> For the complete documentation index, see [llms.txt](https://docs.pancakeswap.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.pancakeswap.finance/trade/perpetual-trading/perpetual-trading-v2/madbtcusd.md).

# MADBTCUSD

Higher Volatility BTC Trading

**1. What is MADBTCUSD Index?**

The MADBTCUSD Index is an algorithmically generated price index that encapsulates the dynamic movements of BTC but with an added twist – it exhibits significantly higher volatility. This index is derived using the Geometric Brownian Motion (GBM) derivatives pricing methodology, a mathematical model commonly used in the world of finance to simulate the unpredictable nature of assets.

**2. How Does It Work?**

The MADBTCUSD Index is primarily based on the price of Bitcoin. It mirrors the general ups and downs of BTCUSD, but it does so at an amplified rate (expected volatility of 100%), resulting in an index with significantly more pronounced price swings. To maintain transparency and fairness, the MADBTC price can be cross-verified through the BTC price and MADBTC historical price data ([here](/trade/perpetual-trading/perpetual-trading-v2/madbtcusd/madbtcusd-faq.md)). This ensures that the index accurately reflects the movements in the underlying BTC market.

One key feature that sets MADBTCUSD apart from traditional cryptocurrencies is the element of randomness. The price of the MADBTCUSD contract is algorithmically generated using a combination of the corresponding contract's data and a random number. There is no impact of buyers and sellers on price of the MADBTCUSD index.

**3. Market Availability:**

Currently, MADBTCUSD Index is available in Classic Mode on BNB Chain, alongside other major markets like BTCUSD, and ETHUSD. The contract offers additional benefits such as zero position open fee, PnL based position close fee and up to 250x leverage.

If you're intrigued by the concept of MADBTCUSD and want to explore the intricacies of this contract further, here’s a dedicated [FAQ](/trade/perpetual-trading/perpetual-trading-v2/madbtcusd/madbtcusd-faq.md) page to provide you with a comprehensive methodology.

***It's important to note that due to its extreme volatility, MADBTCUSD may not be suitable for all traders, so it's essential to conduct your research and fully understand the risks involved before participating***


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