North American Derivatives Exchange, Inc. d/b/a Crypto.com | Derivatives North America has self-certified the terms and conditions for the CRO Crypto Contract.

The new CRO Crypto Contracts will be cash-settled and will operate in the same fashion as the Exchange’s currently listed Touch Bracket Contracts, including the BTC, ETH, LTC, AVAX and DOGE Touch Bracket Contracts. Touch Bracket Contracts are not only quite popular in markets with high volatility, such as the cryptocurrency markets, but due to their unique structure, inherently minimize the possibility of contract manipulation.

A Touch Bracket Contract is a type of Variable Payout Contract and is similar to a Call Spread in that it contains a predetermined Ceiling and Floor price level. However, unlike a Call Spread Contract, if the Underlying market, as reflected in the corresponding Indicative Index, for a Touch Bracket Contract equals or moves through (i.e., “touches”) either the Ceiling or Floor level of a Touch Bracket at any time prior to the listed Expiration time, the Touch Bracket Contract will immediately expire.

In the event the Underlying market does not touch the Ceiling or Floor prior to its listed Expiration time, the Touch Bracket will expire at the listed Expiration time, which will occur on the last trading day of the week. Accordingly, the Exchange categorizes its Touch Bracket Contracts as “weekly” Contracts.

The value of the CRO Crypto Contracts is based upon the pricing characteristics of each cryptocurrency commodity and will be $100 for each CRO Crypto Contract. The Expiration Value of the CRO Crypto Contracts will be the Indicative Index value calculated by the Exchange at the time that Indicative Index Value either equals or is greater than the Contract’s Ceiling, is equal to or less than the Contract’s Floor, or at the listed Expiration if the Contract is not knocked-out early.

Consistent with all other Contracts currently traded on the Exchange, the CRO Crypto Contracts will be fully collateralized.

Each CRO Crypto Contract will be listed with four concurrent brackets of the same width, but each with its own offset to the Underlying market. This structure allows a participant who wants to express the opinion that they believe the market is going down by selling the same positive risk to reward composition as a trader who believes the market is going to go higher and therefore wants to buy.

Additionally, each CRO Crypto Contract will have a tick size equivalent to 0.00004 per point, with a tick value of $1.00, and a contract value of $100. As a type of Variable Payout Contract, the CRO Crypto Contract will have a variable payout at settlement. The settlement payout, or Settlement Value, is dependent on the difference between the Opening Trade Value and the Closing Trade Value or Expiration Value.

The Exchange plans to list the CRO Crypto Contracts based on the Underlying CRO cryptocurrency commodity market and settle the CRO Crypto Contracts using data from Lukka Inc.

Regular trading in the CRO Crypto Contracts will begin at 11:00 pm ET on Friday evening, and expire at 4:15 pm ET on Friday afternoon, unless knocked-out prior to the stated Expiration time.