Non-Deliverable Trading

Alternatively, the Roll-Over fee

For Takers

Benefit from firm OTC liquidity, without ever holding custody of it - or trade now and settle later.

What is a non-deliverable?

Non-deliverable solution on Finery Markets is an extra layer built over our spot trading (roll-over). It brings the best of both worlds: deep and firm liquidity with zero rejection rates and the ability to roll positions to the following trading days.

What are the best use cases for this feature?

It depends on what application aligns with your business model:

Your solution lacks crypto withdrawal functionality, or you lack the infrastructure for crypto custody:

You can trade all pairs available on the platform without the need for bilateral settlement or receiving crypto as your part of the settlement. Since your customers generate the two-way flow, you can continuously roll positions. Ultimately, you would only need to top up your account if your equity drops below the margin requirements set by your market maker.

You wish to postpone the settlement for another day while trading OTC:

You can do so quite easily. However, please note that there will be a fee associated with this service. Settlement can then be completed on the next or subsequent trading day.

Why would I need non-deliverable trading?

Depending on your business model, you may save money on:

a. Blockchain and settlement fees

b. Custody fees

c. Treasury management

Or add new features to your internal processes:

d. Introduce or move CFDs and Derivative trading to Finery Markets

e. Streamline your operations with treasury if your clients don’t require actual settlement in crypto

f. Utilize the internal inventory, while enjoying the advantages of 0 to 30% prefunding with liquidity providers, to expedite the settlement process with your customers.

What if I don’t always need non-deliverable trading, but rather wish to roll my open positions for a day or two?

Of course you may. There are no binding terms for this feature. It can be used on demand.

How do I engage in non-deliverable trading?

You have 2 options:

a. Continue trading in the same environment without any adjustments.

b. Ask our support team to issue you a separate account for your non-deliverable trading.

How do you calculate the fees?

The overnight cost is applicable only to negative open positions. A deduction is calculated based on a snapshot of open positions at 00:00 UTC time every day.

The value is expressed in percentage per annum (APR) in the 'Assets' section. In simple terms, if you see a rate of 10% APR, it is divided by 365 days in the calendar year. This represents your charge for rolling over your position. Finery Markets will notify you via email if the rate is set or changed against you.

Finery Markets calculates the roll-over and generates a corresponding settlement order, which will adjust your open position.

How do I know that non-deliverable trading is activated by my liquidity provider?

Login to Finery Markets and open ‘Assets and Instruments’. If you see values other than 0 in the "Overnights" column, you can roll your positions.

How will it work?

If you roll over your position after 00:00 UTC, your negative open position (shown in red) will increase. For instance, if you were to settle on T+0 (the same day), you would owe 10 USD for your crypto. By rolling the position over to the next trading day, you now owe 10.1 USD for the same amount of crypto. You can find the charge under the 'History' → 'Settlements' section, 'Technical' tab:

If I settle, will it impact my older open positions first or the newest?

It will apply to the overall open position, thereby decreasing the overall value to which the fee is applied.

What is an APR?

It is the interest rate for a whole year, rather than just a monthly fee/rate.

What is the average APR for assets?

It depends on the liquidity provider and market conditions.

How will I be notified of the charges?

You will be notified by email; we use the email that your account is linked to.

For Liquidity Providers (LP)

What is a non-deliverable?

Non-deliverable solution on Finery Markets is an extra layer built over our spot trading (roll-over). Our system can automatically deduct necessary fees for rolling positions.

What are the best use cases for this feature?

a. If you wish to offer an extension to your OTC offering

b. If you wish to impose settlement hygiene

c. If you wish to pay interest for the assets your taker is holding with you

How do I enable non-deliverable trading?

a. Continue trading in the same environment and specify the APR in the Assets tab

b. Ask our support team to issue you a separate account for your non-deliverable trading

How do I enable non-deliverable trading for Takers?

Control over this feature is located under the Assets section. You may set the fee per coin, which will apply to all takers, or set it per taker.

To apply the rate for all takers, follow these steps

1. Go to Assets

2. Click on the coin or currency you wish to charge a fee

3. Click on the Default overnight rate on the right-hand side

4. Input the value in APR in the Negative overnight rate section if you wish to charge your taker for rolling a position. For example, if they bought one BTC for EUR, the negative rate for EUR will increase the amount they owe you for that one BTC.

5. You may input the Positive overnight rate if you wish to pay the interest for the assets the Taker holds with you

To apply the rate per taker, follow these steps

1. Go to Assets

2. Click on the coin or currency you wish to charge a fee

3. From a drop-down menu select the Taker

4. Click on the Specific overnight rate, % rate on the right-hand side

5. Input the value in APR in the Negative overnight rate section if you wish to charge your taker for rolling a position. For example, if they bought one BTC for EUR, the negative rate for EUR will increase the amount they owe you for that one BTC.

6. You may input the Positive overnight rate if you wish to pay the interest for the assets the Taker holds with you

How do you calculate the fees?

A deduction is calculated based on a snapshot of open positions at 00:00 UTC time every day.

The value is stated in percent per annum (APR) in ‘Assets’. In other words, if you input 10% APR, it is divided by 365 days in the calendar year. This is the payment you will receive for the rolling position.

Finery Markets calculates the roll-over and creates a respective settlement order, which will change the open positions.

How will it work?

If the taker rolls a position over 00:00 UTC, your positive open position (in black) will increase. For example, if they were to settle in T+0 (the same day), they would have owed 10 USD for the crypto. If they have rolled the position onto the next trading day, they would owe 10.1 USD for the same amount of crypto. The charge can be found under the Settlement section, Technical tab.

Do settlements impact older open positions first or the newest?

It will apply to the overall open position, thus decreasing the overall value to which the fee is applied.

Do you notify takers of the changes to the APR?

Yes, we notify their authorized emails the moment you set the rate

What if I want to dispute the applied fee for the service?

Please send an email to [e-mail] or reach out to Egor Morozov through Telegram @gregg_m or via email [e-mail]