the CME expires at 16:00 London Time which is either 16:00 UTC or 15:00 UTC depending on daylight saving time. If the price of Dai has fallen to 80 cent, CDP owners may be reluctant to redeem if they expect the Dai price to fall further to 60 cent, as such a price would enable them to make even more profit. XBT exposure: 50,000 short contracts / 10,000 -5 XBT USD exposure: 50,000 short contracts * 1 USD 50,000 net: 0 XBT / 10,000 On CME: XBT exposure: 5 long contracts * 5 XBT 25 XBT USD exposure: 5 long contracts * 5 XBT * 8,000.
Nu (NuBits crypto-collateralized, white paper, steem (SteemUSD). Arbitraging BitMEX versus the CME requires a high level of trading sophistication and attention to detail. The CME contracts USD value changes in a linear fashion with respect to the spot price (. White paper, basis, non-collateralized n/a. The idea is that this mechanism can be used as a threat against CDP holders, to ensure they keep redeeming Dai in the event the price falls, rather than holding out for an even lower price. CDP liquidation (indirect) Positive There is a mechanism by which traders/keepers can redeem the Ethereum collateral held by another CDP.