Bitcoin Forum

i just noticed that kucoin recently launched (https://www.kucoin.com/news/en-kumex-launches-the-contract-desk) a bitmex-like derivatives platform. up to 20x leverage, and it looks like for now there is only one contract available---bitcoin perpetual swap contract. (https://www.kumex.com/contract/detail/XBTUSDM) it has a very small contract size (in fact they are calling it a "mini" contract) at 1 USD so it's very accessible. for now, their terms say nothing about prohibiting USA residents, though with bitmex having the CFTC breathing down their neck, that may change.

they said the public beta launch lasts 3 weeks. that was almost 3 weeks ago. so i guess it should be launching for real soon?

Seems like an almost-exact clone of Bitmex to me as you said with just a few very small differences, such as a 0.06% taker fee and a -0.025% maker fee according to the specifications of the contract, so you're getting a refund on fees as a maker just like Bitmex. I might just check this out for the sole fact that it does not seem to exclude US traders for the moment, but I also agree that they're likely going to add a clause in their terms restricting US traders soon as well. Interestingly enough KuCoin published an article in my small town about launching their derivatives platform on the local news network website, so they might be trying to stick around in the US.

I guess every other exchange is envious of bitmex and their platform and is now willing to create their own version *cough* *cough* "Copy" of bitmex. The legal problem with bitmex just gives another window of opportunity to prey on the users of bitmex for a new derivatives platform and that is a good marketing method by launching it at this time. If it does launch that is.

Even then I was never a fan of leverage trading. More of the spot trading people is what I prefer. Take your risks if you like them though. I would be cautious about any new exchange even if it was being prepared by a previously known name.

Bitmex might be the one in the spot light right now, negatively speaking, but this will eventually affect other non compliant derivative platforms too. It's either you bullet proof your platform against US residents from the start, or you will be held accountable eventually for providing a service to US residents initially, even when you exclude US residents later on.

I'm pretty certain that when Coinbase enters the leverage game they will experience a massive boost in actual use. Currently people mainly use Coinbase as fiat gateway to enter or exit, but this is something that will keep people within their ecosystem. The good thing here is that they legally aren't allowed to offer anything near 100x leverage. I assume it will be 2-5x at most, which is plenty enough.

if they allow people from the USA and there's decent liquidity, i'll be all over it. i hate doing the VPN thing with bitmex et al.

but you're right, i don't understand why they would risk that legally considering the nature of the CFTC bitmex probe. then again, kucoin hasn't restricted americans from any token markets despite binance, poloniex, and bittrex all doing so. americans can only hope they keep being this lax for as long as possible.


they (gdax) used to offer margin trading up to 3x leverage. they removed it after a flash crash. it was always restricted to accredited investors anyway and i'm guessing they would apply those restrictions again since they are so uptight about compliance. so that would cut off most retail traders anyway.

Isn't this just a clown of Bitmex, but with access able to US users? They haven't restricted US users, which could mean trouble for bitmex, I personally know a lot of US friends who've been forced to VPN to bitmex for their trades. Even with it being in a test state right now, them allowing US residents is massive for adoption in a whole, Kucoin has also been very lenient with their American userbase, especially compared to other exchanges.

The possible biggest name in leverage trading now? If they allow US investors, they will 100 percent blow up. I haven't found their fees as well, could someone forward me a link to them?

Yep, seems like it. I know a bunch of people who trade on Bitmex or other sites like Deribit using VPNs as well, going to potentially recommend this site to 'em as it'd be much easier and more convenient to trade without using a VPN.

As for the fee structure, the link's here (https://www.kucoin.com/news/en-kumex-fee). Very similar to Bitmex's fees, except the taker fee is 0.06% and not 0.075%.

the structure is a bit convoluted: maker fee = (-0.025%) + (-0.00000002XBT/lot) and taker fee = 0.060% + 0.00000003XBT/lot. https://www.kucoin.com/news/en-kumex-fee

taker orders are 0.015% cheaper than bitmex, minus the somewhat negligible fixed fees on kumex. it looks like kumex is better for both makers and takers, though not by a huge margin.

That's crazy! Better fees than other options and allows US residents? Seems like a dream come true, the only question is if this is actually viable for Kucoin. If it's been in the making and they've already finalized the legal side to their US operations, when this goes live, it'll probably be one of the biggest releases of the year.

Do you guys think they'll release with all of these features? Seems like they aren't trying to overpromise with their approach, and keeping everyone in the dark for now.

I highly doubt they are planning to follow the legal route considering how much of a process it is, and they fall under the umbrella of the CFTC even when there are problems not related to their derivatives.

I think this whole leverage game is blown out of proportion by gamblers looking to take extreme risks. Most well thinking people don't go further than 2 or 3x leverage because crypto itself is already extremely volatile.

kumex increased maximum leverage from 20x to 100x: https://www.kucoin.com/news/en-kumex-perpetual-contract-increases-maximum-leverage-to-100x

looks like they're going full bitmex to try and attract more liquidity. i welcome the change. up to 500% more leverage means the order books should thicken up---hopefully enough to handle the liquidations. :P

anyone trading there? the UI is solid---it's quite like bitmex (except i don't need to hide behind VPN). with deribit implementing KYC i'm thinking this might be a good opportunity for kumex to increase their market share.

They haven't restricted US users.. yet. I'm pretty certain that they'll eventually going to need to do geo-restrictions like how BitMEX and Binance does it. Regulations are just going to be stricter and stricter from here, and if you're not willing to submit AML/KYC information, I'd personally avoid these services like the plague.