1.General

Deribit derivatives exchange has 2 trading pages:

Below you can find general exchange information and rules. In the menu above you can go directly to the different sections with information about fees, futures trading, options trading and the api.

1.1.Fees

Deribit Derivatives Exchange fees are the lowest fees currently available on any crypto derivatives exchange and operates a maker-taker model. Futures orders which provide liquidity receive a rebate of 0.02%. Orders that take liquidity are charged a small fee of only 0.05%. The fee is calculated as a percentage of the underlying asset of the contract.

 


Futures

Maker Rebate 0.02% Rebate
Taker Fee 0.05% Fee

Options (Fee as a percentage of underlying value)

Maker Fee 0.04% (0.0004BTC)
Taker Fee 0.04% (0.0004BTC)

Fees can never be higher than 20% of the price of the option. For example if an option is traded at 0.0001BTC, the fee will be 0.00002BTC (instead of 0.0004BTC), thus 20% of 0.0001BTC.


Delivery (settlement at expiration)

For deliveries (expiration) half the fees of taker orders are charged. (0.025% for futures, and 0.02% for options, where for options the fee can never be more than 20% of the value of the option.)


Deposits and Withdrawals

Deposits are credited after 1 confirmation. Withdrawals are processed instantly if the balance in our hot wallet permits so. We keep only a small percentage of coins in hot storage, so there is a chance that your withdrawal cannot be processed immediately. If needed, once a day we replenish the balance of the hot wallet from cold storage.

Withdrawals Free (except for miner fee as calculated by Bitcoin Core)
Deposits Free

Maker: a “maker” order is an order that adds liquidity to the orderbook. A maker order is an order that does not execute immediately but instead goes into the orderbook.

 

Taker: a “taker” order is an order that removes liquidity from the orderbook. A taker order i an order that will execute immediately against other orders upon submission to the exchange.

 

1.2.Matching Engine

Deribit exchange matching engine is based on “first come first serve” principle. Orders execute in price-time priority as received by the matching engine after passing risk engine checks.

The matching engine can process thousands of orders per second, and also hundreds of orders per second from a single account. This is not a luxury but a necessity for any modern options exchange where hundreds of assets need to be quoted in real time. The average latency in the matching engine and risk engine is on average 0.6 ms for an order. So usually within 0.6ms after receiving an order, a confirmation message has been returned to the client. If an order executes immediately, an execution report will be included in this message.

Currently the matching engine only accepts limit orders.

The matching engine DOES NOT allow for self-trading. If an order is sent to the exchange that would execute immediately with an order from the same account in the orderbook, this order will be rejected. Note that the order will only be rejected if it would actually execute against another order in the same account. So an order overlapping with other orders in same account might still be accepted and executed if it would execute against other orders in the orderbook not from the same account.

Thanks to an average total latency for an order to pass risk engine and enter the orderbook via the matching engine of only 0.6ms it is possible to send hundreds of orders per second from a single account.

1.3.Risk Engine

The risk engine is a vital part of any derivatives exchange. Deribit risk engine can assess thousands of incoming orders per second and hundreds of incoming orders per second from a single account. If the risk engine approves an order, the order will continue its way to the matching engine to get matched or enter the orderbook. Then a message is sent back to the client. This whole process takes on average less than 1ms.

1.4.Deribit BTC Index

Currently the Deribit BTC index is made up the latest prices from Bitstamp, Gemini, Bitfinex, Itbit, GDAX(coinbase) and Kraken. From those 6 exchanges Deribit retrieves continuously best bid and best ask prices and calculates the mid price. Then the highest and lowest price are taken out. The remaining 4 exchanges are then each for 25% accountable for the BTC price index. So at all times there are a maximum of 4 exchanges making up the BTC price index weighting each 25%.

There is a page dedicated to the price index where you can see at any time which exchanges are actually part of the index at this very moment. (https://www.deribit.com/main#/prinx_chart)

Deribit BTC Index

Deribit BTC Index

If we don’t receive any signal from an exchange for more than 3 minutes, this exchange will be taken out of the index calculation. If deribit can only receive real time data from 1 or 2 exchanges, those will make the index, though, if ever, this would occur very rarely.

Please note that the composition of the Deribit BTC Index could change if Deribit management decides so. The purpose of the Index is to represent the actual USD price traded on the biggest exchanges. If an exchange has prices consistently out of line with the majority of other exchanges, the exchange might be taken out of the Index, with or without substitution by another exchange. This guarantees that Deribit Index remains healthy, representing current USD value of Bitcoin as good as possible at all times. Also if an exchange delays withdrawals or is hardly accessible, it might be taken (temporary) out of the index. Also it could happen that we add additional exchanges to the Deribit BTC Index.

1.5.Expiration Price

The price used for settlement and delivery of contracts will be calculated as the time weighted average of the Deribit index over the last half hour before expiration. The Deribit index gets calculated every 6 seconds.  So the final delivery price is the average of 300 index prices taken in the last 30 minutes before expiration. 

1.6.Cross Margin

All funds held in an account will be considered as available margin. Equity and margin will fluctuate in the market as prices change. If the maintenance margin in an account is higher than equity in an account a margin call is triggered. A users position will be incrementally liquidated in small steps (maximum 10 contract/margin call) until equity is higher than maintenance margin.

1.7.Auto Liquidation

Deribit is operating with an incremental auto-liquidation system. This means that as soon as an account does not have enough equity to maintain its positions, (as assessed by the risk engine) a small part of the position will be closed in the market at market prices. At this moment the liquidation orders sent to the market are up till 400 future contracts of $10 each and 1 option contract on 1BTC per step. This happens in real time at a speed of 20 rounds per second, such that the maintenance margin of an account can only be higher than the equity of an account for a fraction of a second. (provided there is a liquid market that makes it possible to liquidate at all). As soon as maintenance margin is again lower than equity, liquidation will stop.

The system would first liquidate future positions and after that liquidate any option positions, in such a way that the risk of the position will be reduced. (basically striving for a “delta neutral” position where possible). There are circumstances possible where options would get liquidated first, where options delta’s are bigger and opposite direction than all other delta’s on the platform.

1.8.Insurance

Deribit has an insurance fund that should cover all losses of bankrupt traders. Due to our advanced real time incremental liquidation system, it will be actually a challenge to go bankrupt even if a trader would wish to do so. On the insurance page we will publish in real time any occurring bankruptcies and the last state of the insurance fund. As long as there is BTC in the insurance funds, withdrawals of funds (including (unrealised) profits of not expired assets) are available for immediate withdrawal. If the insurance fund gets depleted, any then occurring bankruptcies will be socialised among the winning traders, though our goal is to never get to that point, and margin requirements will be made more strict as soon as bankruptcies appear. The Insurance fund will start with 100BTC. Deribit will never take out funds of the insurance fund for anything else than covering bankruptcies. Currently there are is a starting capital of 100BTC in the insurance fund and no bankruptcies have occurred so far.

1.9.(Co)Location

Deribit exchange servers are located in OVH datacenter in Strasbourg (France). Professional traders looking for lowest possible latency can rent a server in OVH datacenter in Strasbourg and have only 0.1ms latency to the matching engine of Deribit Exchange.

1.10.Test Server

On https://test.deribit.com the exchange is running in test mode with all functionality but not with real bitcoins. Internal “deribit” coins can be used to withdraw/deposit funds. New updates are also first tested on this server before they will be implemented in production.

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