Direct Payment Process – Cryptocurrency and Fiat Support
Direct payment processing in fiat and cryptocurrencies will be possible through CoinMetro’s stable banking relationships fostered by its registered and licensed eMoney status in Georgia and Estonia which it is currently pursuing. This feature will be available to both direct CoinMetro clients and to third-party clients, such as companies running their own ICO through our easy-to-use blockchain infrastructure.
CoinMetro Debit Card
To provide clients with instant access to their CoinMetro wallet balances, we plan to offer a CoinMetro debit card. We envision that clients will be able use the CoinMetro debit card to access their cryptocurrency wallets or fiat wallet and withdraw cash instantly at certain ATM locations worldwide. Having already implemented a successful debit card system for FXPIG, our team has a comprehensive understanding of the logistics of this space and we have developed a solution designed to provide maximum flexibility and utility to CoinMetro users. Clients may choose a default account for use with the card as well as a list of secondary accounts that can be debited in case the balance of the default account is insufficient to cover the requested transaction. When using the card at an ATM, the system will check the balance in the default account first. If a conversion is needed to the withdraw currency, an order will hit our matching engine to perform the conversion instantly, eliminating inconvenient delays in processing time. If the default account has insufficient funds, the secondary accounts will be debited.
We propose that CoinMetro’s underlying risk management strategy will use designated margin wallets to mitigate damages and prevent losses when trading using borrowed margin on our give and take lending platform. Position losses will be covered by funds in a trader’s margin wallet, which serve solely as collateral. If the net value of a trader’s account falls below the required maintenance margin, their position will be forced into liquidation. To open a position, we propose that a trader will be initially required to allocate 30% margin based on the desired position size. Should the net value of the account fall below 15% of the value of the margin position, the account will be liquidated.
Decentralization and Atomic Swaps
Generally, cryptocurrency exchanges are at least “semi-centralized,” given that assets are often held by the exchange on behalf of its client base. The move toward fully decentralized exchange mechanisms has begun, and CoinMetro plans to take a proactive approach to this technology. The CoinMetro team sees technology like Polkadot, Cosmos, and Aion approaching, and understands that atomic swaps and cross chain communication will be extremely significant going forward. CoinMetro intends to offer atomic swap-like ‘peer-2-peer secure exchanges’ using time locked smart contracts where no third party intervention is needed to complete the transaction. The smart contract will act as a form of timed escrow, ensuring that both parties are protected in the event that one party defaults on the transaction. It is intended that this exchange mechanism will carry fees that will be almost zero from our side, as it will be considered an added service for clients who are trading smaller volumes and those that do not require immediate execution.
The Matching Engine will allow clients to send both standard and non-standard order types, including: Markets, Limits, Stops, Limit Stop Orders and OCO (One Cancels Other) orders, which are a combination of Stop and Limit orders on the same ticket. The system will also allow for several different TIF (Time in Force) options, such as FOK (Fill or Kill), IOC (Immediate or Cancel), and GTC (Good till Cancelled).
Charting will be powered by a professional grade HTML5 library that allows users to customize their layout with a few clients and add in multiple time and price studies or indicators with ease. Using a simple drag-and-drop interface, clients will be able place stop and limit orders based on pre-calculated risk to reward settings. To reduce latency for higher frequency traders and to simplify the order enter process one click trading will be available right from the chart. Historical trades, both filled and pending orders, can be plotted on the chart, as well, so the client will be able to see a graphical representation of their account activity.
The platform is intended to be accessible from both a web browser and via our own CoinMetro-branded iOS and Android apps. API access and FIX 4.4 connectivity will be available. Following the approach of our strategic partner, FXPIG, API and FIX access will be open to anyone who requests it, with no minimum volume requirements or access fees.
CoinMetro’s unique lending platform is intended to give passive investors an opportunity to earn interest on their cryptocurrency balances and create potential for under-capitalized traders to increase their profits. Our lending platform is envisaged to work by letting lenders state their daily rate on which they are prepared to lend; borrowers will be able to accept and immediately use the underlying assets as margin. CoinMetro plans to offer BTC, LTC, and ETH lending options.
Exchange Fee Structure (Bonus)
Our proposal intends that takers on the exchange, or clients who place orders that are filled immediately, will pay a commission on all executed orders, starting from a MAXIMUM of 0.10%. Makers onto the exchange, clients who place limit orders below the ticker price on the buy side, and above the ticker price on the sell side, will receive rebates that account for up to 50% of any fee charged to the taker that eventually hits their resting orders. If two makers’ orders are eventually matched (i.e. neither side is matched immediately) neither will be paid a rebate, but no commissions will be charged to either side.
Cryptocurrency Wallet – Supported Cryptocurrencies
CoinMetro’s cryptocurrency wallet system will allow clients to hold, deposit and withdraw in the five largest digital currencies by market capitalization (~80%):
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Ethereum (ETH)
- Ripple (XRP)
- Litecoin (LTC)
By partnering with BitGo, the industry leader in multi-signature, multi-currency wallets, CoinMetro plans to offer clients convenient and secure services through BitGo’s multi-signature technology.
Following our initial launch, CoinMetro plans to incorporate support for additional wallet platforms, adding more and more assets over time. Immediately after launch we will look to add support for the complete list of top ten cryptocurrencies mentioned on Coin Market Cap (https://coinmarketcap.com), including Monero (XMR), Dash (DASH), NEO (NEO), and BitCoin Gold (BTG). We will also look to add NEM (XEM) given that we will be developing tools based on the NEM blockchain. We plan to add additional assets over time, including ERC20 tokens, which will form the base for our EFTC platform (Section 3.3.2).
Liquidity provider relationships, fostered by our strategic partner, FXPIG, allows us to offer clients access to 1:50 leverage when trading non-deliverable OTC digital assets, either via our browser based platform or through an API or FIX connectivity. Leverage on our matching engine will be capped at 1:10 initially when trading using borrowed margin by way of our give and take lending platform. Higher leverage will be made available to clients with a proven track record of low risk operations on a case by case basis. Via our partnership with FXPIG, CoinMetro intends to offer FIX and API access to our exchange by way of a Prime of Prime model where FXPIG is the margin/credit provider. This will give individual and institutional traders access to exchange grade liquidity, spreads, and execution quality, paired with CFD like available leverage.
We believe that giving people additional opportunities to earn by engaging with the platform will incentivize client participation, retention, and enthusiasm. It also ensures more liquidity within the engine, which keeps spreads low and generates higher overall volumes. We intend for users to be rewarded for participation in COIN, and for the scope of rewarded activities to grow and change as the platform develops. At release of the CoinMetro platform users will be rewarded for simply signing up to CoinMetro and creating a wallet, using the exchange for the first time, referring friends to the platform, and completing user feedback forms designed to help the team improve the platform.