One of Hxro’s attributes is that its core MoonRekt product is parimutuel - a system that aggregates all positions into a liquidity pool with the in-the-money positions sharing the total pool at expiration. This creates a new dimension of fairness and payoff possibilities for our user base.
The application of parimutuel technology to digital markets creates an environment that distills trading down to a simple question of higher (MOON) or lower (REKT), and a simple payoff mechanism in which out-of-the-money positions pay in-the-money positions.
Hxro’s MoonRekt contracts allow traders to take bullish (MOON) or bearish (REKT) positions in the most familiar and common technical time frames: 1-minute, 5-minute, 15-minute, 1-hour, and 1-day.
Each MoonRekt time frame runs perpetually, with the expiry of one contract marking the start of the next contract.
Traders choose whether the price of the underlying index will close higher (MOON) or lower (REKT) within the selected contract time frame.
MoonRekt contracts are peer-to-peer and utilize a parimutuel model to determine contract payoff. Therefore, these contracts do not require a trader to interact with a market maker or traditional order book. At contract expiration, in-the-money positions share the total pool on a pro rata basis.
For cryptocurrency prices, Hxro is integrated with real-time pricing data from the world's most liquid cryptocurrency exchanges. For commodities, FX and equity indices, Hxro uses real-time streaming price feeds from the leading global liquidity providers. All platform index pricing is independent and price feeds cannot be influenced by the exchange.
HOW MOONREKT CONTRACTS WORK
Will the price move higher or lower during the upcoming time period?
At the designated start time for each contract, the LOCKED PRICE is displayed. The LOCKED PRICE is the strike price for the contract. The LOCKED PRICE for each contract is the same as the settlement price or CLOSED PRICE of the preceding contract.
At the end of the contract, when the clock reaches 00:00, the CLOSED PRICE is calculated. The CLOSED PRICE is the last price of the Hxro Index on or before expiration time 00:00.
If the contract’s CLOSED PRICE is higher than the LOCKED PRICE, MOON positions are in-the-money. If the CLOSED PRICE is lower than the LOCKED PRICE, REKT positions are in-the-money. The in-the-money positions share the total pool on a pro rata basis.
At the start of the contract, all positions are aggregated into the contract pool. At the close of the contract, the in-the-money side will share the pool based on pro rata size of each in-the-money position.