Dynamics and example of trade

An example with actual market data for ETH (Mar-24) vs ETH (spot) prices. It shows the difference and how it converges at maturity.

Position Entry

• ETH Spot Price at Entry: $3,672.99

• ETH Futures Price at Entry (For Delivery): $3,768.92

• Entry Date: 05-Mar-24 (8:00 am UTC)

• Settlement Date/Delivery: 29-Mar-24

• Duration: 24 Days

• Absolute Return: 2.61%

• Execution Charges 0.30%

• Net Return Post Execution: 2.31%

• Annual Percentage Yield (APY): 35.15%

Yield Bearing token terms

• Maturity – 3 or 6 months

• Underlying asset – ETH, BTC (spot and futures)

• Min. Size - $10 for ETH and $100 for BTC (<$1 for secondary market)

• Platform – Binance, OKX, Bybit, Derebit, or any other with delivery futures