FalconX Prime Connect: Custody, Credit and Deribit Access
Summary
The document describes an institutional arrangement that lets clients trade on Deribit through FalconX Prime Connect. FalconX provides prime brokerage services such as credit lines, post-trade settlement, and cross-margining, while client assets are held in custody subject to Malta regulation. Clients retain access to Deribit’s trading features but establish a new relationship and account with FalconX.
The FAQ explains operational and counterparty changes: existing users must complete FalconX onboarding and KYC, and open positions cannot be transferred. FalconX’s terms apply to the client, and the client’s credit exposure shifts from Deribit to FalconX. Assets are described as held in an omnibus custody structure with ledger segregation, alongside separate protections for assets pledged to Falcon Labs. The document is a service announcement, not an independent assessment of those protections or a comparison of providers. It says the offering is for institutional traders and gives no evidence about service performance, costs, or how assets would be recovered in a real insolvency.
Key ideas
- Clients access Deribit through a new FalconX relationship and account, with the same trading features.
- Onboarding requires FalconX KYC, and existing open positions cannot be transferred.
- The client’s direct counterparty relationship and applicable terms shift from Deribit to FalconX.
- The announcement describes segregated custody and prime services but provides no independent assessment of the arrangement.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.