Trackers User Guide

Introduction 

Trackers are derivative contracts designed to closely follow the price movements of crypto assets, providing a similar experience to buying those assets directly in the spot market. By purchasing and holding a Tracker, you can benefit from any upward price movements of the underlying coin, and you have the flexibility to sell your Tracker at any time to realize your gains. For example, buying a BTC Tracker (product symbol: BTC-T) allows you to capture the upside of Bitcoin’s price movements.

Once you purchase a Tracker, it will appear in your Delta Exchange trading account (available on both mobile and web platforms), and you can sell it whenever you choose. Unlike Crypto Perpetuals or Options, Tracker assets cannot be sold short-you can only sell what you own. Additionally, Trackers are not leveraged products, so sharp market declines will not result in the liquidation of your position.

Trackers vs. Actual Crypto Assets

You can get exposure to a crypto asset by buying it directly or through a Tracker. There are however some key differences between the two which are listed below:
A. Trackers offer tighter spreads and deeper liquidity compared to spot markets for crypto assets. So you incur lower slippages

B. The trading fees for Trackers is significantly lower than the trading fees incurred when trading actual crypto assets

C. There’s a daily holding cost associated with Trackers. This cost is explained with examples below

D. You can withdraw a crypto asset to your own wallet or move it to different exchanges. In contrast, a Tracker asset can only be held and traded on Delta Exchange. It cannot be withdrawn

E. Since Trackers are derivative products, they do not attract VDA specific taxes that are applicable on trading on actual crypto

Trading Trackers

Purchasing Tracker

The smallest unit of BTC Tracker (product symbol: BTC-T) is 1 Lot which is equivalent to 0.00001 BTC. The minimum amount of Tracker that can be brought in one order is 100 lot (i.e. 0.001 BTC). Users can purchase any value of Tracker until all the balance that is available in their wallet. 

Selling Tracker

There are no restrictions on how much Tracker can be sold in one order. It is only limited by the amount of Tracker Assets held by the user at that time which is available for selling. 

Trading Fees

Trading Fees are charged when Tracker Asset is bought and again when they are sold. They are charged as a percentage of Tracker Asset value being bought or sold. Both maker and taker are charged 0.05%. 

Holding Cost

A daily ‘Holding Cost’ applies to Tracker Assets in exchange for the benefits they offer. This cost is calculated by multiplying the current Holding Rate by the size of your Tracker position (in value terms) that was being held at a particular time i.e. 5:30 PM IST each day and deducted from your available balance at the same time.

The Holding Rate updates once every 24 hours and remains unchanged during that period. Current Holding Rate is always visible on the Delta Exchange platform-both before you buy and while you hold Trackers. Note: No Holding Cost is charged at 5:30PM IST on the first day of holding the Tracker.

In summary, there are three key terms related to holding costs that every Tracker trader should understand. These values are always available on the Delta Exchange platform.

1. Holding Cost Paid 

This is the cumulative holding cost paid until the current time on the specific Tracker Asset holding. Each day’s holding cost is added to the holding cost already paid until the previous day.   

2. Holding Rate 

The rate of holding cost (in percentage) which will be charged the next day at a specific time i.e. 5:30 PM IST on the value of Tracker Asset held at that particular time. Holding rate updates once every 24 hours and remains unchanged during that period.

3. Next Holding Cost In

Time after which the next holding cost will be charged on the Tracker Asset. Holding cost will be charged once every 24 hours at a specific time i.e. 5:30 PM IST except the first day.

Holding Cost and P&L Computation on Trackers

When Trackers are squared-off before 5:30 PM IST the next day

Example: Let’s suppose:
I.  The specific time Holding Cost is charged each day is 5:30 PM IST 
II. 100 Lots of BTC-T (which is also the minimum qty that can be purchased) is bought at 1 PM IST.
III. BTC-T is trading at $100,000 with the price remaining constant throughout.

1. Wallet Balance used  = 100 Lots x (1/100,000) x $100,000 = $100
   
   

2. The Trading fees charged at the entry would be 0.05% of the Tracker asset bought
   Trading Fees Paid (at entry)= 0.05% x 100 Lot x (1/100,000) x $100,000 = $0.05
   
   

3. At T+1 (next day), 5:25 PM 100 Lots is purchased. Total Trackers = 200 Lots
   Wallet Balance used = 100 Lots x (1/100,000) x $100,000 = $100
   Trading Fees Paid (at entry) = 0.05% x 100 Lot x (1/100,000) x $100,000 = $0.05
   Total Wallet Balance consumed = $100 + $100 = $200 

At 5:30 PM IST on the first day (T day) no holding cost will be charged as Holding Cost is not charged on the first day. If the entire holding of Trackers is sold just before 5:30 PM of the next day (T+1) holding cost will still not be charged. As no Trackers were held at the particular time of 5:30 PM IST that day when the Holding Cost is being computed. 

4. 200 Lots Tracker assets sold at T+1 at 5:29 PM IST (or any time time before 5:30 PM IST)
   Wallet Balance released = 200 Lots x (1/100,000) x $100,000 = $200
   Trading Fees Paid (at exit) = 0.05% x 200 Lot x (1/100,000) x $110,000 = $0.11
   Holding Fees Charged = $0
   Wallet Balance Released = $200 Lots x (1/100,000) x $110,000 - $0.05 - $0.05 -$0.11 = 219.79
   Net Realized Profit = 219.79 - 200 = 19.79
   Returns = 9.89%  

When Trackers are squared-off after 5:30 PM IST the next day

If you hold a Tracker position at 5:30 PM IST the following day, a holding cost will be charged. This daily charge continues to be levied for each day you hold the Tracker, until you sell your entire position. Buying more or partially selling Trackers does not reset the holding cost period - the first-day exemption applies only when you initially purchase the Tracker.

If a fresh position is again taken no holding charges will be charged on the first day.

Instead of selling 200 lots lets assume that it was continued to be held

5. If the position was held past 5:30 PM IST on T+1 day
   Holding Charges = Holding Rate x Position Size of Tracker assets
   Holding Fees Charged = 0.03% x 200 Lot x (1/100,000) x $100,000 = $0.06  

The holding cost is deducted at 5:30 PM IST each day from your available balance in your Delta Exchange wallet. If your wallet doesn’t have enough funds, part of your Tracker Asset will be automatically sold at that very time to cover the cost. If you add more funds later, future holding costs will again be deducted from your wallet balance.
 

6. If at 5:30pm Holding Charges $0.06 was not available in the wallet then an equivalent amount of Tracker Asset would be sold. 
   In this example:
   Qty of Tracker Asset to be sold = $0.06 / $ 100,000 x (1/100,000) = 0.06 Lots
   Updated Holdings Qty = 200 Lots - 0.06 Lots = 199.94 Lots
   
   

When Trackers are squared-off after being held for multiple days

7. If the Tracker Asset was held past 5:30 PM IST on T+2 day
   
   Holding Fees Charged = $0.06
   Updated Holdings Qty = 199.94 - 0.06 = 199.88
   
   If between 5:30PM & 5:35 PM IST BTC-T has moved up by 10% and then position is sold
   Trading Fees Paid = 0.05% x 199.88 Lots x(1/100,000) x $110,000 = $0.1
   Wallet Balance Released = 199.88 Lots x (1/100,000) x $110,000 = $219.87 - $0.1 = $219.77
   
   Net Realized Profit = $219.77 - $200 = $19.77
   Returns = 9.8%
   
   

8. If Tracker Asset was held for T+29 days (assuming BTC-T was at $100,000)
   
   Trading Fees Paid (at entry)= 0.05% x 200 Lots x (1/100,000) x $100,000= $0.1
   Total Holding Fees Charged= 29 x $0.06 = $1.73
   Qty of Tracker Asset to be sold = $1.73/ $ 100,00 x (1/100,00) = 1.73 lots
   Updated Holdings Qty = 200 - 1.73 = 198.27
   
   If between 5:30PM & 5:35 PM IST BTC-T has moved up by 10% then the position is sold
   Trading Fees Paid (at exit) = 0.05% x 198.27 Lots x(1/100,000) x $110,000 = $0.11
   Wallet Balance Release = 198.27 Lots x (1/100,000) x $110,000 - $0.11 - $0.1 =$218.98 = $218.88
   Net Realized Profit = $218.88 - $200 = $18.88
   Returns = 9.4%
   
   

9. If Tracker Asset was held for T+89 days (assuming BTC-T was at $100,000)
   
   Trading Fees Paid (at entry)= 0.05% x 200 Lots x (1/100,000) x $100,000= $0.1
   Total Holding Fees Charged= 89 x $0.06 = $5.27
   Qty of Tracker Asset to be sold = $1.73/ $ 100,00 x (1/100,00) = 5.27 lots
   Updated Holdings Qty = 200 - 5.27 = 194.73
   
   If between 5:30PM & 5:35 PM IST BTC-T has moved up by 10% then the position is sold
   Trading Fees Paid (at exit) = 0.05% x 194.73 Lots x(1/100,000) x $110,000 = $0.11
   Wallet Balance Release = 194.73 Lots x (1/100,000) x $110,000 - $0.11 - $0.1 =$213.99
   Net Realized Profit = $218.88 - $200 = $13.99
   Returns = 6.99%
   
   

Tracker Asset vs Normal Spot Trading 

In normal spot trading trading fees charged by well known trading platforms is around 0.5%. However, the holding cost is not charged. 

Trading Fees Paid (at entry)= 0.5% x 200 Lots x (1/100,000) x $100,000 = $1

Trading Fees Paid (at exit) = 0.5% x 200 Lots x (1/100,000) x $110,000 = $1.1

Net Realized Profit = 200 x ($100,000 - $110,000) x (1/100,000) - $1 -$1.1 = 17.9

Returns = 8.95%

The returns made in trading spot becomes independent of how long the spot was held unlike while trading Trackers.

Due to the significantly higher trading fees on trading spot, trading Trackers becomes lucrative when held for shorter periods of time as highlighted in the table below. 

Taxation on Realized Gains/Loss

Since Trackers are derivative products, they are not subject to the specific taxes that apply to Virtual Digital Assets (VDAs). Any gains or losses from Trackers are taxed in the same way as Perpetual Futures and Options traded on Delta Exchange.

Introduction 

Trackers are derivative contracts designed to closely follow the price movements of crypto assets, providing a similar experience to buying those assets directly in the spot market. By purchasing and holding a Tracker, you can benefit from any upward price movements of the underlying coin, and you have the flexibility to sell your Tracker at any time to realize your gains. For example, buying a BTC Tracker (product symbol: BTC-T) allows you to capture the upside of Bitcoin’s price movements.

Once you purchase a Tracker, it will appear in your Delta Exchange trading account (available on both mobile and web platforms), and you can sell it whenever you choose. Unlike Crypto Perpetuals or Options, Tracker assets cannot be sold short-you can only sell what you own. Additionally, Trackers are not leveraged products, so sharp market declines will not result in the liquidation of your position.

Trackers vs. Actual Crypto Assets

You can get exposure to a crypto asset by buying it directly or through a Tracker. There are however some key differences between the two which are listed below:
A. Trackers offer tighter spreads and deeper liquidity compared to spot markets for crypto assets. So you incur lower slippages

B. The trading fees for Trackers is significantly lower than the trading fees incurred when trading actual crypto assets

C. There’s a daily holding cost associated with Trackers. This cost is explained with examples below

D. You can withdraw a crypto asset to your own wallet or move it to different exchanges. In contrast, a Tracker asset can only be held and traded on Delta Exchange. It cannot be withdrawn

E. Since Trackers are derivative products, they do not attract VDA specific taxes that are applicable on trading on actual crypto

Trading Trackers

Purchasing Tracker

The smallest unit of BTC Tracker (product symbol: BTC-T) is 1 Lot which is equivalent to 0.00001 BTC. The minimum amount of Tracker that can be brought in one order is 100 lot (i.e. 0.001 BTC). Users can purchase any value of Tracker until all the balance that is available in their wallet. 

Selling Tracker

There are no restrictions on how much Tracker can be sold in one order. It is only limited by the amount of Tracker Assets held by the user at that time which is available for selling. 

Trading Fees

Trading Fees are charged when Tracker Asset is bought and again when they are sold. They are charged as a percentage of Tracker Asset value being bought or sold. Both maker and taker are charged 0.05%. 

Holding Cost

A daily ‘Holding Cost’ applies to Tracker Assets in exchange for the benefits they offer. This cost is calculated by multiplying the current Holding Rate by the size of your Tracker position (in value terms) that was being held at a particular time i.e. 5:30 PM IST each day and deducted from your available balance at the same time.

The Holding Rate updates once every 24 hours and remains unchanged during that period. Current Holding Rate is always visible on the Delta Exchange platform-both before you buy and while you hold Trackers. Note: No Holding Cost is charged at 5:30PM IST on the first day of holding the Tracker.

In summary, there are three key terms related to holding costs that every Tracker trader should understand. These values are always available on the Delta Exchange platform.

1. Holding Cost Paid 

This is the cumulative holding cost paid until the current time on the specific Tracker Asset holding. Each day’s holding cost is added to the holding cost already paid until the previous day.   

2. Holding Rate 

The rate of holding cost (in percentage) which will be charged the next day at a specific time i.e. 5:30 PM IST on the value of Tracker Asset held at that particular time. Holding rate updates once every 24 hours and remains unchanged during that period.

3. Next Holding Cost In

Time after which the next holding cost will be charged on the Tracker Asset. Holding cost will be charged once every 24 hours at a specific time i.e. 5:30 PM IST except the first day.

Holding Cost and P&L Computation on Trackers

When Trackers are squared-off before 5:30 PM IST the next day

Example: Let’s suppose: 
I.  The specific time Holding Cost is charged each day is 5:30 PM IST 
II. 100 Lots of BTC-T (which is also the minimum qty that can be purchased) is bought at 1 PM IST.
III. BTC-T is trading at $100,000 with the price remaining constant throughout.     

1. Wallet Balance used  = 100 Lots x (1/100,000) x $100,000 = $100
   
   

2. The Trading fees charged at the entry would be 0.05% of the Tracker asset bought
   Trading Fees Paid (at entry)= 0.05% x 100 Lot x (1/100,000) x $100,000 = $0.05 
   
   

3. At T+1 (next day), 5:25 PM 100 Lots is purchased. Total Trackers = 200 Lots
   Wallet Balance used = 100 Lots x (1/100,000) x $100,000 = $100
   Trading Fees Paid (at entry) = 0.05% x 100 Lot x (1/100,000) x $100,000 = $0.05
   Total Wallet Balance consumed = $100 + $100 = $200 

At 5:30 PM IST on the first day (T day) no holding cost will be charged as Holding Cost is not charged on the first day. If the entire holding of Trackers is sold just before 5:30 PM of the next day (T+1) holding cost will still not be charged. As no Trackers were held at the particular time of 5:30 PM IST that day when the Holding Cost is being computed. 

4. 200 Lots Tracker assets sold at T+1 at 5:29 PM IST (or any time time before 5:30 PM IST)
   Wallet Balance released = 200 Lots x (1/100,000) x $100,000 = $200
   Trading Fees Paid (at exit) = 0.05% x 200 Lot x (1/100,000) x $110,000 = $0.11
   Holding Fees Charged = $0
   Wallet Balance Released = $200 Lots x (1/100,000) x $110,000 - $0.05 - $0.05 -$0.11 = 219.79
   Net Realized Profit = 219.79 - 200 = 19.79
   Returns = 9.89%  

When Trackers are squared-off after 5:30 PM IST the next day

If you hold a Tracker position at 5:30 PM IST the following day, a holding cost will be charged. This daily charge continues to be levied for each day you hold the Tracker, until you sell your entire position. Buying more or partially selling Trackers does not reset the holding cost period - the first-day exemption applies only when you initially purchase the Tracker.

If a fresh position is again taken no holding charges will be charged on the first day.

Instead of selling 200 lots lets assume that it was continued to be held

5. If the position was held past 5:30 PM IST on T+1 day
   Holding Charges = Holding Rate x Position Size of Tracker assets 
   Holding Fees Charged = 0.03% x 200 Lot x (1/100,000) x $100,000 = $0.06  

The holding cost is deducted at 5:30 PM IST each day from your available balance in your Delta Exchange wallet. If your wallet doesn’t have enough funds, part of your Tracker Asset will be automatically sold at that very time to cover the cost. If you add more funds later, future holding costs will again be deducted from your wallet balance.
 

6. If at 5:30pm Holding Charges $0.06 was not available in the wallet then an equivalent amount of Tracker Asset would be sold. 
   In this example: 
   Qty of Tracker Asset to be sold = $0.06 / $ 100,000 x (1/100,000) = 0.06 Lots
   Updated Holdings Qty = 200 Lots - 0.06 Lots = 199.94 Lots
   
   

When Trackers are squared-off after being held for multiple days

7. If the Tracker Asset was held past 5:30 PM IST on T+2 day
   
   Holding Fees Charged = $0.06
   Updated Holdings Qty = 199.94 - 0.06 = 199.88
   
   If between 5:30PM & 5:35 PM IST BTC-T has moved up by 10% and then position is sold
   Trading Fees Paid =  0.05% x 199.88 Lots x(1/100,000) x $110,000 = $0.1
   Wallet Balance Released = 199.88 Lots x (1/100,000) x $110,000 = $219.87 - $0.1 = $219.77
   
   Net Realized Profit = $219.77 - $200 = $19.77
   Returns = 9.8%
   
   

8. If Tracker Asset was held for T+29 days (assuming BTC-T was at $100,000)
   
   Trading Fees Paid (at entry)= 0.05% x 200 Lots x (1/100,000) x $100,000= $0.1
   Total Holding Fees Charged= 29 x $0.06 = $1.73
   Qty of Tracker Asset to be sold = $1.73/ $ 100,00 x (1/100,00) = 1.73 lots
   Updated Holdings Qty = 200 - 1.73 = 198.27
   
   If between 5:30PM & 5:35 PM IST BTC-T has moved up by 10% then the position is sold
   Trading Fees Paid (at exit) = 0.05% x 198.27 Lots x(1/100,000) x $110,000 = $0.11
   Wallet Balance Release = 198.27 Lots x (1/100,000) x $110,000 - $0.11 - $0.1 =$218.98 = $218.88
   Net Realized Profit = $218.88 - $200 = $18.88
   Returns = 9.4%
   
   

9. If Tracker Asset was held for T+89 days (assuming BTC-T was at $100,000)
   
   Trading Fees Paid (at entry)= 0.05% x 200 Lots x (1/100,000) x $100,000= $0.1
   Total Holding Fees Charged= 89 x $0.06 = $5.27
   Qty of Tracker Asset to be sold = $1.73/ $ 100,00 x (1/100,00) = 5.27 lots
   Updated Holdings Qty = 200 - 5.27 = 194.73
   
   If between 5:30PM & 5:35 PM IST BTC-T has moved up by 10% then the position is sold
   Trading Fees Paid (at exit) = 0.05% x 194.73 Lots x(1/100,000) x $110,000 = $0.11
   Wallet Balance Release = 194.73 Lots x (1/100,000) x $110,000 - $0.11 - $0.1 =$213.99
   Net Realized Profit = $218.88 - $200 = $13.99
   Returns = 6.99%
   
   

Tracker Asset vs Normal Spot Trading 

In normal spot trading trading fees charged by well known trading platforms is around 0.5%. However, the holding cost is not charged. 

Trading Fees Paid (at entry)= 0.5% x 200 Lots x (1/100,000) x $100,000 = $1

Trading Fees Paid (at exit) = 0.5% x 200 Lots x (1/100,000) x $110,000 = $1.1

Net Realized Profit = 200 x ($100,000 - $110,000) x (1/100,000) - $1 -$1.1 = 17.9

Returns = 8.95%

The returns made in trading spot becomes independent of how long the spot was held unlike while trading Trackers. 

Due to the significantly higher trading fees on trading spot, trading Trackers becomes lucrative when held for shorter periods of time as highlighted in the table below. 

Taxation on Realized Gains/Loss

Since Trackers are derivative products, they are not subject to the specific taxes that apply to Virtual Digital Assets (VDAs). Any gains or losses from Trackers are taxed in the same way as Perpetual Futures and Options traded on Delta Exchange.