The most important use case of Synthetic PoW Mining Contract is hedging the mining risk. For the minerss, the further contract is better. Besides, rolling contracts leaves a hugh risk exposure for the miners. In the other hand, in the early days of the contract, too many contracts harm the liquidity.
I suppose the expiration settings of contact below:
T + 14
T + 28
T + 42
T + 56
T + 70
T + 84
Some rules to follow:
Set the expiration time at the middle of the BTC difficulty window (about 14 days), which means set the expiration time 7 days after an expected difficulty adjustment time. Due to the inability to accurately predict the difficulty adjustment time, 7-days is a very safe transition period，which makes the contract expires after a difficulty adjustment.
The disadvantage of this is that the index will not change 7 days before the contract expires and the contract value is no longer changed neither.
The most important use case of Synthetic PoW Mining Contract is hedging the mining risk. For the minerss, the further contract is better. Besides, rolling contracts leaves a hugh risk exposure for the miners. In the other hand, in the early days of the contract, too many contracts harm the liquidity.
I suppose the expiration settings of contact below:
T + 14 T + 28 T + 42 T + 56 T + 70 T + 84
Some rules to follow:
Set the expiration time at the middle of the BTC difficulty window (about 14 days), which means set the expiration time 7 days after an expected difficulty adjustment time. Due to the inability to accurately predict the difficulty adjustment time, 7-days is a very safe transition period，which makes the contract expires after a difficulty adjustment. The disadvantage of this is that the index will not change 7 days before the contract expires and the contract value is no longer changed neither.
Alternative: less contracts
T + 28 T + 56 T + 84