Deribit–Fireblocks Off-Exchange Settlement for Crypto Collateral
Summary
The document describes Deribit’s off-exchange settlement arrangement with Fireblocks. Clients keep collateral in a jointly controlled MPC wallet and use daily settlement to move assets between that vault and Deribit. The exchange can verify collateral on-chain while clients retain control of assets outside the venue, aiming to reduce custody exposure and make capital available across trading venues.
It outlines the settlement flow, account setup, required service agreements, and operational roles, including a limited-purpose collateral signer. It also explains how deposits, withdrawals, open positions, settlement thresholds, and recovery are handled. For example, open positions remain open during activation, while collateral moves to the vault on settlement. The material is a service description and does not provide independent evidence that counterparty risk is eliminated. It notes that standard liquidation rules still apply, settlement depends on onboarding and operational processes, and special recovery procedures apply if Fireblocks is unavailable or Deribit defaults.
Key ideas
- Clients hold collateral in a Fireblocks MPC wallet linked to Deribit for daily settlement.
- Deribit can verify collateral on-chain without custodying the assets in the vault.
- A limited-purpose collateral signer supports automated or forced settlement flows.
- Open positions remain open during activation, while collateral is transferred according to settlement rules.
- The service requires accounts and agreements with Deribit, Fireblocks, and Coincover.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.