MXC Index Product selects cryptocurrencies of good liquidity as underlying assets. The weightings of the underlying assets in the index product is based on the the proportion of their daily average trading volume in the last 30 days. As such, it can reflect the overall performance of the underlying asset class. Currently, MXC Index Product includes major cryptocurrency index, halving cryptocurrency index and public chain index.
MXC Index Product belongs to open-ended fund. It rises/falls based on the underlying asset portfolios. Users can earn averaged profit of the underlying asset class by buying/selling Index Product shares.
MXC constructed the following Index Products. For specific weighting, please refer to the right column of the trading page.
(1) Major Cryptocurrency Index - MX01
Samples including: BTC, ETH, EOS, XRP, BSV, LTC, BCH, ETC
(2) Halving Cryptocurrency Index - MX02
Samples including: BTC, BCH, BSV, ETC, DASH, ZEC
(3) Public Chain Index - MX03
Samples including: TRX, NEO, BTM, QTUM, VET, ONT
II. Principles for Sample selection for MXC Index Product
To ensure MXC Index Product represents asset class comprehensively, MXC takes the underlying assets’ market cap, trading volume, liquidity, fluctuation, stability, risks and market assessment into consideration to select the most representative cryptos as the samples for index Products.
To ensure MXC Index are investable, MXC will verify the weighting of the samples in the index in every regulated period. It will remove or adjust the sample’s weighting based on its market capitalization (The impact of removing samples of small market value on the index price is negligible. )
To ensure transparency, MXC displays the net asset value (NAV) of the index on the trading page. Besides, the sample’s weighting and price is indicated in real time. This will provide reference for users who want to buy the Index Product.
III. MXC Index Product Construction Method and Calculation Formula
t0: the benchmark time in construction of the index;
tn: the latest time of the index Product;
M(t0): benchmark price of the index Product at the time of t0;
M(tn): the price of the index Product at the time of tn;
Pi(t0): the trading price of the i underlying asset at the time of t0.
Pi(tn): the trading price of the i underlying asset at the time of tn.
Mi (t0): the initial market cap weighting of the i underlying asset at the time of t0: Mi (t0)= daily average trading volume of the underlying asset in the last month / the sum of the average trading volume of all underlying assets in the last month; (According to investable principle, the weighting will be adjusted manually in reference to the daily average trading volume)
IV. Introduction of Re-adjustment Mechanism for Index Product
(1) MXC will adjust the index components and their weightings in every 30 days with the issuing date as the benchmark time (that is May 27).
(2) Index samples adjustment: MXC will remove the index samples of high risks that no longer meet the sample selection criteria, and take the adjustment date as the benchmark date to recalculate index price and index net value.
(3) Index weighting adjustment: Normally, MXC will adjust the weighting of the index samples based on their daily circulating market cap in the last 30 days.
V. Introduction for Index Product Construction and Net Value Calculation
MXC Index Product is an open-ended index fund. Investors can gain average profit of the market by tracking the rise & fall of index Product. Normally, the rise and fall of the theoretical net value of MXC index product is basically the same as the rise and fall of the index price. The only difference is the setting of the benchmark price. When dividend, merger, split, and management expense happens, it may result in the inconsistency between the variation of the theoretical net value of index product and that of the index price. If so, we will issue relevant announcements.
VI. Index Product Purchase and Sale Principle
- Index Product follows “buying by amount while selling by total” principle. i.e. users enter purchase amount and the system will distribute a number of shares of the index after the purchase succeed. Upon selling, users enter selling total (shares) and the system will distribute sale amount to the user after the selling succeed.
- Index Product follows “Unknown Price” principle, i.e. the purchase/selling price is based on the real-time net value of the index, which may deviate from the reference net value upon submitting the buy/sell application.
(1) Purchase net value=purchase amount * (1 – purchase fee rate)/purchase total; 4 decimal places will be kept;
(2)Selling net value = Selling amount / (1 – selling fee rate) / selling total; 4 decimal places will be kept;
- The purchase/sale follows “first come, first served” principle, i.e. purchase or selling orders will be executed in order.
- If the purchase/selling application has not concluded and is in “applying” state, the user can cancel the application. If not, the user is unable to cancel the order.
- For the purchase/selling order, there are only filled or failed cases; there’s no partially filled case, to protect user’s right.
- If a large number of purchase/selling applications place in a short period, it may bring large impact to the samples of the index. As a result, it may cause large price swing for underlying samples and liquidity risks, and, therefore, aggravate fluctuation risks of the theoretical net value of the index Product, resulting in unnecessary losses for users. In this connection, if the market fluctuates abruptly or a large number of purchase/selling applications place in a short period, the risk control mechanism may be triggered causing the failure of purchase or selling. In the case, please try again after the market becomes stable.
VII. FAQ for MXC Index Product
1. What are the costs for user in buying Index Product?
Users who subscribe or redeem Index Products shall pay service fee with fee rate of 0.2%
After users buy Index Product, MXC will buy an equivalent value of underlying cryptocurrencies. Therefore, the users shall pay service fee with fee rate of 0.1%.
2. What does Index component and their percentage mean?
Index component means the underlying cryptocurrencies that constitute the index Product, n% means percentage of the underlying assets in the index Product.
3. How to check Index Product records?
In fact, Index Product is a portfolio of spot assets, so users can check the details of the holding of Index Product in the spot account.