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.