎀 User friendly policy: VIP+1 policy (evaluation is based on USD instead of BTC), Deposit to Become a VIP program
🎀7*24 point-to-point service
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