What is Deribit?
Deribit is a Netherlands-based cryptocurrency exchange that specializes exclusively in options and futures trading. Unlike many other exchanges, Deribit does not support spot trading on its platform.
Leverage and Popularity
Deribit offers up to 100x leverage for Bitcoin futures, making it one of the highest leverage options in the crypto market. Despite facing competition from larger exchanges like BitMex and Binance, Deribit is gaining popularity due to its user-friendly interface and a reputation for being a reliable options trading platform.
Location and Registration
Established in 2016, Deribit is officially registered as Deribit B.V. The company's address is Stationsstraat 2 B, 3851 NH, Ermelo, The Netherlands.
Leadership and Security
The platform is led by CEO John Jansen and CTO Sebastian Smyczynski. Notably, Deribit prides itself on being one of the few cryptocurrency exchanges that has never been hacked. Security measures include holding between 95% and 99% of users' Bitcoin in cold storage.
Matching Engine and Low Latency Trading
Deribit emphasizes its advanced matching engine, developed over two years, designed to provide extremely low-latency trading, with less than 1 millisecond delay. Experienced traders seeking the lowest latency are advised to set up servers in Strasbourg, France, where Deribit's own servers are located.
Regulatory Status
As of now, Deribit operates as an unregulated platform, as European regulators have not categorized cryptocurrencies as financial instruments, and the legal framework is still under development.
Futures Trading on Deribit
Futures contracts on Deribit are set at $10 with default leverage at 1:10, extendable up to 1:100. The Deribit index, calculated from average prices on major exchanges, serves as the mid-crypto market price for these contracts.
Order Execution and Limitations
Deribit allows market orders, but it lacks options for stop-loss or take-profit orders. Closing positions or setting stop-loss/take-profit levels must be done through the trade slip, not the open order tab.
Deposit and Withdrawal Options
Deribit only accepts Bitcoin (BTC) as a funding method, operating as a purely crypto-focused platform similar to BitMEX. Deposits and withdrawals are straightforward, with one confirmation required for trading after deposit.
Fee Structure
Deribit employs a maker/taker fee system. Perpetual contracts have a 0.075% taker fee and a 0.025% maker fee. Futures contracts incur a 0.05% taker fee and a 0.02% maker rebate. Options carry a 0.04% fee on the underlying asset, with the stipulation that the fee cannot exceed 12.5% of the option's price.
What are the trading fees on Deribit?
Spot maker/taker fee is 0% (as of our last Feb 2024 knowledge feb 2024)
Does Deribit offer leverage trading?
Deribit offers spot margin trading and perpetual futures trading.
