AMA Recap: CRYPTO MINERS X HOUBI DERIVATIVES WARRANT

Huobi Derivatives Warrant is a featured option product created by Huobi Futures, a derivatives trading platform under Huobi Global. Featuring mainly American options and European spread options, Huobi Derivatives Warrant enables users to increase their potential upside without putting much capital at risk.

We hosted an AMA session with Houbi Derivatives Warrant on 5th November at 1:00 PM UTC.

Mr. Ramsy was the host from Crypto Miners and Mr. Paul, Head of Houbi Derivatives Warrant was our guest. He shared delightful knowledge and unique features of this option.

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Segment 1️⃣: Introduction

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Ramsy:
Hello everyone 👋 and welcome to the Crypto Miners AMA session with Huobi Derivatives Warrant

Thank you all for joining us today!❣

To help us learn more about the featured project of this AMA session, we are lucky to be joined By Mr. Paul (Head Of Huobi Derivatives Warrant), Welcome to our community 🤝

Paul:
Thank you!

I notice your community is quite sophisticated
you guys are talking about interesting project like phantom

have you guys join huobi’s IEO tonight, IMX, a very nice project

Ramsy:
Haha😅, Really

Gald to see you here ,
Thanks for bringing Us Huobi Derivatives Warrant

Paul:
may I ask what kind of mining do you do?

LP mining?

Ramsy:
Everything What we possible 😇.

Paul:
cool

should we start the main topic?

Ramsy:
Sure Let's Go 🏍💨

Paul:
before I go into questions, let me do some intro

Ramsy:
Go Ahead 👍

Paul:
I am Paul, who was a Portfolio manager for a mutual fund and have 10 years derivative trading experience. Now it’s a crypto enthusiast trying to build various tools for crypto world

warrant is an awesome tool for our crypto world

my great pleasure to bring it in

should we go to question?

Ramsy:
Here's our first question of this segment...

1.Why do we need to have Derivatives Warrants?

Paul:

First of all, an option is an awesome tool to create various strategies which can’t be replaced by futures, we have now a big option market in the crypto world.
a)We found the format of exchange traded option is quite difficult for our clients to understand. We designed a more concise way to present options to suit their needs.
b)After we pact our product, we found we can sell the Derivatives Warrant cheaper compared with other exchange traded options.
c)Our clients need more flexible ways to trade options, they need touch option, barrier option, American option. Sometimes they want options with the specifics which can’t be found on an exchange, we offer more flexibility.

share a really example

We are now the largest hedger of LP mining

We use warrant to protect the more than 70 mio usd lp pair now

if you do lp mining, you will incur huge amount of impermanent loss

in last month

our 70 mio usd position, we will have around 8mio usd loss

but after we hedge it, it only cost 30k usd

Ramsy:
It's really usefull for LP Miners 👏👏

Paul:
indeed

Ramsy:
Now Deal With our second one..

2.How should we understand Derivatives Warrant premium?

Paul:
It’s like option premium, for our American option, you can regard it as a sunk cost or a cost in exchange for insurance. You can still realize the profit conveniently. For our European option, there is more flexibility. The price of option goes in the same way as underlying asset and with nice leverage and without the risk of liquidation.

as i just mention, the hedge for 70 mio ust lp cost us 30k usd

One thing i wanna share, if you want to grab a leverage position but you get liquidated

it's quite dumb

warrant can help you avoid it

Ramsy:
Moving on....

3.What’s the difference between Derivatives Warrant and traditional option?

Paul:
We try to simplify it and keep the essence. For example, on our app, we simplify our options into an ATM American option. Client can trade direction with three clicks on our app.

you can buy kick in kick out option for coins on our platform

It's awesome

We have the best price euro option in the industry

we provide simplfied version

we have professional level product

please come and claim our free airdrop

and go for a try

Ramsy:
4.Why Derivatives Warrant can be a cheaper way to trade than other option?

Paul:
Yes, it can. If you buy a spread from us, you only need to pay the spread and commission one time, rather than twice if you create it at the exchange. We don’t charge settlement fees now, so the total cost can be much cheaper.

we try to eliminate all the unneccessary cost for our clients

we dont charge settlement cost

we dont charge commission from our client

Ramsy:
Impressive👌

Alright Now moving to our last question from this segment...

5.When can we have Derivatives Warrant as a more effective way to trade?

Paul:
It covers a lot of unique situations. For example, you can trade a small range bound with our spread. You can bet on a big rally without worrying about the liquidation.

if you believe the price will rush to a certain level but not stay on it, you can buy our touch option

if you want to hedge your lp, you can have our bearspread

Ramsy:
Thanks for that well detailed introduction about Huobi Derivatives Warrant🤝
That's the wrap up the our first part of the AMA session✅

Paul:
cool

Ramsy:
Let’s now proceed to the Twitter Questions section,

Paul:
yes

Ramsy:
I hope you're ready for that!

Segment 2️⃣: Twitter Questions

Q1) I had a few queries after doing some research on your platform. So, could you clarify the distinction between a warrant and a perpetual swap? What should we do if we can't decide between the American and European options? When is the optimum time to use one of these two methods?

Paul:
It’s quite often to lose your position and profit when you have a right view. If you have an American option like 1 BTC call at 43000 expiring in 1 week, you are holding a 10x leveraged position at BTC. If the PTC price fell to 38000 during the week then going back to 45000 at the end, you will make a 2000 usd profit. It’s a bit tricky when you trade American options. You can’t sell it back, but you can realize the profit with futures. If u buy 40000 American put, and u want to lock the profit at 41000, u can buy half future, 1BTC option & long 0.5 BTC future. If prices go up, futures win, if prices fell then options win.

as i said, if your leverage position is liquidated, it's quite dumb

so think about warrant

it eliminate your liquidation risk

for EU option and US option

The picture tells

if you want to pick the sudden fall, american option is awesome

go for a try

Q2) Huobi Global is the world’s leading digital asset exchange platform. So where is your project based? What is the expansion mechanism for the project to reach sectors around the world? What are the communities or countries where you plan to implement your project?

Paul:
yes, huobi has perfect track record on security and huobi have first class rate asset

like tonight, we lauch the awesome project immutable

we come from asia, but we are believer of crypto world

we want to serve the client from every place

the sharing like tonight is an example

Q3)Options trading in the DeFi space is a facet of the market that is relatively underpopulated so why did you decide to introduce the option trading in the Huobi and what is the deference bitween traditional option trading and the crypto option trading?

Paul:
we need to have the mindset of adaptive

whenever you have an non linear risk, think about options

as we are the largest lp hedger in the world

we buy a lot of options

we are thinking about moving our option platform onto layer 2

and volume of option on defin is growing rapidly

Q4)I heard that for the time being, you don’t charge any transaction fees at #Huobi? This is fantastic, but may I enquire as to why? Does this also imply that there will be NO FEES in the future? If that’s the case, could you tell us about your plans?

Paul:
we dont have plan to change our price policy. we will always try to have our client have the est price products

we keep doing airdrop for clients

Q5) There are two options available to users which are American Option and European options. How can we choose between American option and European option? Kindly give the benefit offered by each of these options amd their differences? Which do you think is a better choice for users?

Paul:
ha,this one is like the first one
american option eliminate the liquidity risk for our client

you can set a target price

and have a good sleep without worrying unnecessary risk

if you like sell your position at calm market, you can have eu options

Ramsy:
Thanks Your Valuable Answers,❣
And that's enough for our twitter question segment

Paul:
thank you for your questions!

Ramsy:
Moving on to our last segment - Live Q&A.

Shall we go?

Paul:
yes

Ramsy:
Let’s Go 🚀

Segment 3️⃣: Live QnA
(In this segment group was opened for 60 seconds and miners sent hundreds of questions. Mr. Paul choose some best to answer)

1)Do your project support staking program? If yes. how is your stake system work, can you tell me what is the requirement for user if they want to stake in your platform?

Paul:
we do have a plan to turn our product into a staking product. Please keep watching

We plan to lauch a saving program, you can buy btc and eth at discounted price in the program

2) Do you have Twitter/Telegram/Discord community? If yes can you share the link here because there is a lot of fake telegram/twitter groups?

Paul:
good question, we do have, it’s pinned. we have regular in-depth sharing in our chatroom, please come and join us

claim a free airdrop and learn how to use warrant

3) IS This Your project only for elite investors, how about others with small funds, is it open to everyone?

Paul:
we have a simplied version for beginner, we also have professional level for miner. We do try to build product for more and more styles clients

4) Market volatility is a very serious problem. Now, can you give a brief explanation of the limitations this causes? What methods would you employ to reduce this to a minimum?

Paul:
when you learn about options and warrant, volatility can be your good friend

you can have a much more powerful dimension to earn

5) HUOBI GLOBAL is a leading digital asset exchange since 2013..
Can you tell us it’s expansion in 8 years? Then and now?

Paul:
lovely questions! first, we solve the security questions for our clients, second, we provide the best product for our client. Third, we try to reach different community all over the world and have them know about our products

*This segment ends here*

Ramsy:
Thankyou so much For your valuable answers and information about Huobi Derivatives Warrant,
It Was Pleasure Hosting An Ama With You🤝

Is there anything else you would like to share or you want us to know ?

Paul:
warrant can be quite versitle, i believe it will have its position in the crypto world. It’s well worthy for miner to learn about it

Thank you all

Ramsy:
Sure and Wish all the very best for "Huobi Derivatives Warrant" 🚀🚀

Community, if you would like to learn more about Huobi Derivatives Warrant, here are some useful links for you:

Telagram: https://t.me/Huobi_D_Warrant

Twitter : https://twitter.com/Huobi_D_Warrant

Website: https://www.huobi.com/en-us/otc-option/exchange

Medium: Huobi_Derivatives_Warrant