- Luxor Technologies is launching an OTC NDF derivative for the bitcoin mining industry.
- The NDF will track the hash price of different companies and offer different contract terms with flexible settlement options, including BTC.
- The NDF will follow Luxor’s Hashprice Index to determine hash price values.
Luxor Technologies, a bitcoin mining service provider, has launched Luxor Hashprice NDF, an over-the-counter (OTC) bitcoin mining derivative, according to a statement sent to Bitcoin Magazine.
Hashprice tracks the revenue earned by mining bitcoins based on hashrate capacity over a given time period.
The Non-Deliverable Futures (NDF) contract will track the hash price of bitcoin mining companies allowing investors and institutions to indirectly access the mining industry.
“These products are an important step in Luxor’s roadmap and something we have analyzed deeply since the genesis of the company; Hashprice derivatives are the apotheosis of our view of hashrate as an asset class, something we’ve pioneered since we introduced hashprice with the launch of the Hashrate Index in 2020 said Nick Hansen, Luxor CEO and co-founder.
NDF will be settled in USD by default, but will give participants the opportunity to choose BTC as an alternative.
In addition, Luxor will facilitate orders, manage counterparty risk and settle payments, using its hashrate index as the basis for determining hashrate value. NDF sellers will choose one of three options with different variables for contract terms: locked hash price, daily hashrate sold, or contract duration. Contracts will be flexible and used to meet the needs of counterparties.
Luxor’s NDF is the first of many hashrate-based derivatives the company plans to release over the next year, according to the release.