Video Guides
Getting started
Backing up your key
Speculating
Hedging
Early settlement
Setting counterparty leverage
Getting started
BCH Bull works as a non-custodial, permissionless web
application that creates contracts on the Bitcoin Cash
mainchain. You are in control of your funds at all times and
any contract you create and fund will be set by the terms of
agreement that only you chose to define and accept.
To
get started, you will need to accept the
terms and conditions
of the BCH Bull web application, whilst also acknowledging
that it is a non-custodial service and that securing the
account key are the sole responsibility of the user.
Once
the terms have been accepted, you must set up a Bitcoin Cash
payout address - the address that the contract will pay funds
to upon maturity. This must be a Bitcoin Cash address
(beginning with bitcoincash:). Once an individual contract has
been made, the payout address cannot change for that
particular contract, and so it is strongly recommended that
the user is the sole owner of the payout address, and that an
exchange address should never be used.
For future
contracts, the payout address can be changed in the "Address"
option located in the main menu.
Backing up your key
When you visit BCH BULL, a web wallet is created for you and
you are given the key to this wallet. You are the sole owner
of this, and therefore it is important to keep a backup in a
secure manner. Accessing your web wallet will allow you to
monitor your matured and current BCH BULL contracts.
To back up your key, go to the accounts section in the menu.
Here you can copy your key, or download it as a text file and
secure it however you wish.
You will also be able to import this key to another device
should you wish to monitor your contract positions using
different devices that are accessing the BCH BULL web
application. Simply paste your key or upload your text file
into the upload section and click the button. You will then be
asked to confirm you wish to restore your chosen wallet.
Should you wish to create positions with a newly created web
wallet, simply log out with the current wallet, and re-start
BCH BULL to start afresh for a new wallet to be created.
Speculating
Speculating allows you to long or short Bitcoin Cash against
the available assets in the application. To create a long or
short position, go to "Speculate" in the menu, choose
whether to long or short, and then choose the asset you wish
to use, with the value in that asset or BCH. After
that, choose when you wish the contract to end (contract
maturity date), and your chosen amount of leverage. A
liquidation warning will be given, which informs you at what
price value your position will be liquidated (thus losing all
funds).
Once you are satisfied with the parameters
chosen, a contract will be offered by the liquidity provider
including a fee for the service. If this is acceptable, simply
pay the amount in Bitcoin Cash to the address with the exact
amount of funds within the allocated time. If the contract
does not complete within this time, or if the wrong amount of
funds are sent, or any other error occurs, any funds paid into
the contract will automatically be sent to your payout address
with an error message explaining the reason for the failure.
Hedging
Hedging Bitcoin Cash allows you to preserve the value of your
Bitcoin Cash in the chosen asset you are hedging against. To
hedge, go to hedge in the menu, choose the asset you wish to
hedge against, and the value in that asset. After that, choose
when you wish the contract to end (contract maturity date) and
the protection percentage you require. If the value of the
asset drops below the protection percentage during your
contract timeframe, the contract will settle early and you
will receive your hedged asset amount earlier than
scheduled.
Should your contract end early, you will
need to hedge the funds again if you wish to continue
protecting the value of that asset against on-going price
volatility.
Once you are satisfied with the
parameters chosen, a contract will be offered by the liquidity
provider including a fee for the service. If this is
acceptable, simply pay the amount in Bitcoin Cash to the
address with the exact amount of funds within the allocated
time. If the funding payment does not complete within this
time, or if the wrong amount of funds are sent, or any other
error occurs, any funds paid will automatically be sent to
your payout address with an error message explaining the
reason for the failure.
Early settlement (ES)
Early settlement (ES) is a feature that allows a contract to
be voluntarily ended by the user before the scheduled
maturation time and date. For a contract to qualify for early
settlement, the ES option must have been enabled when the
contract was created. Furthermore, the contract must have
longer than two hours remaining in its duration for early
settlement to take place.
Once enabled, early settlement of a contract can be initiated
by reviewing the contract details and the early settlement
premium offered by the liquidity provider. If accepted, the
early settlement will be paid out to the payout address set
when the contract was first made. It is important to note that
any contracts that have ES enabled will be exposed to risk of
lost funds if both the liquidity provider and your browser are
compromised.
Setting counterparty leverage
When speculating with long or short contracts, BCH Bull offers
an advanced option to set the leverage of the counterparty.
This feature determines the leverage of the liquidity provider
on the other side of your contract.
Adjusting this setting influences when your contract will
automatically settle early if the price moves in your favor.
The lower the counterparty leverage you set, the greater the
percentage price change required for your contract to settle
early. Conversely, the higher the counterparty leverage, the
more likely your contract will settle early with a smaller
price change.
Keep in mind that changing the counterparty leverage can also
affect the premium set by the liquidity provider when forming
a contract.
Monitoring your contracts
Through the web application, you will be able to view a
summary of your open and completed contracts. Furthermore, you
will be able to view specific details of individual contract
data, including the links to the on-chain transactions
associated with the contract.
This overview is
based on your BCH BULL web wallet, and there are numerous
privacy options within the application to protect access to
this data whilst using the app.
Contract maturity and liquidations
The contract matures at the time and date that is set by the
user. At contract maturity, the contract pays out to the
assigned payout address.
However, it is important
to understand there are certain circumstances when the
contract ends early. If you are speculating with a long or
short position, and the price reaches the liquidation price,
your contract will liquidate. That is, it will settle early,
with all funds in the contract paying out to cover your
counterparty's opposite position.
If you are
hedging, and the value falls below your chosen protection
amount, the contract will end early. You will still receive
the hedged value of the asset however.
Understanding the oracles
The BCH BULL uses AnyHedge as the protocol to create and complete on-chain contracts. The contracts require a verifiable, accountable price data source to calculate the final payouts, and thus use the signed and verifiable price data oracles found at Oracles.Cash.