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BVIV perpetual: Markets.xyz, Volmex, Perps.inc and SEDA bring Bitcoin volatility onchain

Markets.xyz, Volmex, and Perps.inc are launching BVIV, an onchain perpetual for direct long or short exposure to 30-day Bitcoin implied volatility.

Bitcoin traders already have dozens of ways to trade direction.

BVIV adds a different market: the price of uncertainty itself.

Markets.xyz is launching BVIV in collaboration with Volmex and Perps.inc, bringing Bitcoin implied volatility directly to Hyperliquid through a perpetual market.

The market tracks the Bitcoin Volmex Implied Volatility Index, giving traders direct long or short exposure to the market’s expectation of Bitcoin volatility over the next 30 days.

Volmex provides the underlying volatility benchmark and term structure, while Perps.inc has collaborated on the market structure, funding design, liquidity coordination, and deployment process. Markets.xyz operates the market as the HIP-3 deployer.

This is not another BTC price market.

Traders can take a view on whether Bitcoin is about to become more or less volatile without predicting whether its next major move will be up or down.

Key takeaways

  • BVIV is launching on Markets.xyz in collaboration with Volmex and Perps.inc, combining Volmex’s volatility benchmark, Perps.inc's market-design work, and Markets.xyz’s Hyperliquid infrastructure.
  • BVIV measures the market’s forward-looking expectation of Bitcoin volatility over a constant 30-day period.
  • Going long BVIV expresses the view that expected volatility will rise. Going short expresses the view that it will fall.
  • BVIV is a perpetual derivative, so it has no fixed expiration date.
  • The launch configuration uses isolated margin and a 5x margin table.
  • Funding is dynamic and designed specifically for a rolling volatility index rather than copied from a standard crypto perpetual.

What is BVIV?

BVIV is the Bitcoin Volmex Implied Volatility Index.

It measures the constant, forward-looking 30-day expected volatility of BTC using real-time derivatives market data. In simple terms, it shows how much movement the options market is pricing for Bitcoin over the next month.

BVIV is quoted in volatility points. A BVIV level of 50 represents approximately 50% annualized implied volatility over the index’s 30-day window.

That does not mean Bitcoin is expected to move 50% over the next month. Volatility is annualized and measures the expected magnitude of price movement, not its direction.

A higher BVIV level means the market is pricing larger potential swings. A lower level means traders are pricing a calmer environment.

Bitcoin can rally while BVIV rises, fall while BVIV rises, or move higher while BVIV declines. The direction of BTC and the level of expected volatility are separate trades.

What Markets.xyz is listing

Markets.xyz is listing a perpetual contract that follows the 30-day BVIV index.

Unlike an option, it has no strike price or fixed expiration date. Unlike holding an option portfolio, traders do not need to select contracts across different strikes and maturities.

The position instead provides linear exposure to changes in the index:

  • Long BVIV: Benefits when the BVIV index rises.
  • Short BVIV: Benefits when the BVIV index falls.

Because it is a perpetual, funding payments help keep the market aligned with its underlying reference over time. Hyperliquid perpetuals do not expire and use funding as part of their convergence mechanism.

The launch specification uses the ticker BVIV, a 5x margin table, and strictIsolated margin. Under isolated margin, the collateral assigned to the position is separated from unrelated account collateral. Texto pegado.txtTXT

The contract does not provide ownership of Bitcoin, Bitcoin options, Volmex, or any other underlying asset.

How a BVIV trade works

Assume BVIV is trading at 50.

A trader expecting an increase in Bitcoin volatility can open a long position. If the index rises from 50 to 60, BVIV has increased by 20%, and the long position benefits from that move before accounting for leverage, funding, and trading fees.

A trader expecting volatility to compress can open a short position. If BVIV falls from 50 to 40, the short position benefits from the decline.

The important distinction is that neither trade requires a directional BTC forecast.

A trader may expect a major macro announcement, regulatory decision, liquidation event, or market dislocation to produce a large move without knowing which direction Bitcoin will take. A BVIV position isolates that volatility view more directly than a standard BTC long or short.

How BVIV funding works

A rolling volatility index behaves differently from the spot price of a crypto asset, so a standard fixed interest-rate assumption would not be sufficient.

The BVIV funding design uses two main inputs:

  1. The shape of the Volmex forward-volatility curve. This estimates how the rolling 30-day index should naturally move as time passes.
  2. The recent movement of BVIV itself. This accounts for the additional effect created by quoting the contract directly in volatility units.

In simpler terms, the volatility curve prices the expected drift, while the historical index path prices the adjustment required for changes in BVIV itself.

The target funding component is recalculated hourly. Hyperliquid then applies funding hourly using its HIP-3 funding mechanism. Positive funding means longs pay shorts. Negative funding means shorts pay longs.

The final funding rate also includes Hyperliquid’s standard premium component, which reacts when the perpetual trades away from its reference price. HIP-3 deployers can programmatically update the interest-rate component used in that calculation. Hyperliquid

Funding can therefore change over time and can be positive or negative. Traders should review the current rate before opening a position rather than assuming one side will always receive funding.

Why trade volatility directly?

Most crypto markets force traders to take a directional view.

BVIV creates a separate market for expected movement.

That can be useful for traders looking to express views on:

  • Volatility expansion around major events
  • Volatility compression after uncertainty passes
  • Changes in market stress or demand for protection
  • The relationship between BTC direction and implied volatility
  • Hedging portfolios that are exposed to sudden increases in market turbulence

The perpetual format also removes several parts of conventional options trading, including strike selection, expiration management, and rolling individual contracts.

It is not a replacement for options.

Options provide nonlinear payoffs, defined maturities, and exposure to several risk variables. BVIV provides simpler, linear exposure to the level of the volatility index. The trade-off is that perpetual positions introduce funding, basis, leverage, and liquidation risk.

Built with Volmex and Perps.inc

BVIV is being launched collaboratively by Markets.xyz, Volmex, and Perps.inc.
Each party contributes a different part of the market:

  • Volmex created and publishes the BVIV benchmark and its underlying volatility term structure.
  • Perps.inc has worked alongside Volmex and Markets.xyz on the funding design, market structure, liquidity coordination, and deployment.
  • Markets.xyz, operated by Kinetiq, deploys and operates the HIP-3 market on Hyperliquid, including the oracle relay, risk parameters, and onchain deployer actions.

The BVIV funding methodology itself was developed by Volmex and Perps.inc specifically for a perpetual based on a rolling volatility index, rather than applying the standard assumptions used by a conventional crypto perpetual.
The result is a purpose-built market for trading Bitcoin implied volatility directly on Hyperliquid.

The bottom line

Together with Volmex and Perps.inc, Markets.xyz is bringing Bitcoin implied volatility directly onchain as a perpetual market.
Instead of predicting whether BTC will rise or fall, traders can take a position on whether the market is underpricing or overpricing the size of its next move.
The contract is simpler than constructing an options portfolio, but it remains a leveraged derivative with dynamic funding, basis risk, and liquidation risk.
Direction has always been easy to trade.
Now volatility is a market too.

How to trade BVIV on Markets.xyz

Open Markets.xyz and select the BVIV market once trading is live.

  1. Choose long if you expect Bitcoin implied volatility to rise, or short if you expect it to fall.
  2. Enter your position size and select leverage within the live market limits.
  3. Review the current funding rate, isolated margin requirement, and estimated liquidation price before confirming the order.

BVIV provides derivative exposure to the Volmex index. It does not provide Bitcoin, options, shares, voting rights, or ownership of any underlying asset. Leverage magnifies gains and losses and can result in liquidation.

Sources

Disclosures

Listed at a third party's request. These markets are proposed by third parties and brought to mkts through Perps.fun. Kinetiq reviews each market before it goes live, but approval is not an endorsement of the underlying asset, index or project, and says nothing about its quality, value or prospects.
Pricing and liquidity are sourced by third parties. Pricing, market data and liquidity for these markets are arranged by Perps.fun and/or the third-party deployer. Kinetiq deploys the market and relays the data provided to it, but does not select or produce that data and does not provide liquidity.
Terms of trading can change. Kinetiq sets and adjusts the risk parameters for every market it deploys, and may restrict, halt, settle or delist a market. Notice is given in advance where practicable, and where a market is settled the settlement method is published at the time.
Third-party content is not ours. Third-party deployers and Perps.fun publish their own material. Nothing in it is advice from Kinetiq or a statement about the market's merits.

This article is for informational purposes only and does not constitute investment advice. Derivatives can involve leverage, liquidation, and total-loss risk.