KuMEX, the derivatives platform of crypto exchange KuCoin, has increased the maximum leverage provided to traders from 20x to 100x for the offered Bitcoin perpetual contracts.
The exchange detailed that the leverage will be provided to the clients who completed their know-your-customer (KYC) requirements on the platform. Traders can deposit total collateral of 100 USDT to receive leverage between 0.01x to 100x.
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#KuMEX has increased the maximum leverage to 100x for Bitcoin Perpetual Contract. Users can now select any leverage between 0.01x and 100x.
【More info】https://t.co/Qv2Gzo6LoW pic.twitter.com/Bb9Nlyi6uz
— KuMEX (@KuMEX_Official) December 19, 2019
Commenting on the move, Michael Gan, chief executive of KuCoin, said: “We have recently started seeing emerging needs within Bitcoin futures trading from both retail traders and institutional investors. Our futures trading platform KuMEX has proved its stability and security over the last few months, and so we are happy to introduce the 100x leverage feature, which will help our users develop a more tangible trading strategy.”
Can it compete with major players?
The crypto exchange launched its derivatives exchange in the middle of this year and used the same Bitcoin Spot Index used by the major platforms like Coinbase Pro, Bitstamp, and Kraken to avoid contracts being liquidated due to large price fluctuations of just one or two spot exchanges.
The derivative platform also launched Bitcoin quarterly futures contracts, which have no expiry date.
Founded in 2013, KuCoin is one of the exchanges with a wide range of offerings to the traders. The exchange conducted a Series A funding round last year and raised $13 million from well-known investors, including IDG Capital, Neo Global Capital, and Matrix Partners.
The exchange is focusing on global expansion, mostly in the European and Asian markets, and as already added support with nine languages.
Meanwhile, the crypto exchange also added the margin trading with its native KCS token and providing leverage of 10x to the traders.