FTX has officially partnered with leading institutional liquidity provider Paradigm to make it easier than ever to trade futures spreads. This partnership is a natural progression on the back of a longstanding relationship, and cements our shared goals to improve the crypto ecosystem.
Paradigm’s platform is a marketplace where crypto derivative traders can trade the spread between spot, perpetuals and fixed maturity futures on BTC, ETH, SOL, AVAX, APE, DOGE, LINK and LTC cleared via FTX. Clients are able to do this with better execution, cheaper costs and a single click - making Paradigm the ideal partner to execute these strategies.
Leverage FTX’s partnership with Paradigm today to:
Generate yield via “cash and carry” trades and funding rate farming
Yield-seeking investors can now execute “cash and carry” trades leveraging FTX’s spot and futures instruments across multiple coins and futures expirations, all while avoiding slippage on each leg with Paradigm’s block trading facilities. Traders can also take advantage of funding rates on perpetuals with just a single click, rather than manage each leg individually.
Roll expiring futures hedges more efficiently
Futures spreads allow users to buy a futures contract and simultaneously sell another futures contract in a single trade. This provides an additional set of tools for users looking to roll futures near expiry, or optimize their carry cost by switching between futures and perpetuals.
Fifty percent less fees when trading spreads on Paradigm
Trade using FTX and Paradigm for 50% less fees, compared to trading two individual contracts outright. Topped off with the convenience of needing to execute just one trade, the cost of rolling positions or taking views on the yield curve has never been cheaper.
Get access to deeper liquidity
Spread trading on Paradigm offers an efficient way to execute multi-leg, delta neutral strategies, regardless of how big your order is. Paradigm market-makers can quote prices much tighter given the much lower risk associated with this streamlined product thereby providing FTX users with quotes at much tighter prices, in significantly larger sizes.
Trade today with FTX and Paradigm for ease of use, lower fees and deeper liquidity.
How to get started on Paradigm with FTX:
- Login to your FTX account.
- Click on "API" from the dropdown menu in the top right-hand corner of the website.
- Make sure you are on the correct subaccount, if applicable, and then click "Create API Key for SubAccount Name". Ensure to record the "API Key" and "API Secret" value.
- Click the pencil icon in the "Permissions" column in the API Keys table and toggle on the "Block Trades" permission.
- On your Paradigm Dashboard, select the "Account" tab under "Derivatives (Listed) -> FTX".
- Click on the “+” sign.
- You have the option to customize this: enter a nickname for the API key. If the FTX API key corresponds to a subaccount, please enter the subaccount name that corresponds to the key from the FTX GUI.
- Select the “Add” button.
- You can configure multiple FTX API keys or re-use your single main FTX API key and enter multiple API credentials on Paradigm where only the "Subaccount" name value is different for trades to clear via different FTX subaccounts.
Please note that FTX has restricted jurisdictions. Further, this offering is subject to eligibility and restrictions pursuant to applicable law. For more details, please refer to our page here.
Leg pricing assignment methodology
Paradigm’s leg pricing methodology attempts to take the quoted strategy prices as entered by the maker and calculate individual leg prices subject to the following broad constraints:
- Calculate leg prices as close to the mark as possible.
- Leg prices must align with the increments of minimum tick size for a particular market.
Leg prices must be within the Min and Max prescribed by the exchange for each leg.
Important pricing points to consider
Trade rejection due to timing differences between initial Price Band check (on Paradigm) and final price band check (on FTX).
- After the Maker selects executable prices, Paradigm conducts a price band check for the quoted strategy to ensure that the price(s) entered by the Maker are within the permissible price bands set by the exchange. These price bands are calculated by Paradigm using the Min and Max of the individual legs in the strategy.
- However, FTX performs its own price-band check at the time of trade execution i.e AFTER the trade message is submitted to FTX.
- Consequently, there is a time lag between the initial price band check performed by Paradigm (after Maker enters executable prices) and the price band check performed by FTX (at the ). This time lag may vary depending upon when the Taker decides to confirm the price, but is capped at a max of 20* seconds (plus a minimal amount of time it takes for FTX to receive the trade message transmitted by Paradigm.
- During this time, there is a chance that the price bands for the individual legs have changed meaningfully enough to cause the executed price to be outside the new price bands for the quoted strategy. If this is true, FTX will reject the trade.
* 20 seconds corresponds to the longest setting for the trade execution window on Paradigm, configurable via the web dashboard.
Paradigm fees for FTX products are free. FTX still charges fees on trades executed on the platform however, if you print two legs of a trade at once through Paradigm (i.e. spreads), you will benefit from a 50% fee discount on that trade.
Note: Fees on these fills are exempt from referral rebates.
Fills through Paradigm will show up with type "OTC" in the /fills endpoint. They are not reported over FIX, as no off-market fills are reported over FIX.
At 10pm UTC on October 4, the displayed fill type for Paradigm trades orders will change from 'OTC' to 'Block'. API responses (over REST and websocket) for fills will also have the 'type' field change from 'otc' to 'block'.