In 2015, on a Hong Kong hiking trail, the concept of a perpetual swap was conceived. Ben Delo, BitMEX co-founder and mathematician, was brainstorming with Bavik, a derivatives trader, to resolve an issue that had been plaguing him for months.
BitMEX had experimented with various futures contracts, but customers kept complaining about unexpected position closures. They desired a product that mimicked spot trading but offered the leverage of a derivatives exchange. Delo posed a question: what if a future never expired?
Bavik's response was that it would theoretically be worth infinity, but he proposed a solution: charge traders the bitcoin overnight rate. This conversation laid the groundwork for one of the most influential financial products of the 21st century. Delo built the perpetual swap, and in doing so, invented a groundbreaking financial instrument. The story of BitMEX and the perpetual swap is one of innovation, perseverance, and the relentless pursuit of solving the problems that mattered most to its customers.