Superbowl Futures and Tokens

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Notes

  1. FTX Token (FTT) is not available in the United States or other prohibited jurisdictions. If you are located in, incorporated or otherwise established in, or a resident of the United States of America, you are not permitted to transact in FTT.
  2. Trading on FTX is not available in the United States or other prohibited jurisdictions. If you are located in, incorporated or otherwise established in, or a resident of the United States of America, you are not permitted to trade on FTX.
  3. FTX retains the final right to interpretation of its rules and conditions on these and all contracts.
  4. FTX retains the final right to modify terms of its rules and conditions on these and all contracts.
  5. Trading NFC-SB-2021 and other Superbowl 2021 contracts is not permitted by residents of the United States, Canada, the European Union, the United Kingdom, Singapore, the UAE, Cambodia, Turkey, mainland China and Hong Kong SAR, and other FTX prohibited jurisdictions.

 

What is NFC-SB-2021?

NFC-SB-2021 (National Football Conference Superbowl 2021) is a futures contract that expires to $1 if a team in the National Football Conference wins the 2021 United States Superbowl, $0 if a team in the American Football Conference wins, and $0.50 if there is no winner by July 1, 2021.

 

 

Superbowl tokens

NFCWIN-SB-2021 and AFC-SB-2021 are ERC20 tokens that will be redeemable on FTX for either $1, $0, or $0.5 based on the results of the superbowl. They also trade on FTX!

 

These require no margin: they are spot tokens. You can create or redeem one of each for $1 at any time. See here for more information.

 

Note that the ability to redeem on FTX is restricted to those who have KYCed accounts on FTX from allowed jurisdictions.

 

How do you trade Superbowl markets?

They trade the same way as other futures on FTX: you can go long or short using any of the available forms of collateral.  PnL is paid out in USD.

 

How much margin is required for NFC-SB-2021?

The risk profile of NFC-SB-2021 contracts are different from BTC: they have significantly higher chances of making large moves (to $0 or $1).

The initial margin requirement for one NFC-SB-2021 is $0.50, so you need max($0.50, price of NFC-SB-2021) to get short 1 NFC-SB-2021 or min($0.5, price of NFC-SB-2021) to get long 1 NFC-SB-2021.

All risk calculations for these contracts are based on the corresponding contract's "margin price". The margin price for NFC-SB-2021 is $5.

 

Because of this, the required margin for one contract of NFC-SB-2021 is as follows:

Initial Margin Fraction Requirement (IMF):  Min(standard IMF * size * margin price, size * mark price + (fees that would be paid to close if all taker) * margin price) / size.

Roughly speaking, Initial margin is Margin Price / leverage.

 

Maintenance Margin Fraction Requirement (MMF):

  • If Long: Min(standard MMF, Mark Price / Margin Price) 
  • If Short: Min(standard MMF, (1 - Mark Price) / Margin Price)

For info standard IMF and MMF (the IMF and MMF used for our standard futures), visit our Complete Futures Specs article.

 

Note that FTX reserves the right to increase margin requirements, with advanced notice, as we approach the superbowl!  If you put on a leveraged position, you could later get liquidated due to collateral requirement increases.

 

What does NFC-SB-2021 expire to, and what are Superbowl tokens redeemable for?

If the Superbowl is won by a team from the National Football Conference before July 1, 2021

  • NFC-SB-2021 will expire to $1
  • NFCWIN-SB-2021 will be redeemable for $1

  • AFCWIN-SB-2021 will be redeemable for $0

 

If the Superbowl is won by a team from the American Football Conference before July 1, 2021

  • NFC-SB-2021 will expire to $0
  • NFCWIN-SB-2021 will be redeemable for $0

  • AFCWIN-SB-2021 will be redeemable for $1

 

If no team wins the Superbowl by July 1, 2021

  • NFC-SB-2021 will expire to $0.5
  • NFCWIN-SB-2021 will be redeemable for $0.5

  • AFCWIN-SB-2021 will be redeemable for $0.5

 

What does the price of NFC-SB-2021 mean?

Theoretically--ignoring interest rates, fees, inefficiency, spread, etc.--the price of one contract of NFC-SB-2021 should be equal to the probability that a team from the National Football Conference wins the superbowl.  So if you think there's a 52% chance of such a team winning, then NFC-SB-2021 should trade at $0.52; buying below there would be good, as would selling above $0.52.

 

What are the fees for NFC-SB-2021?

Fees for NFC-SB-2021 contracts are based on this formula:

Fee = Base Fee Rate * max($0.05, min($5, fill price * 50, [1 - fill price] * 50))

So if your base fee rate was 0.05% and you bought one contract of NFC-SB-2021 for $0.52, you'd pay $0.0025 in fees.  If you bought one contract of NFC-SB-2021 for $0.99 or for $0.01, you'd pay $0.00025 in fees.

 

What if there are disputes?

FTX will not entertain any disputes regarding these products or any other prediction market products.

By trading these products you are agreeing to the terms of service, this article, and to FTX's absolute right to settle the contracts as it sees fit regardless of any other factors including what this article says.

If you are not comfortable with that, do not trade these products.

 

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