MADBTCUSD FAQ

How is MADBTCUSD Index Calculated?

MADBTCUSD is calculated based on the following formula:

MADBTCUSD Index

$$\begin{align*} \text{drift} &= \left( \frac{\text{btcCurrentPrice} - 1}{\text{btcLastSecondPrice}} \right) \times 5 \\ \\ \sigma &= \frac{\text{expectedvol}}{\sqrt{3600 \times 24 \times 365}} \\ \\ norm &= \text{norminv}(\text{Random}, 0, 1) \\ \\ S_{n+1} &= S_{n} \times e^{\left[\left(\text{drift} - \frac{\sigma^2}{2}\right) \times \text{dt} + \sigma \times \sqrt{\text{dt}} \times norm\right]} \end{align*}$$

where:

• Initial Sn=1000

• dt=1

• expected vol：100%(expected vol is the expected time volatility of the MADBTC)

• the "Random number" is calculated based on the current BTC price with 8 decimal places of precision

Calculation of Random Number:

import hashlib
from decimal import Decimal

# Assume the current price of Bitcoin is 48923.56789101
bitcoin_price = Decimal("48923.56789101")

# Calculate the SHA-256 hash of the Bitcoin price
price_hash = hashlib.sha256(str(bitcoin_price).encode('utf-8')).hexdigest()

# Extract the first 8 hexadecimal numbers from the hash
hash_substring = price_hash[:8]

# Converts a hexadecimal string to an integer
hash_integer = int(hash_substring, 16)

# Divide the integer by 4294967296 (the decimal number corresponding to the hexadecimal number FFFFFFFF) to get a num
random_number = hash_integer / 4294967296
# Print the random number
print(random_number)

If the random number determined is 0, it will be recalculated again

Where can I cross-verify the BTC and MADBTCUSD historical price?

The BTC and MADBTCUSD price feed can be found here:

BTCUSD

MADBTCUSD

Historical backtest data of BTC & MADBTC

To cross-verify the BTC & MADBTC historical prices, we've provided a backtest graph below.