USDBTC
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The forward price of Bitcoin is the price of Bitcoin at a date and time in the future. The difference between the spot price and forward price, the basis, covered in the .
Sidepit L2 is for trading the forward bitcoin price of dollars
USDBTCH25 is the price of USD in Bitcoin on March 28th, 2025, at 6 PM PT.
Imagine you believe Bitcoin will drop from $100k to $80k by Christmas, you have .005 bitcoin, and wish to give a gift of $500 worth of bitcoin:
You hedge at Sidepit:
Buy 1 ($500 contract) at 1000 (SATs per dollar)
Sell 1 ($500 contract) at 1250 (SATs per dollar)
250 tics profit × 500 = 125,000 sats
125,000 sats = 0.00125 Bitcoin
0.00125 × $80,000 = $100 profit
Starting BTC Balance: 0.005 BTC ($500 at $100,000)
Ending BTC Balance: 0.00625 BTC ($500 at $80,000)
Success! You still have your $500 worth of bitcoin to give as a gift!
Buy 1 at 1000 Limit This means that on March 28th at 6 PM PT:
You agree to buy 500 USD for 500,000 SATs.
You agree to sell 0.005 BTC for $500.
Now you have an open Long position on USD.
Sell 1 at 1250 Limit This means that on March 28th, 2025, at 6 PM PT:
You agree to sell $500 for 625,000 SATs (1250 SATs per dollar * 500 dollars)
You agree to buy 0.00625 BTC for $500.
This closes your Long position and leaves you flat.
After Mar 28th your .00625 bitcoin account balance, will be unlocked back to your Sidepit-id wallet!
