Magnr
Magnr was a multinational company that engages in bitcoin trading, savings and investment for digital currencies. The company operates across two verticals offering a bitcoin leveraged trading platform for retail traders and a bitcoin interest bearing savings account.[1] It was founded in 2015 and is headquartered in London's Silicon Roundabout, the origin of its trading platform dates back to 2013 when the company operated as Btc.sx. At the time ZDNet reported Btc.sx to be one of the first bitcoin companies that voided the necessity of all other currencies other than Bitcoin.[2] The company was launched from Old Street, London and is run by CEO Colin Kwan a former Deutsche Bank VP. The founding team includes veterans with experience from Barclays, eBay and Jaguar Land Rover they are Joseph Lee, James Turner, Sergio Rodriguez and Kwok Man.[3]
| Trading name | Magnr |
| Industry | Trading, Savings, Investments, Financial Services |
| Founded | January, 2014 |
| Headquarters | London |
| Website | https://magnr.com |
Saving
How it works
The Bitcoin deposited at Magnr is used to fund leveraged trades at Magnr Trading. The traders pay an interest rate to execute leveraged trades, which is then passed back to Magnr savers.
After a fixed introductory rate, a variable interest rate will be used. This rate will vary according to trading activity on Magnr Trading.
Rates and Information
- The current introductory Interest Rate is a fixed rate of 2.18% annual equivalent with interest payments made at the end of every month
- After the introductory period, interest will be earned on a variable rate
- Interest accrued compounds on a monthly basis
- The maximum amount you can earn interest on is 100 bitcoins
- You can deposit more than 100 bitcoins for safe storage, however interest will only be paid on 100 bitcoins
- Withdrawals can be made at anytime, interest is earned on the balance held on your account
Trading
Buying and selling
Users of Magnr Trading can open long and short positions using the proprietary trading platform. A corresponding buy and sell order is then placed out to market at a matching exchange with or without leverage. All positions opened will have a corresponding position placed out to market meaning that any profits gained or losses generated from market movements will be passed on directly to the client.
Position Deposits
Trading at Magnr is done on a pre-paid basis. In order to open a position, a deposit is taken which acts as collateral. This collateral will act as an equivalent of a margin call. This is the price at which a position will be automatically liquidated if losses accrue to the deposited amount. The margin call is shown as a stop price when the position is opened. A larger deposit will enable a bigger stop distance to be chosen. This can result in larger losses if the price moves against the desired direction.
Features
Leverage - 10:1, 5:1, 2:1
Volatility Multiplier - 10% ~ 20%
Execution Type - at best execution
Minimum Trade Size - $5 equates to ~$50 Trade at 10:1
Maximum Trade Size - $1000 equates to ~$10,000 Trade at 10:1[4]
Fees
BTC
Deposit - zero fees (minimum of 0.001 Btc)
Withdrawal - zero fees (minimum of 0.001 Btc)
Funds are deposited once 3 confirmations are recieved, this is a process that typically takes 30 minutes.
USD
Magnr does not accept fiat. All positions deposits are in Bitcoin.
Trade Fees
Open and Close - 0.5%
Gap Losses - zero
Risk Matrix
As well as magnifying trading gains, losses can similarly be multiplied. For beginners, it is widely reccomended that trading with a smaller amount of leverage will result in a lower risk whilst learning about the platform while trading. Despite its higher minimum deposit, potential losses will be minimised due to the unlikely nature that a stop limit will be reached.[5]
| Leverage | Stop Distance | Risk | Return (Profit or Loss) | Minimum Deposit |
|---|---|---|---|---|
| 10:1 | Small | High | High | $5 |
| 5:1 | Medium | Medium | Medium | $10 |
| 2:1 | Large | Low | Low | $20 |
Reception
Following the Mt. Gox collapse, Btc.sx announced a new exchange partnerships with Bitstamp, itBit and BitFinex now placing its orders out to market. The trading platform announced in March 2014 the brokerage of over $40m in brokered transactions.[6]
Capital investments
In April 2014, Btc.sx recieved 500 bitcoins from the seed accelerator, SeedCoin in its first fund raising round.[7] The company has recieved a total of US$0.45 million investment as a result of initial capital injections and its equity fundraising activities.[8]
References
- Blatchford, Josh (2015-06-17). "Magnr Launches World's First Blockchain Based Bitcoin Savings Accounts". PR Newswire. http://www.prnewswire.com/news-releases/magnr-launches-worlds-first-blockchain-based-bitcoin-savings-accounts---latest-btcsx-product-300100853.html.
- Lee, Michael (2013-08-22). "Startup opens Bitcoin-only margin trading platform". ZDNet. http://www.zdnet.com/startup-opens-bitcoin-only-margin-trading-platform-7000019715/.
- "Meet the founding team behind Magnr". Magnr. https://magnr.com/meet-the-team. Retrieved 2015-12-18.
- Magnr - Trading Fee Schedule
- Btc.sx - What is Leveraged Trading?
- CoinDesk - Bitcoin Derivatives Platform BTC.SX Resumes Trading After Mt Gox-Induced Freeze
- CoinDesk - Trading Site BTC.SX Receives 500 Bitcoins in Seedcoin Funding Round
- ZDNet - Startup opens Bitcoin-only margin trading platform