The Modulus Futures & Margin Exchange Solution is a full-fledged futures and margin exchange, featuring advanced margin calculation capabilities, as well as the ability to create and manage custom futures contracts with custom expiry dates, perpetual futures contracts, and custom leverage multipliers. It also allows for the automatic management of initial and maintenance contract margins, deleveraging, exchange & contract risk, and much more.
The solution is designed for rapid deployment, low cost operation, high scalability, high performance, and extensive white label customizations. The solution allows futures & margin exchange operators to quickly develop profitable revenue streams and offer trading for an unlimited number of leveraged products.
Who uses the Modulus Futures Exchange? Many of the top derivatives exchanges, including (previously), FTX.
Whenever a trader’s position gets liquidated, the position becomes controlled by our advanced, high-performance Deleveraging Engine. If the liquidation cannot get filled after the mark price reaches the margin-call price, the system will automatically deleverage the counterparty’s positions by profit and leverage priority. The price the positions are closed out at is the margin-call price of the order that was liquidated initially.
The Modulus Futures & Margin Exchange Solution provides an Insurance Fund system, which is designed to prevent the automatic deleveraging of positions. The fund can be used to attack unfilled liquidation orders before the orders are processed by the auto-deleveraging system. Funds are accrued from liquidations that could have been executed at a better price than the bankruptcy price for a position.
Cross Margin or Spread Margin is a type of margin that uses the total amount of funds available to prevent liquidations. Profit and loss from any other position can be used to add margin to a losing position. This margin type is useful for traders who have hedged positions.
The Modulus exchange solution offers a customizable web front-end and a configurable backend built with Go and .NET (full source code is available) with a fully documented developer API and developer support so you can build a custom frontend or backend.
Your development team will be able to modify the front-end, our matching engine, risk management & trade surveillance engines and more to unlock the full potential of our world class digital asset exchange solution. Compared to unsecure, unsupported open-source exchange script source code, Modulus wins hands-down. Learn more with ChatGPT!
When futures and margin exchanges fail to operate exactly as intended, losses add up extremely fast due to the leverage involved. Modulus has been a leader in the financial technology industry for decades, and our products consistently rank as the most secure and best engineered in their category. There's simply no comparison. Contact us for a demo today, and see the difference for yourself.
It's more than just a slick interface. One of the most difficult parts of designing a futures and margin exchange is ensuring that there's always enough collateral for trades --- otherwise, the exchange will lose money. The order margin calculation is extremely important, and it must recalculate in real-time, as prices and volatility are always in flux, requiring that liquidation must also be performed in real-time. If a futures and margin exchange fails to properly calculate margin and manage liquidation in real-time, exchanges can lose more money than they have on hand due to the leverage involved.
Modulus, the most trusted name in the industry, has developed this platform with ultimate precision, ensuring that margin and liquidation calculations are never inaccurate --- not even by a fraction --- with all calculations performed in real-time. To accomplish this, Modulus has customized their proprietary matching engine, which is world-renowned for being the fastest in existence, and built new margin calculation and deleveraging engines utilizing Golang.
Developed from the ground up, using the latest and most advanced technologies available, our futures and margin exchange is designed for rapid deployment, low cost operation, extreme scalability, high performance, and extensive white label customizations. The solution allows exchange operators, brokers, fund managers, retail traders, and professional traders to quickly develop profitable revenue streams, trading multiple leveraged products from a single platform.
Most exchange solutions are slow and lack necessary security features. They also limit trading capacity and, with it, profitability. They come with costly revenue sharing schemes and long-term contracts designed to lock clients in for several years. They take what seems like forever to launch, and they're nearly impossible to successfully scale.
Modulus provides the best exchange solution on the market. It's no wonder that the world's fastest, most secure, and most successful exchanges are powered by our technologies.
A hacked exchange creates far more damage than solely those of the monetary variety. A solid reputation is hard to earn, but it is even harder to repair. That's why Modulus is laser-focused on security, creating a best-in-class apparatus. We've deployed prominent cybersecurity experts to lead a security analysis of all hacks and phishing campaigns to date, and we've developed our platform with best security practices in mind. Beyond our partnership with CloudFlare, we've contracted with ethical hackers, and our engineers implemented a multi-layer security architecture, making the exchange virtually impenetrable. And, thanks to our exceptional design, our exchange server software scales to millions of transactions per second. Click the banner below to schedule a demo to learn more about how we've developed the fastest exchange solution on the market.
Our exchange solution is versatile. You can list unlimited tradable assets, including commodities, digital assets, and currencies.
The user interface, and even the matching engine, can be customized, and custom market making bots can be developed. In fact, every part of our solution can be customized to any extent.
With Modulus, there are no long-term contracts, recurring license fees, or revenue sharing schemes.
The Modulus Futures & Margin Exchange Solution is ready to deploy, typically, within a few business days. As a turnkey solution, Modulus technicians are proud to offer industry-leading setup and maintenance, which includes customization to meet your specific needs. Your exchange can be hosted on-premises or in the cloud. Immediately after setup is complete, beta testing can begin while our technicians offer your team extensive training. This allows you to get to market faster and start driving traffic to your exchange. If marketing is a challenge, Modulus has experts ready to assist you. We truly are a full-service firm.
With our solution, your commodity exchange can trade coffee, cocoa, sugar, precious metals, currencies, digital assets, and any other products that you are licensed to trade.
Both the user interface and the matching engine can be customized to fit your specific needs. All of our technologies are built to adapt to whatever alterations are required by your situation.
Beyond the standard order types provided in our spot exchange solution, our futures and margin exchange solution offers a new Close Only order, plus three new stop orders, including the Index Price Stop, Mock Price Stop, and Last Traded Price Stop.
With our solution, a professional trading platform front-end and a developer API comes standard. This allows for the development of trading bots, custom user interfaces, and admin applications.
Two-Factor Authentication (2FA) is built in. CloudFlare™ is enabled by default. Advanced KYC/AML support is provided, with multiple KYC service providers already integrated, including Coinfirm™, Comply Advantage™, IdentityMind™, IDology™, Jumio™, ShuftiPro™, Sum & Substance™, SynapseFI™, Thomson Reuters™, Truloo™, manual KYC, and other options. Integration with CipherTrace™ and Chainanalysis™ for extended AML functionality is also provided.
Advanced geo-fencing allows for the identification of IP address geography, as well as the geography of ISPs and organizational owners. Tor browsers and VPNs can be detected and rejected. And, the platform was built to allow for compliance to GDPR, support included.
Tokenization functionality, which enables the exchange to digitize assets for fractional share trading, is optional, and Securitize integration is enabled. FreshDesk customer support integration can also be added.
AI-driven, anti-market manipulation, anti-money laundering, anti-tumbling/anti-mixing features are also built-in. Modulus developed its platform to comply with current regulations, as well as those which are anticipated in the future. Admin logging tracks all exchange employee actions, including reading, writing, and deleting. Additionally, exchanges may set custom admin permissions in order to create admin accounts which can process withdrawal requests or edit/view specific account data.
Beyond that, Modulus offers additional functionality which cannot be found in any other platform, including scripting languages for trading system development and back testing, expert advisors, auto-trading, market scanning, social media trading (copy trading), sentiment analysis, pattern recognition, A.I. trading systems and more.
If your exchange is in need of specific features or enhancements, our team is ready to help. Modulus development rates are competitive, and because our technicians are well-versed with our source code, we can typically develop new features at a cost savings compared to in-house development.
Your platform comes with a full year of complimentary product updates and technical support, so your exchange will always be up to date, though you will have complete control over new upgrades and offered features. After the one-year period has passed, you may continue to use the software freely, and the maintenance subscription may be renewed, at your discretion, for a reasonable monthly rate.
Golang is used for CPU-intensive processes including the matching-engine, and margin/deleveraging engine. Angular 8 is used for the web front-end. C# .Net Core 6.0 is used for non-CPU intensive systems including the admin panel and core API. Postgres Timescale DB is used. Redis is used for Cache Management. NATS is used for message streaming & inter-service communication. The system is based on a microservice architecture with a total of 8 micro-services. Kubernetes/Docker Swarm for orchestration.
We are fintech, and we have been for twenty years. Our sole focus has always been high-performance technology for financial markets. We design and build the world's most reliable solutions. While our offerings are not cheap, no software worth using is. Our solutions are capable of withstanding heavy load and strict government regulation, so you'll always have peace of mind.
The Modulus Suite of Solutions was developed to change the way our industry operated, providing our clients with a competitive advantage that others simply can't match. Many exchanges can't handle more than one or two million transactions per second. Some can't handle 100,000 --- or even 15,000 --- transactions per second. Our exchange, leveraging our unparalleled experience and proprietary source code frameworks, outperforms them all. Our source code is written in the Go programming language, designed for computationally intense server applications by Google in 2009 as an alternative to standard programming languages like C++.
While most vendors require a long-term contract, and many even impose a revenue sharing scheme, Modulus charges a simple, one-time license fee. We will never create software limitations or problems in order to extract additional revenue. Other vendors offer liquidity "solutions" designed to drain your profits. And, nearly all others charge extra fees for optional features or for adding tokens. We never have, and we never will.
Included is a pre-built, customizable exchange web app with a modern appearance which blends well with our spot exchange solution. Our UI design solves the shortcomings and UX design flaws found in existing popular exchange apps, and our UI supports multiple languages via a globalization file, including right-to-left text. Features include MFA, GDPR compliance, professional charting, technical analysis tools, and much more.
Set deposit and withdrawal limits for individual users --- or for all of them.
Set up trading halts and curbs based on specific criteria to prevent flash crashes.
Set up initial margin and maintenance margins.
Run Proof of Solvency audit reports to prove reserves.
Maintain an affiliate system to reward traders for referrals with seven different marketing strategies built-in, including a referral deposit system, affiliate marketing, and many variations of each.
List new products and futures contracts.
Follow live stats within graphs and gauges for the number of new user signups, number of trades per day and per hour, average trade size, detailed order book information, and exchange security status.
Review other important information, including Profit & Loss, open positions, account balances, and much more.
Most new exchanges fail to gain traction due to inadequate trading volume. A new exchange requires customers, but those customers need sufficient trading liquidity to place trades. Without either element, the exchange will never succeed.
Modulus eliminates that issue by allowing you to connect your exchange to any supported liquidity provider. Plus, you can adjust rebates and cash incentives to attract market makers to your exchange. Unlike other vendors, Modulus does not require revenue sharing to add liquidity to your exchange.
Just remember that local laws and regulations may dictate limitations to market making, so be sure to consult with your legal counsel before launching or enabling features.
Our exchange isn't just the fastest and most powerful exchange on the market, it's also among the most secure. We're more than bandwagon enthusiasts. We're fintech experts, and we've taken every possible risk and vulnerability into account, learning from sophisticated attack vectors that we've witnessed victimize other exchanges.
Your exchange will be protected with multiple security layers, including two-factor authentication, anti-phishing features, geofencing that also detects VPNs and Tor exit nodes, database encryption, DDoS mitigation, network and trade anomaly detection, enterprise-grade offline multisignature vaults (for digital asset exchanges), and optional hardware security devices --- plus independent penetration testing and source code analysis.
Modulus supports KYC & AML providers, including as Jumio™, Trulioo™, IdentityMind™, Shufti Pro™, SynapseFi™, Cognito™, 4Stop™ and others. Utilize Know Your Customer (KYC) verification to process identity checks (name, address, and ID documents), while using Anti-Money Laundering (AML) technologies to scrutinize real-time risk scoring through machine learning.
Our exchange solution has been designed to comply with current and future regulations. Using machine learning, the Modulus exchange solution analyzes pre-trade and post-trade data to identify suspicious activity such as large trades, pass-through trades, wash trades, spoofing, layering, stuffing, hammering, momentum ignition, and money laundering, allowing administrators to freeze accounts as needed and generate Suspicious Activity Reports for regulators.
Our exchange solution has been designed to help comply with current and future regulations. Using machine learning, the Modulus exchange solution analyzes trade data to identify and report suspicious trading activity.
Please note that derivatives trading on margin carries substantial risk for traders and exchange operators. Exchange operators must have knowledge of derivatives and derivatives market making to use the Modulus Futures Exchange Solution. Market making bots are not provided with the solution. Third party derivatives trading consultants (Modulus Certified Consultants) may be available to assist new derivatives exchanges with the complexities of market making and operations. Please consult with a Modulus Sales Representative for details.
Please note that the Modulus Futures & Margin Exchange Solution may not be used for converting digital assets into real currency or vice versa without proper licensing and regulatory oversight. The solution may also not be used for sports betting or gambling if not permitted in the jurisdictions where you plan to conduct business. Modulus provides geo-fencing functionality to prevent unauthorized users from accessing your exchange, if required. Consult with a lawyer before launching your exchange. Futures exchanges are regulated by the CFTC in the United States. Digital asset exchanges must follow all rules with proper legal compliance, AML, and KYC in place for not only the jurisdiction in which the exchange is domiciled, but also for each jurisdiction in which it conducts business. Modulus provides software that sits between financial products and institutions. As such, we are not a licensed financial institution. If your organization plans to accept deposits and issue credits on any digital asset network, it is likely you will need to be a licensed money services provider (MSP) or mobile money operator (MMO). All Modulus clients should heed the regulatory environment of their organization. Modulus does not provide legal advice or guidance. Unless your exchange is fully licensed and approved by applicable regulatory agencies, such as the CFTC (if applicable), it is prohibited to access or use our software if you are located, incorporated or otherwise established in, or a citizen or resident of, any “Restricted Jurisdiction”, including (i) the United States of America, the province of Québec in Canada, the Hong Kong Special Administrative Region of the People’s Republic of China, the Republic of Seychelles, Bermuda, Cuba, Crimea and Sevastopol, Iran, Syria, North Korea or Sudan; (ii) any state, country or other jurisdiction that is embargoed by the United States of America; (iii) a jurisdiction where it would be illegal according to Applicable Law for you (by reason of your nationality, domicile, citizenship, residence or otherwise) to access or use the software; or (iv) where the publication or availability of the Services or the exchange is prohibited or contrary to local law or regulation, or could subject any member of Modulus to any local registration or licensing requirements (together, the “Restricted Jurisdictions”). Modulus may, in its sole discretion, implement controls to restrict access to the Services or the software in any of the Restricted Jurisdictions. If Modulus determines that you are accessing the Services or the exchange from any Restricted Jurisdiction, or have given false representations as to your location of incorporation, establishment, citizenship or place of residence, Modulus reserves the right to deactivate the software immediately.
"Applicable Law" means all civil and common laws, statutes, subordinate legislation, treaties, regulations, directives, decisions, by-laws, ordinances, circulars, codes, orders, notices, demands, decrees, injunctions, resolutions, rules and judgments of any government, quasi-government, statutory, administrative or regulatory body, court, agency or association by which any member of Modulus or you are bound in any jurisdiction applicable to the receipt or performance of the Services.
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