# How to use Paradigm with SignalPlus

SignalPlus supports making trades on Paradigm directly. Paradigm provides institutional grade liquidity which allows users to trade with counterparty and settle in Bybit or Deribit.Currently instruments supported are Deribit BTC options strategy, Deribit ETH options strategy, Derbit, Bybit BTC options strategy, Bybit ETH options strategy, Deribit BTC Inverse Contracts, and Deribit ETH Inverse Contracts.

#### Terminology

| Paradigm     | Paradigm platform <https://www.paradigm.co/。>                                                                                                          |
| ------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------ |
| Paradigm API | API generated on Paradigm and connect SignalPlus for trading purpose                                                                                   |
| OTC Account  | Corresponding Bybit/Deribit accounts for settlement purposes                                                                                           |
| RFQ          | Request For Quote, originally Paradigm DRFQ function. This function allows you to request for quote to specific counterparty with set qty when quoting |
| OrderBook    | Open orderbook, originally Paradigm GRFQ function. This function allows you to request for quote to all the counterparties in the market               |
| Ratio        | The ratio of each leg when creating strategy quoting                                                                                                   |
| Screen Price | Asking and bidding price from the exchange for reference purpose                                                                                       |

### 1. Before You Trade

Before you use SignalPlus to do OTC trading on Deribit/Bybit, you need following checklist:

1. Register Paradigm account
2. Connect your Paradigm to Derbit or Bybit account for settlement purpose
3. Generate Paradigm API
4. Connect Paradigm API to SignalPlus
5. Match your Derbit/Bybit account on SignalPlus to the one on Paradigm

You can find more details below

[How to create API Keys - Paradigm](https://signalplus.gitbook.io/signalplus-tutorial/account-set-up/how-to-sign-up-and-create-api-keys/how-to-create-api-keys-paradigm)

### 2. Taker

As a taker, you can

* Create RFQ or OrderBook
* Select best bid/ask to execute a trade

#### 2.1 Create RFQ or OrderBook

You can use a few ways below to create RFQ or OrderBook

#### I. From Option Chain

1. In the option chain under Derbit/Bybit, select the contract you would like to trade, and click the OTC button on the top right corner in the popup window

<figure><img src="https://1545706758-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FBwKYWoBHfJ0ze3uhlaac%2Fuploads%2FRen3kYEvolyamZM0kva2%2Fimage.png?alt=media&#x26;token=d178d549-2502-4185-9d5d-dc1613c78c2e" alt=""><figcaption></figcaption></figure>

2. Select Auction Type and Confirm Details

<figure><img src="https://1545706758-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FBwKYWoBHfJ0ze3uhlaac%2Fuploads%2Fb4JFzjJJXWRsxzPXRuSo%2Fimage.png?alt=media&#x26;token=15853c06-6101-4cd5-9875-3671682ac57c" alt=""><figcaption></figcaption></figure>

3. Click Send RFQ or Create OrderBook, and you will see your RFQ or OrderBook in the new window

**II. From Smart Dealing**

1\) In the Smart Dealing module under Deribit/Bybit accoount, once you have built your strategy, you can Send to OTCEmbed anything (PDFs, Google Docs, Google Maps, Spotify…)2) Similarly, you will need to select auction type and confirm details

| Auction | RFQ                                                                                                                                                                                                                                                                           | OrderBook                                                                                                                                              |
| ------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------ |
| Info    | A. Enter the trade qty of each leg (must satisfy minimal order size) B. If there is any hedge leg, you need to enter desired price for the hedge leg C. Select counterparties D. Choose to be anonymous or not (you have to select at least 3 LP when choose to be anonymous) | A. Enter the ratio of the legs (at least one of the leg needs to be 1) B. If there is any hedge leg, you need to enter desired price for the hedge leg |

<figure><img src="https://1545706758-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FBwKYWoBHfJ0ze3uhlaac%2Fuploads%2Fv1CaqMx8inbmvCE0madO%2Fimage.png?alt=media&#x26;token=ab33e899-db1d-427d-90be-5ab6d4dc8fa0" alt=""><figcaption></figcaption></figure>

3. Click Send RFQ or Create OrderBook, and you will see your RFQ or OrderBook in the new window

####

#### III：Fram Paradigm Account

1. Enter into Paradigm Account and select Market module
2. Choose auction type between Create OrderBook or Create RFQ

<figure><img src="https://1545706758-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FBwKYWoBHfJ0ze3uhlaac%2Fuploads%2FlcnyTD75B0wvSBQ7uvX3%2Fimage.png?alt=media&#x26;token=b5d5b008-8069-4c66-b4a5-885eeec85372" alt=""><figcaption></figcaption></figure>

3\) Enter the strategy details

| Auction | RFQ                                                                                                                                                                                                                                                                                                          | OrderBook                                                                                                                                                                           |
| ------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Info    | A. Select Exchange B. Select Currecy C. Construct Strategy - Enter Leg Info - Enter Qty for Each Leg - If there is any hedge leg, you need to enter desired price for the hedge leg D. Select counterparties E. Choose to be anonymous or not (you have to select at least 3 LP when choose to be anonymous) | A. Select Exchange B. Select Currecy C. Construct Strategy - Enter Leg Info - Enter Qty for Each Leg - If there is any hedge leg, you need to enter desired price for the hedge leg |

<figure><img src="https://1545706758-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FBwKYWoBHfJ0ze3uhlaac%2Fuploads%2FlkjK3W0KAg4umuj4WgXG%2Fimage.png?alt=media&#x26;token=672b3a30-dcc7-4c13-9336-0d86f2ae7cb9" alt=""><figcaption></figcaption></figure>

4. Click Send RFQ or Create OrderBook, and you will see your RFQ or OrderBook in the new window

####

#### 2.2 Select best bid/ask to execute a trade

| Auction | RFQ                                                                              | OrderBook                                                       |
| ------- | -------------------------------------------------------------------------------- | --------------------------------------------------------------- |
| Display | After taker initated RFQ, the taker can recieve quote from assigned counterparty | After taker create OrderBook, anyone can quote on the OrderBook |

#### 2.2.1 Execute Your Trade From the List

1. Review the list

* RFQ: you can review requested RFQ and Received RFQ with bid/ask information under Market module
* OrderBook: you can review the OrderBook you created with bid/offer information under Market module

<figure><img src="https://1545706758-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FBwKYWoBHfJ0ze3uhlaac%2Fuploads%2FywA5qY1djjrKDnvfQTOe%2Fimage.png?alt=media&#x26;token=f3a95a66-7d17-400e-a0ad-9fc31cc231ca" alt=""><figcaption></figcaption></figure>

2）When you move your cursor to each line, there will be Sell or Buy button on each side. And you can buy or sell the instruments using best ask/bid price as a taker.

<figure><img src="https://1545706758-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FBwKYWoBHfJ0ze3uhlaac%2Fuploads%2Fsi9D0QnqHATEohDj8ALY%2Fimage.png?alt=media&#x26;token=8b5b4294-b098-4032-a6ed-45c7cac8b809" alt=""><figcaption></figcaption></figure>

Note: when auction type is RFQ

* your settlement account will be fixed at the time of RFQ and cannot be changed
* Trade qty will be fixed at the time of RFQ and cannot be changed

3. If you wish to see more layers of price on the list, you can click on the instrument to expand the row to see more prices and Screen Price

<figure><img src="https://1545706758-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FBwKYWoBHfJ0ze3uhlaac%2Fuploads%2Fue1uKWgvt7HmjmqXERLy%2Fimage.png?alt=media&#x26;token=e64750c8-42ca-4f60-b101-6f913efe3d6a" alt=""><figcaption></figcaption></figure>

4. You can click into the instrument to see more detail of the instrument

<figure><img src="https://1545706758-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FBwKYWoBHfJ0ze3uhlaac%2Fuploads%2FD48Uadi6FQlQFPV8GBjT%2Fimage.png?alt=media&#x26;token=8ca006b0-d81a-4bf1-83b3-7f891fba23a0" alt=""><figcaption></figcaption></figure>

<figure><img src="https://1545706758-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FBwKYWoBHfJ0ze3uhlaac%2Fuploads%2FkhUellEvk3vIYSH3xsGF%2Fimage.png?alt=media&#x26;token=e5675763-3642-4b0d-9cfd-872756c106a2" alt=""><figcaption></figcaption></figure>

### 3. Maker

#### 3.1 Receive RFQ and submit quotes

#### 3.3.1 Receive RFQ

1. If some one sends you a RFQ, you will receive a push notification on SignalPlus

<figure><img src="https://1545706758-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FBwKYWoBHfJ0ze3uhlaac%2Fuploads%2FGgGQUaUgg6DT9BGon01J%2Fimage.png?alt=media&#x26;token=d6f15612-7406-4a42-8e2d-a2eb5ae60c56" alt=""><figcaption></figcaption></figure>

2. Click to quote - you can see more quote details in the popup window

In the popup window, it will show

* From which counterparty, or from anonymous party
* Basic information for this RFQ including exchange, instruments, ratio and qty
* Mark Price, SP Model Price, and Screen Price from the exchange

<figure><img src="https://1545706758-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FBwKYWoBHfJ0ze3uhlaac%2Fuploads%2F1RDZRmGJ3oKwYICyjDdS%2Fimage.png?alt=media&#x26;token=21b6aea9-bd5a-4748-864f-cf28734122d0" alt=""><figcaption></figcaption></figure>

3. Submit Quote

* Submit Bid: Enter price in green area to submit bid price
* Submit Ask: Enter price in green area to submit ask price
* Submit two-way price: Enter both ask and bid price and click Submit Two-Way Price button in the middle to submit two-way price

Note: when submit your quote, you need to first select the exchange account on the top left corner. In addition, your Bid price cannot be higher than Ask price.

4）You will see your quote on the page once your quote is submitted successfully, as indicated below. You can also cancel or modify the quote.

Note: you can only submit 1 bid and 1 ask on a single RFQ. New quote will overwrite the original quote automatically.

<figure><img src="https://1545706758-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FBwKYWoBHfJ0ze3uhlaac%2Fuploads%2FZsf8xqvgLZrdcnXOdHmU%2Fimage.png?alt=media&#x26;token=a8636e45-3cb2-45d4-bc61-c266af3eb2f1" alt=""><figcaption></figcaption></figure>

#### 3.3.2 Review OrderBook Quote

1. In the Market - OrderBook page, you will see all the public quote from everyone. And you can filter the OrderBook by exchange, coin, and strategy.

<figure><img src="https://1545706758-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FBwKYWoBHfJ0ze3uhlaac%2Fuploads%2FjLGW8RH8q5acwOIj3WG9%2Fimage.png?alt=media&#x26;token=717bb087-b085-4570-8045-7f14f221bee6" alt=""><figcaption></figcaption></figure>

2. Click the quote to see more details of the OrderBook from a popup window

In the window, it willl show

* Basic information for this quote including exchange, instruments, and ratio
* Mark Price, SP Model Price, and Screen Price from the exchange

<figure><img src="https://1545706758-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FBwKYWoBHfJ0ze3uhlaac%2Fuploads%2FMwKWAzYgL5YZSt4zP6ML%2Fimage.png?alt=media&#x26;token=35a1b6d6-d41c-4db4-8e10-db5b1766e2b2" alt=""><figcaption></figcaption></figure>

3. Submit Quote

* Submit Bid: Enter price in green area to submit bid price
* Submit Ask: Enter price in green area to submit ask price
* Post Only: If you do not wish to be a taker when submitting the quote, you can check Post Only. When Post Only is checked, your order will be cancelled if you would be a taker when submmiting the quote

4. You can quote at most 2 bid and 2 ask on a single OrderBook. If more quotes need to be submitted, the system will ask you to cancel old orders.

<figure><img src="https://1545706758-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FBwKYWoBHfJ0ze3uhlaac%2Fuploads%2FeMz1JwMkkWgHCQrvkNSC%2Fimage.png?alt=media&#x26;token=90d328c6-f2ee-4d0d-a034-e869980af4a3" alt=""><figcaption></figcaption></figure>

#### 3.2 Cancel Quote

After submitted your quote, you have following ways to cancel your quote:

I. Click the “x” button within My Bid or My Ask column

<figure><img src="https://1545706758-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FBwKYWoBHfJ0ze3uhlaac%2Fuploads%2FI3S93fAzfOMCG1yF3705%2Fimage.png?alt=media&#x26;token=084a6eed-a620-4c5c-8f1a-4562233b31ae" alt=""><figcaption></figcaption></figure>

II. Click Kill Bitds/Kill Asks/Kill All on top of the list

<figure><img src="https://1545706758-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FBwKYWoBHfJ0ze3uhlaac%2Fuploads%2F1zefeKqoxIKG1ur5T64q%2Fimage.png?alt=media&#x26;token=9c9a0c51-8ad6-465b-8b19-d21dff8d17b7" alt=""><figcaption></figcaption></figure>

III. Go to History section and find the orders you would like to cancel

<figure><img src="https://1545706758-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FBwKYWoBHfJ0ze3uhlaac%2Fuploads%2FZtgRgXrbTDMMLY4zXyM6%2Fimage.png?alt=media&#x26;token=c38686d0-6ce2-486a-820d-857192f7c64e" alt=""><figcaption></figcaption></figure>

#### 3.3 Order Filled

If the quote submitted is filled, you will see a notification on the page similar to below

<figure><img src="https://1545706758-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FBwKYWoBHfJ0ze3uhlaac%2Fuploads%2FCe7ydVFauq0hmuKFog34%2Fimage.png?alt=media&#x26;token=8fb34573-7053-4ff7-a83b-6a6444cc25b8" alt=""><figcaption></figcaption></figure>

### 4. SignalPlus Tools

SignalPlus provides following tools within Paradigm for your convenience

| Tool            | Function                                                                                                                                                                          |
| --------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Quote by Leg    | Pricing and quoting tool - based on the current bid and ask, in addition to some adjustments to each leg, to get total Strategy Bid and Strategy Ask                              |
| Quote by Spread | Pricing and quoting tool - consider the entire strategy as a whole with a baseline, and enter the spread for bid and ask respectively, to get total Strategy Bid and Strategy Ask |
| Break Even      | Break Even analysis for the proposed trades and impact to existing positions                                                                                                      |
| Risk Scenario   | Simulation tool - to see the PnL and Risk under different scenario                                                                                                                |

#### 4.1 Quote by Leg

1. Open the detailed popup window and click to expand SignalPlus Tools

<figure><img src="https://1545706758-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FBwKYWoBHfJ0ze3uhlaac%2Fuploads%2FrQfhlohn9RwIdJVIBaEH%2Fimage.png?alt=media&#x26;token=90c16501-8a42-4c53-b171-60616c34d7cb" alt=""><figcaption></figcaption></figure>

2. Select Quote by Leg to show information for each leg
3. You can adjust adjust the quote price for each leg

   1. The direction of quoting - Bid or Ask
   2. Price method: IV, BTC or USD
   3. Price reference baseline: Mark, SP Model, Mid, Bid0, or Ask0
   4. Adjustment to the baseline, such as +xx% or -xx%
   5. The system will show the final calculation of each based on the entries you made
   6. The final Strategy Bid or Strategy Ask will be calcuated by the result of each leg

<figure><img src="https://1545706758-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FBwKYWoBHfJ0ze3uhlaac%2Fuploads%2FK8DFZFAiQIdZn7owSYJa%2Fimage.png?alt=media&#x26;token=83b8335b-c942-4bdf-a0ac-e6d6a3ec4e57" alt=""><figcaption></figcaption></figure>

4. With the final Strategy Bid or Strategy Ask, you can apply this quote to the submission box above.

#### 4.2 Quote by Spread

1. Open the detailed popup window and click to expand SignalPlus Tools

<figure><img src="https://1545706758-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FBwKYWoBHfJ0ze3uhlaac%2Fuploads%2F4deX5tF8H0RaIaEISM1T%2Fimage.png?alt=media&#x26;token=05819b5e-8253-4117-9827-36b54d2f3c28" alt=""><figcaption></figcaption></figure>

2. Select Quote by Spread to show information for each leg
3. Select Mark, SP Model, Mid, Bid0, Ask0, or Customize as baseline
4. Enter the desired spread
5. If Offset Shade is checked, the spread between Strategy Bid and Strategy Ask will be allocated automatically.
6. With the final Strategy Bid or Strategy Ask, you can apply this quote to the submission box above.

### 5. History

In the History section, you can check

* RFQ History: RFQ requested and received
* Order History: all the orders include active, filled and cancelled order
* Trade History: all your related trades

<figure><img src="https://1545706758-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FBwKYWoBHfJ0ze3uhlaac%2Fuploads%2FeiaIgZMQ76EaNGimQHen%2Fimage.png?alt=media&#x26;token=4c07adce-e30e-4b7a-8007-5b1634619193" alt=""><figcaption></figcaption></figure>

### 6. Trade Tape

In the Trade Tape section, you can see the latest filled orders within Paradigm.

<figure><img src="https://1545706758-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FBwKYWoBHfJ0ze3uhlaac%2Fuploads%2FTnVuXK2iGWXOSNqgEz9f%2Fimage.png?alt=media&#x26;token=60a638cc-00cb-42a2-ae4a-5c94e47d5613" alt=""><figcaption></figcaption></figure>

### 7. RFQ Minimal Qty

| Exchange | Strategy             | Minimal Total Qty                  |
| -------- | -------------------- | ---------------------------------- |
| Deribit  | BTC Option Strategy  | Sum of All Option Legs ≥ 25 BTC    |
|          | ETH Option Strategy  | Sum of All Option Legs ≥ 250 ETH   |
|          | BTC Futures Strategy | Sum of All Futures Legs ≥ 200K USD |
|          | ETH Futures Strategy | Sum of All Futures Legs ≥ 100K USD |
| Bybit    | BTC Option Strategy  | Sum of All Option Legs ≥ 0.01 BTC  |
|          | ETH Option Strategy  | Sum of All Option Legs ≥ 0.1 ETH   |