Institutional approach in Crypto

Automate your counterparty relationships, and reduce risk, all on one screen.

We provide trading restriction mechanisms and other tools that strengthen protection against credit or market risk.

First Steps

We got you covered, upon your first log in you'd be presented with a guided tour.

Step #1: Setup your global limit

Step #2: Connect with your Liquidity Provider

What does this section regulate?

This section regulates relationships and terms with your liquidity providers. Ask your liquidity provider for the value you should set up on your end. If it’s too great, you may always input the smaller one to limit yourself.

Once the KYC is complete, you will need the ID to set up a limit on your end.

What is a global limit?

The global limit is an overall limit that regulates the maximum value of the positions you can open with all your counterparties. Please update the global limit together with counterparty limits.

What is a counterparty limit?

It is a value that both you, and the Liquidity Provider (LP) determine for trading. 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.

a. Do I need to settle every trade? No. You may lock the exchange rates and settle in bulk.

b. How does the liquidity provider assign the limit? It depends on their risk assessment policy, your jurisdiction, etc.

c. Is it a renewable limit? Yes. Once you settle what you owe your liquidity provider and withdraw the assets, the limit will restore to the initial value

d. My limit is nominated in USD, does this mean I can only buy crypto for USD? No. You may execute crypto-crypto or any crypto-fiat trades. However, the value of the results of the trade cannot exceed the limit nominated in USD.

e. What if I need a temporary increase in the limit for bulk trade? Please contact us and your liquidity provider for the temporary increase of the limit.

f. Would I see more liquidity if my limit gets increased? Yes. You only see liquidity that your gross limit permits.

What is a gross limit?

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.

a. How do you calculate the gross limit? We take the absolute values of everything you see in positions tab and summarize them using the formula below. Mind you that deposits also utilize the limit. Formula:

MAX( |SUM(Long positions)|, |SUM(Short positions)|)

b. What if I set my limit in USD and my counterparty sets it in EUR? We use a mark-to-market type of accounting thus we will recalculate the EUR value back to USD and will use the smaller value out of the two. The same logic applies to limits nominated in crypto.

c. What is an applied gross free limit? This the value of how much you may use for long or short positions (buying or selling)

What is equity?

We summarize the value in USD of your open positions using the formula below: EQUITY = SUM(Positions) Since the base currency of our platform is USD, the assets you hold to maintain the required level of equity would be reevaluated against USD every 15 minutes. For example, if hold BTC as your collateral, its value may fall during the day to accommodate the limit in USD. Thus, your liquidity provider and the system would require you to top up the account.

How do I set up a limit with my liquidity provider (LP)?

  1. Go to Risk Management

  2. Press Add risk profile

  3. Input the counterparty ID that you receive from your LP

  4. Select the currency of your limit

  5. Input the Gross limit (buying power)

  6. Press Add Risk Profile

Which currency I may use for the limits?

The one you use to evaluate your market exposure. We suggest using the same currency for global and counterparty limits. Our recommendation is to use fiat currency (USD or EUR) for the limits.

Which limit prevails if they are different?

The smaller limit prevails over the greater one. For example, You have set 30 USD of Gross limit however, your LP has set only 10 USD for the counterparty limit described above. The system will use 10 USD as a Gross limit The Global Limit is set to 20 USD but the summary of my counterparty limits is greater than 20 USD. Would I be able to open positions greater than 20 USD? No. The global limit will prevail, and it will be utilized by the rule of first come, first served. Moreover, such inconsistencies will result in your inability to post more orders to Finery Markets’ servers. Please pay close attention so you have enough of the Gross Free Limit in the Global Section and Counterparty sections

If my liquidity provider requires posting collateral, how do I know if it’s time to settle or top up?

If you see the following statuses Margin Call, Low Gross Free, Restricted trading, liquidation, it’s time to top up.

I have stopped seeing quotes, what should I look for?

Firstly check that you have available gross free limit in both Global and Counterparty limits Check limits for special marks, it may be time to top up your account.

If all the checks are normal, contact us or your liquidity provider.

Can I disable trading with the liquidity provider?

You may disable trading with a counterparty by unticking the box in the card of the Configure menu. The trading will be stopped while allowing settlements. It will be convenient if you prefer to stop trading while settling, trade with your counterparty for special occasions (e.g. trading during banking hours), or if you wish to halt trading. Please note that you will still be charged the overnight rate.

Can I disable trading of certain coins with my counterparty?

Click on Configure on the client’s card, and select Limits per Asset. From this screen, you may limit the amount of a particular coin traded as well as stop trading it together. You can set the limit per asset either in the currency of the asset or in the other currency you prefer. In the case of the latter, we will use the mark-to-market approach to determine the value of the asset. Please keep in mind that if you have an open position nominated in the coin, your counterparty would still be able to trade with it until the moment the position is closed.

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