BitMEX Updates Mark Method for HMSTRUSDTU24 to Fair Price Marking

BitMEX has announced a significant update to the Mark Method for the HMSTRUSDTU24 contract, shifting to Fair Price marking as of September 27, 2024, at 09:07 UTC, according to the BitMEX Blog.

Reason for the Change

The change was made possible by the construction of a robust index that accurately represents the spot prices of HMSTR. This new index, known as .BHMSTRT, integrates HMSTR prices from several major exchanges, including Bybit, OKX, Kucoin, Gate.io, and Binance.

Impact on Trading

With this update, the Limit Down and Limit Up price protections have been removed, which could lead to more price volatility but also potentially more accurate pricing reflective of market conditions. Traders should be aware of these changes and adjust their strategies accordingly.

Industry Context

This move by BitMEX aligns with broader trends in the cryptocurrency industry towards more transparent and reliable pricing mechanisms. Other exchanges have also been enhancing their price indices and risk management frameworks to provide better trading environments.

For those with questions or requiring further clarification, BitMEX has directed users to their Support page.