Bolsonaro 2022 Contracts

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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 BOLSONARO2022 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 the BOLSONARO2022 contract, and how does it expire?

Bolsonaro 2022 (BOLSONARO2022) is a futures contract that expires to $1 if Jair Bolsonaro wins the 2022 Brazilian presidential election and $0 otherwise.

The election held in Brazil on October 2, 2022 will determine who is elected president. If any candidate receives more than 50% of the overall vote in the first round election, they are elected president; otherwise, the president is the candidate who receives more votes in a second-round election on October 30, 2022, as announced by the Brazilian electoral authorities.

If no presidential election is held in Brazil or no winner is announced by the end of 2022, the contract will expire to $0.

 

FTX retains the final right to interpretation of this contract.  FTX will not entertain any objections to this contract’s settlement mechanisms.  Attempting to object will result in immediate account closure.  FTX may modify the terms at any point.  By trading these contracts, you are agreeing to abide by FTX’s interpretations of them.

 

How much margin is required for the BOLSONARO2022 contract?

The risk profile of BOLSONARO2022 contract is different from BTC: it has significantly higher chances of making large moves (to $0 or $1).

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All risk calculations for these contracts are based on the corresponding contract's "margin price". Refer to the table below, BOLSONARO2022's margin price is $5.

 

It also has a position limit weight of 10 and an Initial Margin Factor of 0.0001

Because of this, the required margin for one contract of BOLSONARO2022 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 about 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.

 

What are the fees for the BOLSONARO2022 contract?

Fees 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 BOLSONARO2022 for $0.52, you'd pay $0.0025 in fees.  If you bought one contract of BOLSONARO2022 for $0.99 or for $0.01, you'd pay $0.00025 in fees.

 

 

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