Platform Overview
Multi-dealer marketplace for businesses in crypto.
Automate your counterparty relationships, and reduce risk, all on one screen with our Risk-Management
You need to get access to the production environment trade.finerymarkets.com and have the trading limits set.
You can do it either in GUI or via API. In GUI, open Trading tab where you can see a tradable order book, an order input form and last trades. Choose an asset and then specify price for limit orders, size, side and order type. Feel free to use the Client Order Id field if you need it.
Order book displays accessible liquidity that is unique for a particular taker. If a taker does not have sufficient free Global and/or Counterparty limits, a part of the quotes streamed by liquidity providers is not displayed and is not tradable.
These are 2 order types. Market order is an order that must be immediately filled at any market price while Limit order is an order that must be immediately filled at the specified limit price or better. Market and Limit orders may be either IOC or FOK.
- Immediate-or-Cancel (IOC). If it is not completely filled, the resting size will be cancelled. Partial fills are allowed.
- Fill-or-Kill (FOK). FOK order is an order that must be immediately filled entirely. Otherwise, it will be totally cancelled. No partial fills are allowed.
Please keep in mind that we don’t offer resting limit orders. Thus, you will be able to place orders if there is a price to match it. For example:
- 1 BTC = 10$ on Finery Markets
- You place the order where 1 BTC = 9$
- Your order will be rejected until there’s a price to match
However, if you place the 1 BTC = 10$ it will be immediately executed
Finery Markets has a maker-taker concept. There are two types of the users on the Platform: a maker and a taker.
- A market maker provides liquidity by posting quotes to the order book; it may use "limit" and "postOnly" order types. Self-trades are prohibited.
- A market taker consumes liquidity and may use "marketIOC", "marketFOK", "limitIOC" and "limitFOK" order types.
A maker's order may be matched only to an order of a taker; a maker-maker trading is prohibited. Thus, it may lead to a situation when the price of an ask order is lower than the price of a bid order.
Until 01.09.2023 there are no fees on the platform for takers. After 01.09.2023 there are 3 plans available:
- Tier 3: 3 bps applied if the turnover is less than $50 mln
- Tier 2: 2 bps applied to the turnover is ≥$50 mln and < $200 mln
- Tier 1: 1 bps applied to the turnover is >$200 mln
As a result of trading, the Platform calculates net positions to settle in real-time. Post-trade counterparty settlement is peer-to-peer and may be in the form of a blockchain transaction, bank wire, or alike. The Platform is never a side to any deal and is not involved in the actual settlement. However, the Platform requires information about settled trades in order to apply updated limits to trading. A settlement (see tab Settlements) is created when a settlement order is executed (i.e., settled). A settlement order is executed when a settlement transaction (see tab Transactions) is committed (i.e., confirmed) by a receiving trading party.
Yes, you will receive a daily statement showing your limits, open positions, trades and settlement.
The sum of deals and settlements (i.e., settled deals) is an open position. For example, if you have bought 1 BTC for 10000 USD, your open positions are +1 BTC and -10000 USD; if then you have settled 0.6 BTC against 6000 USD and sold 0.4 BTC for 4100 USD, your resulting positions are 1-0.6-0.4=0 BTC and -10000+6000+4100=100 USD. You can see your current open positions on the Trades tab.
The central part of the concept is counterparty limits (please read Limits Explained). You can make a trade only if you have trading limits set and your free limits are positive.
- there are Global limits, which apply to the overall activity of a user, and Counterparty limits, which apply to a particular counterparty of a user
- there are also Net limits and Gross limits
- Net Limit Utilization is equal to the current P&L of all open positions
- Gross Limit Utilization is equal to the max of an abs value of all short positions and abs value of all long positions
The values of each limit are defined and set by a user (via API or in GUI: Trade > Limits). When calculating utilization, the Platform takes into account open orders and unsettled transactions; worst-case scenario approach is applied. Available for trading Net/Gross limit equals Net/Gross limit minus utilization.
The Gross limit is regulating the maximum possible open position taker or maker may open (exposure). You can make a trade only if you have trading limits set and your free limits are positive.
You have 2 limits:
Global Gross Limit | Counterparty Gross Limit (Add new) |
|---|---|
Both makers and takers should set a global gross limit to start trading. It regulates the maximum possible open position across all counterparties | In order to start trading with each other, counterparties should set their counterparty limits against each other. It regulates the maximum possible open position with a particular counterparty |
Both of the limits use the following formula to calculate the gross limit utilization (exposure):
Your exposure=MAX( |SUM(Long positions)|, |SUM(Short positions)| )
Example of positions expressed in gross limit
The Counterparty Gross limit is 800000 USD
Asset | Value | Comment |
|---|---|---|
BTC | +10 | If 1 BTC equals 20000 USD |
USD | +200000 | |
ETH | -300 | If 1 ETH equals 1200 USD |
Calculation = MAX(|+200000+200000|,|-36000|)
Your exposure equals 760000 USD, and your free gross limit is 40000 USD. This means that you are able to buy or sell additional 2 BTCs (or other assets) at this given moment.
Equity represents the result of your trading in the selected currency (i.e. your balance)
EQUITY = SUM(Positions)
Asset | Value | Comment |
|---|---|---|
BTC | +10 | If 1 BTC equals 20000 USD |
USD | +200000 | |
ETH | -300 | If 1 ETH equals 1200 USD |
Calculation = (+200000 USD +200000 USD - 360000 USD) = 40000 USD
No, Finery Markets is a non-custodial platform, however, you will need to settle your open position against a market-maker.
Finery Markets is a peer-to-peer platform with post-trade settlement. This means that trading parties settle open positions directly with each other. In order to facilitate the settlement process, the Platform provides for a protocol that allows:
- Settlement Request, which is sending and receiving general requests for settlement;
- Settlement Transaction, which is sending and receiving information about a particular settlement transaction.
Settlement Request can be sent to any counterparty with a mutual counterparty limit. It specifies only the asset that an initiator wants to receive. Settlement Transaction is designed to send information about an actual blockchain transaction or a bank wire. Thus, it requires not only eligible counterparty but also an asset and its quantity:
- There is a restriction applied to adding a settlement transaction - the initiator must have a negative position in a specified asset against the counterparty, thus, the specified amount of the asset must be positive. The rationale here is that the initiator can add only such a settlement transaction that reduces the open position of a specified asset. Besides, an initiator cannot send more than it owes.
- Once a settlement transaction is added, a respected settlement order is created in the Platform; to send a settlement transaction an initiator must add TxId (it might be a hash of a blockchain transaction or a bank reference); once a settlement transaction is committed by the recipient, a respected settlement order is executed and a settlement deal is created in the Platform.
For Takers
If you intend to request a settlement below the threshold of your Liquidity Provider (Market Maker), put the tick in “Fee paid by me” field.The fee will be deducted from the requested amount, thus the amount you will receive to your wallet or custodian account will be smaller than the one you have requested. The fee amount will be shown in your settlement history.
If you use API for automated settlements, please note that the amount will not be adjusted in incoming settlement transaction. You will have to deduct the
Network Fee from the Amount on your end. Since the amount in the transaction will differ from the amount received to your wallet.For Makers
If the Taker sends the Settlement Request with
Efx::Flags 1 - Fee paid by recipient , kindly note that you must specify the network fee when sending the settlement transaction.For example:
- 1.The Taker requests 18 000 USDT with Flag 1
- 2.Send the 18 000 USDT deducting the fee. For instance 17800 USDT sent and 200 USDTs were the network fee.
- 3.Upon initializing the the settlement transaction input the 18 000 in amount and 200 in Network fee
Yes, the Platform supports REST and WebSockets APIs for both view-only and trading purposes.
Last modified 1mo ago