Overbit FAQ

About Overbit

What is Overbit?
Overbit is a leading provider for crypto derivative trading. Overbit’s innovative leveraged trading platform allows cross-market trading using Bitcoin as the underlying asset.

 

Accounts and Verification

Do I need to pass KYC (Know Your Customer) verification to be able to use Overbit?
Overbit operates a KYC (Know Your Customer) verification system. You can sign up for an account, make a deposit and start trading. But you will need to have completed KYC before withdrawals are approved.

How do I upload my documents to Overbit?
Go to https://accounts.overbit.com/kyc . There you can follow the instructions to upload the required documentation.

How do I update my account details?
Once you are signed up, you are unable to edit your name and address. Please raise a support ticket and explain why you are changing your details. You may be required to supply evidence to support your request.

Can I have more than one account?
We recommend clients focus on one trading account, and we reserve the right to close subsequent accounts. However, each case will be assessed on an individual basis. If an additional trading account is permitted, it must be operated independently and it is not possible to transfer funds between the two accounts.

 

Deposits and Withdrawals

How do I deposit funds?
On your Overbit dashboard, click on the Deposit button (https://accounts.overbit.com/deposit) and you will see your dedicated Bitcoin deposit address.

Are there fees for deposits or withdrawals?
There are no fees for depositing Bitcoin with Overbit. You will be charged a small withdrawal fee, which is simply the Bitcoin transaction fee.

What is the minimum deposit to trade on Overbit?
You will need to deposit enough to pay for the initial margin of a trade. Let’s say you trade on XBTUSD with 30x leverage. The minimum quantity is 0.01 XBT.

The initial margin calculation =(1 * Quantity)/Leverage + Spread.
Let’s say XBTUSD is $4,020 (Buy Price) and $4,000 (Sell Price).

The calculation = (1*0.01)/30+20 = $20.00033 or 0.005 XBT

When will you process my withdrawal?
For security reasons, withdrawals are processed once per day. Please submit your withdrawal request before 12:00 UTC time and it will be processed within 6 hours of that time.

 

Contracts and Markets

What markets can I trade on Overbit?
Overbit allows you to trade on the most liquid cryptocurrencies, metals, and indices. For a current list of available markets, please visit www.overbit.com/markets

Will I get delivery of the contracts I buy into?
Overbit facilitates margin trading only. The notional value of trades is calculated in XBT. You will not get delivery of the asset you are taking a position on. For example, if you buy XBTXRP and you close your position in profit, you will receive a profit in XBT. Similarly, if you make a loss, you will have XBT deducted from your balance.

What is a perpetual contract?
The perpetual contract is one that never expires. The price of a contract is similar to the spot price, but you have the option to use leverage, which could reduce your cost of capital. The contract works in a similar way to CFD (Contract For Difference) contracts. It means you can go Long or Short on a larger amount of Bitcoin (or Bitcoin value equivalent) against another instrument such as USD, ETH, Gold (and more). You simply need to have enough funds to cover the margin (difference in overall price movement).

How does Overbit determine the price of a contract?
For each instrument, we have selected exchanges with the highest real trading volumes. We then take a dynamically weighted average of the price as per the availability from each exchange’s order book. For example, if Exchange 1 has 100 BTC for sale at $4,000 USD and Exchange 2 has 150 BTC for sale at $4,010, then the calculated price is (100/250 * $4,000) + (150/250 * 4,010) = $4,006.

Are my trades being executed on the market?
Overbit matches trades with clients through its own internal matching engine. In some cases, where trades cannot be matched, they are executed on the market using a range of exchanges that Overbit has institutional relationships with. In both of these scenarios the user is not affected and will see their trade position seamlessly filled.

 

Fees and Charges

Do you charge fees for trading on Overbit?
Overbit is mainly compensated for its services through the “market spread”. For example, when trading XBT/USD, if the Buy Price is 4,000, then the Sell Price would be 3,995 respectively (which means a market spread of 5 pips, in this example).  The spread is not fixed and changes from time to time during volatile periods to account for minimum slippage when the trade is executed. The spread is also used to guarantee liquidity for the trade and it means users can easily calculate their profit or loss for each position without taking commissions into account.

Unlike other service providers who also charge commissions on each trade, Overbit does not charge dealing commissions. For more information on the fees, please see the individual contract specification.

Are there overnight fees?
Yes, in most cases there are fees for rolling over your contract beyond 00:00 UTC. For more information on the overnight fees, please see the individual contract specification.

Are there any hidden fees?
No, there are no hidden fees. All fees are explained in the contract specification page.

 

Leverage

Does Overbit offer leverage?
Yes, you can go long or short with leverage on any contract. The maximum amount of leverage is different for each instrument.

What is an Initial Margin?
The Initial Margin is the minimum amount of Bitcoin required to open a position.

What is a Maintenance Margin?
The Maintenance Margin is the minimum amount of Bitcoin you must hold to keep a position open. If your account balance drops below the maintenance margin, Overbit will start the Auto-Liquidation process.

 

Liquidation

I had an open position that was liquidated, why?
Your Maintenance Margin was breached and as a result the Auto-Liquidation engine liquidated your position.

What is Auto-Liquidation?
Overbit operates an automatic partial liquidation policy for positions that are close to their maintenance margin. When an open position is getting close to the maintenance margin, the position is partially liquidated to allow more margin. This is also to prevent the position from completely closing.

To prevent auto liquidation process, it is recommended that traders use a stop loss where possible and have enough funds in their account to cover the maintenance margin.

Does Overbit socialise losses?
No, Overbit does not socialise losses.

 

Security

How does Overbit store Bitcoin?
Overbit uses multi-signature cold wallets for its Bitcoin. Private keys are stored offline and require the use of several individuals (located in different continents) to process a withdrawal.

Does Overbit use a hot wallet?
No, Overbit does not operate a hot wallet. All Bitcoin is stored on multi-signature cold wallets.

Does Overbit operate a bug bounty program?
Yes, Overbit has a bug bounty program. If you believe you have come across a security flaw, please notify us by email to [email protected]. If we can validate your findings, we will reward you.

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