BitVc - A New Trading Platform From Huobi

[huobi_network]

BitVc is a new trading platform which allows margin trading of Bitcoin and Litecoin. Like Huobi, there will be zero trading or withdrawal fees. BitVc is based on Huobi's API and will support BTC/LTC derivatives and financial instruments. BitVc will be focused on margin trading, derivatives, and other financial instruments, while Huobi will continue to be mainly a spot trading platform. The API will be opened later for other developers to create applications on it. BitVc was created by the people behind Huobi, which has an impeccable security and performance record. It is registered to Huobi's subsidiary company in Hong Kong.

BitVc features a new product/service called Yubibao, which is an interest-bearing BTC/LTC account within BitVc. You can move your BTC/LTC into your Yubibao and withdraw into your normal account instantly and at any time. Yubibao gives risk-averse people a safe, easy way to put their coins to work for profit. Interest is derived from traders who borrow to trade on margin. Rather than setting your own loan terms, BitVc pools all the deposits in Yubibao and offers the same market rate to all savers and borrowers.

BitVc is currently in invitation-only mode, but you can send me a message if you want an invitation code. Your feedback would be much appreciated.

https://www.bitvc.com/

http://newsbtc.com/2014/06/16/chinese-bitcoin-exchange-huobi-launch-virtual-currency-based-derivatives-platform-bitvc/

[elebit]

Sorry for stating the obvious, but if there are no fees where do you have your income?

[Hyena]

Is it the Chinese analogue to the Wingelwoss trust fund?

[huobi_network]

Sorry for stating the obvious, but if there are no fees where do you have your income?

Lending for margin trading, fiat withdrawals, VIP services, etc.

[MatTheCat]

Sorry for stating the obvious, but if there are no fees where do you have your income?

Painting the tape, front running, and insider trading of course!

Duh!



and this:

Lending for margin trading, fiat withdrawals, VIP services, etc.

Pays for the staff tea n biscuits.

[fonzie]

Sorry for stating the obvious, but if there are no fees where do you have your income?

Painting the tape, front running, and insider trading of course!

Duh!



and this:

Lending for margin trading, fiat withdrawals, VIP services, etc.

Pays for the staff tea n biscuits.

 

[elebit]

Sorry for stating the obvious, but if there are no fees where do you have your income?

Painting the tape, front running, and insider trading of course!

That's a bit ... harsh, considering we've all been trading on real scam sites such as MtGox, Bitcoinica etc. And it's been possible to make a crazy ROI on that.

If you're trading super short swings, with leverage, on an unregulated exchange, you really can't complain much. But if you take a longer view, front running doesn't matter much. Where are we going in a week? In a month? There's still money to be made.

I do appreciate that Bitfinex gets a bit of a competition in this space.

[MatTheCat]

If you're trading super short swings, with leverage, on an unregulated exchange, you really can't complain much. But if you take a longer view, front running doesn't matter much. Where are we going in a week? In a month? There's still money to be made.

Really?

So would you go to bed without a stop loss on a leveraged trade? I soon learned that setting stop losses were just a way of helping the exchange insiders farm my arse, so I stopped doing it. Then one night I went to bed and woke up to find that Bitcoin had gone some $40 against my trade. Instead of cementing the losses, I decided to go Kamikaze on the trade and hold until the trade came back to my break even point. The trade eventually did come back to my break even point but before that happened, I am afraid I lost my nerve some $110 into the wrong side of my trade and realised the biggest capital loss I have ever suffered in my entire life.

So what can a trader do? He has to set Stop Loss orders and accept the fact that whenever it is feasible, profitable and proficient to do so, these unregulated exchanges can and will farm your arse. But since we are trading on unregulated exchanges we can't really complain too much about this sort of thing, right? Instead, we can resolve to never make a leveraged trade in a flat market? Well how are you ever going to catch any sweet breaks if you don't trade when the market is still flat?

And where are we going in a week, in a month? If you went leveraged long last week you would have gotten in at about $590. Two weeks ago and you would have gotten in about $650. A Month ago you would have gotten in at $540. That is much more like it, but what about the 0.25% daily compound interest? Say you got in on May 23rd with 10000 USD leveraged trade. The interest you would have to pay on that trade for one month would be around $900 USD. That is more than your profit margins would be today. Well done, you are on the winning side of the trade but are in the red.

[elebit]

So would you go to bed without a stop loss on a leveraged trade? I soon learned that setting stop losses were just a way of helping the exchange insiders farm my arse, so I stopped doing it.

I see what you're saying here, but you can never protect yourself completely from stop loss farming. If the insider's don't get you, the whales will. Especially now that Finex is decoupled from Stamp. A whale with a thousand coins to toy with could do some real harm there.

Myself I am much too scared to trade this way.

Say you got in on May 23rd with 10000 USD leveraged trade. The interest you would have to pay on that trade for one month would be around $900 USD. That is more than your profit margins would be today. Well done, you are on the winning side of the trade but are in the red.

Yeah, sorry, I don't have an answer to this. The interest is just too high because the market is illiquid. More and larger exchanges will only make the situation better. That's why I like what Huobi did, in principle. I will defer judgement until I see it in practice.

[aonori]

I got invited code from huobi at reddit, and resisted.

In my understanding, cny/btc/ltc borrower first pays 0.1%/day and interest grows 10%/ 10days.
So after first 10days, borrower will pay 0.11%(0.1% *10%).
And after 250 days,borrower will reach 1% cap( (0.1%*1.01)^25=1.08%).

lender get 80% of borrower's interest.

Is this correct?

[Emule]

might as well get intrest on your BTC while sitting on your account, will try for sure!

[PhilippeStevens]

Can someone send me an invitation

[ashish12]

anyone invite ?

[superbit]

I'll take a invite to check it out if someone has one.

[TwinWinNerD]

I'd like to check it out too!

Invite code please if anyone has one left.

[21pilot]

I would also be interested in an invite.

(I also gladly sign up under your referral link if they already have an affiliate system)

[hodap]

Like an invite code also.

What is the current rate on RMB and btc?

[huobi_network]

Please send me a PM to request an invite code.

[davidgdg]

Not sure I understand how these BTC interest rates work. The only people who need to borrow BTC are short sellers. But there are not many of them and you would expect the interest rates to be very low (on Finex they are about 0.5% per YEAR). Dollar rates for leveraged buyers going long are a different story, but Huobi are not offering dollar deposits.
All very weird.

[elebit]

Dollar rates for leveraged buyers going long are a different story, but Huobi are not offering dollar deposits.

Well, they offer CNY desposits, don't they? Unless all the talk about coupons and indirect fiat deposits were lies, they probably have a lot of (potential?) Chinese traders who also want to go long on Bitcoin.