Zubr is a digital currency exchange that is aimed at professional traders. The venue that was launched in early March 2020, in Gibraltar, delivers cost-effective hedging for its customers offering the environment and efficient infrastructure designed for cryptocurrency derivatives. All users of the London-based arbitrage hub can take advantage of equal conditions and low commissions.
The trading software of the venue demonstrated very good results when it was stress-tested by Exactpro, the same tester that vets the systems of the London Stock Exchange. A high-frequency trading feature, a trading engine, and risk management protocols fully answered the requirements of the tester, which analyzed the documentation and conducted risk assessment along with the several rounds of testing. The tech superiority of the company contributes to the trading activity of its customers allowing them to experiment with different trading strategies, without worries over the stability and market-leading speed of LD4 infrastructure.
The company pursues the goal to become a European-regulated company, but there are no details on the subject at the time of writing. The exchange employs algorithmic and high-frequency trading strategies. The company accentuates the importance of fair play as the only sustainable way in the world of business even if it’s too time-consuming and expensive. The company sets the goal of creating a fair competitive environment known for its transparency where participants with natural strengths become winners.
The mission of the ZUBR project
Despite the abundance of resources providing trading services, the team of developers working over ZUBR still thinks that the market lacks a trading venue that is motivated to deliver enhanced and more transparent tools for trading activities. The customers have to put up with compromised solutions for this reason. Unfortunately, short-lived promises and bold assertions prevail in the industry. However, ZUBR plans to develop a premium quality service even if there is a necessity to sacrifice something for that. The company is dedicated to self-perfection and constant development in the sphere to set the pattern on the market.
ZUBR platform and instruments
ZUBR exchange delivers a high-quality service to cater to traders looking for a fair and trustworthy gateway to digital asset markets. The list of services provided on the exchange includes perpetual contracts (with up to 20x leverage) that differ from futures contracts traded on traditional markets since the perpetual contracts don’t expire. The price of perpetual contracts is tied to the index with a funding mechanism that uses a special formula for that.
Much attention is paid to fair market prices on the platform. The instruments traded on ZUBR are based on the composite index obtained with calculations in accordance with a scheme that guarantees fair market prices. The mechanism employs the price data from such exchanges as Gemini, Bittrex, Kraken, Bitstamp, and Coinbase Pro. To be more exact, the index consists of 20% of the price from each source mentioned above. The actual data is employed for calculation which means that the platform should be active at the time of calculation. In case of technical problems experienced by one of the platforms, or if something prevents the feeding, the data is excluded from the calculation. There is a special protocol of rules for such cases. Also, the mechanism excludes the data from the resources where the deviation of the price is too big to avoid the situation of index value deviation from the fair price of the underlying asset. In case the data is not updated within 15 seconds, the data from such a source is excluded from the calculation.
The venue offers two margins: cross margin and isolated margin. In the first case, customers do everything at their own risk and funds can be lost in case of failure. In the case with an isolated margin, a part of a portfolio can be lost in a transaction. The negative balance is compensated with the Zubr insurance fund. The collateral can be liquidated when the negative scenario develops.
The platform has chosen the Avelacom network that provides low latency connectivity services and unprecedented execution speed on cryptocurrency markets of APAC and Europe. Avelacom enables direct connectivity to cryptocurrency exchanges also providing easy scalability of the ecosystem by means of connection of its clients via Alibaba, AWS, Microsoft Azure, and Google Cloud to platforms scattered throughout the world from Dublin to Tokyo and Hong Kong.
Ilgar Alekperov, CEO of ZUBR, is sure that fast connectivity is a key to success, therefore the main emphasis is made on the development of the trading infrastructure and best connectivity speed. Excellent speed gives a competitive edge to the company in comparison with the services offered by other market participants.
The customer base of the ZUBR platform includes the proprietary trading firms and individual traders working on numerous cryptocurrency markets. Many of them prefer using arbitrage and latency-sensitive strategies to take advantage of cryptocurrency volatility on the market. The company is running KYC and anti-money laundering checks on all onboarded customers in accordance with FATF and AMLD5 recommendations for businesses in the industry.
ZUBR fees and financial details
The settlements are conducted on Bitcoin only. It is possible to deposit BTC and withdraw it as well. No fee is taken for depositing, while the withdrawal fee is 0.01%. The platform uses the same fee structure for all customers as both takers and makers have to pay 0.01%.
ZUBR team and partnerships
The team behind the platform tries its best while working on the service so that their clients could be able to achieve their goals with its help. The company was founded by Ilgar Alekperov, CEO, who used to be an entrepreneur before. Ilgar is a former co-head of algorithmic trading at Alfa Bank, the first largest privately held bank in Russia. He studied applied mathematics and informatics at the Saint-Petersburg State Electro-Technical University. Apart from Exactpro tester and Avelacom mentioned already, the company also partners with full-service blockchain firm Bitfury and a Gibraltar-based international law firm Isolas.