Deribit

Deribit is a platform, which appeared on the financial market in 2016. It offers users advantageous trading conditions for options, Bitcoin, and Ethereum futures.

In our review, we will thoroughly examine the opportunities provided by the project and ascertain whether Deribit is a trustworthy cryptocurrency exchange or potentially a scam.

 

Why Deribit?

Deribit – an exchange that appeared online in 2016. The site of the organization deribit.com has a multilingual interface, which indicates the orientation towards the international market. The main office of the project is located in Panama, where the company’s activities are regulated. Although the project is not very well-known among users, it is gradually gaining popularity. The platform offers customers a wide range of trading options. Thus, users have access to both futures trading and options. Trading is done with a leverage of up to 1:10, and for futures, a credit of up to 100x is available. Clients also have the opportunity to trade on margin.

For beginners who do not have enough experience in trading, a demo account is available. Thus, users can gain access to the functionality of the project without risking their own money, because trading is done using virtual money. Also on the site, you can find an informative blog that contains useful articles and educational programs.

The trading platform itself has a rather complicated and confusing interface. Even an experienced user will need extra time to understand the functionality of the project, not to mention newcomers.

The advantage is that many account management functions are available on the trading platform. For example, a client can create additional sub-accounts, set up cross-margin between accounts, and get a full report on his trading statistics. Also in the upper right corner of the platform, you can change the interface theme.

Futures Trading

Like other exchanges, the company offers users “perpetual futures,” which are regular contracts with no expiration date. The markets tend to change depending on the expiration date of the contract. You can navigate between trading options using the left-hand menu, and between Bitcoin and Etherium using the tabs at the top.

Also available on the exchange are perpetual contracts and options trading. Four types of orders are available for futures instruments:

• Limit. Placed with a predetermined cost. Terminated only when manually executed or deleted.
• Market-based. Execution is immediate.
• Stop Market. A market order, with which a stop loss is simultaneously set, is executed at the market price.
• Stop Limit. Similar to the previous variant, here a limit order with a stop is used.

For users to have constant access to the trading floor, a mobile application was created. Thus, customers can log into their account 24/7. Both iOS and Android versions are available. Among the main advantages of the site are:

• available information about the team;
• loyal trade commissions;
• large leverage;
• training programs;
• availability of a demo account;
• mobile application;
• cold storage Cryptocurrencies.

 

How to Exchange Cryptocurrency on the deribit.com Platform?

Since there is no exchange for fiat money, the user can choose one of the following options:

• transferring money from a cryptocurrency wallet to a bank card with the help of third-party resources;
• output via exchanger.

 

Verification on the Deribit Platform

The company respects the anonymity of its users, so on deribit.com there is no account verification. Nevertheless, you need to set up the protection of your profile by enabling two-factor authentication after registration. This feature is disabled by default, so you must enable it when you sign in. You can also activate the IP address locking in your account settings to ensure security. This means that if the user is logged in to the account from a different IP address when the user is logged in, the session will be terminated.

 

Deposit and Withdrawal

To make a deposit, it is necessary to perform a few simple actions. The company does not provide the ability to deposit fiat money. If a client has only fiat, they need to use the gateway for fiat currencies or exchange them themselves. To deposit cryptocurrency you need:

• click the “Deposit” button in the upper right corner of the menu;
• copy the address of the deposit to which the transfer will be made;
• insert it in your wallet and make the transfer.

Withdrawal of Earnings

Withdrawal of earnings can also be made quickly:

• click on the “Output” button;
• create a new wallet, give it a name, and attach the address of the external wallet;
• specify the amount to withdraw and withdraw funds.

Note that although the site states that the withdrawal of funds is as fast as possible, in the application you can specify the priority which will depend on the cost of commission.

Deribit Crypto Exchange Commission

Like most exchanges, the company uses a “maker-taker” type model. Thus, traders who provide liquidity to the tumblers pay a lower commission, and sometimes even receive a discount. Takers, on the other hand, pay a higher percentage of commission.

BTC perpetual contract

• The rebate maker is 0.01%.
• The taker commission is 0.05%.

BTC futures

• The Rebate Maker is 0.0%.
• The taker commission is 0.05%.

ETH perpetual contract + futures

• The rebate maker is 0.025%.
• The taker commission is 0.075%.

The commission can never be more than 12.5% of the option price. For example, if an option trades for 0.0001 BTC, the commission will be 0.0000125 BTC (instead of 0.0004 BTC), which is 12.5% from 0.0001 BTC. When trading options, the company sets a maximum commission limit. Therefore, the commission can never exceed 12.5% of the value of the option. This rule applies to options that are “out of the money”.

Liquidation fees

The service charges a commission for liquidation orders. Orders are executed on accounts where the margin has been exhausted. The main part of the fees goes to the insurance fund, which protects traders from the socialization of losses. The amount of the liquidation fee is:

• futures: 0.30% BTC and 0.90% ETH;
• perpetual futures: 0.30% BTC and 0.90% ETH;
• options: 0.15% VTS and 0.19% ETH.

Deposit and Withdrawal fees

There is no fee for deposits but there is a fee for withdrawals. The amount depends directly on the mining fee, which is currently charged by the network. The faster the user needs to make a withdrawal, the higher fee is charged.

 

Deribit Bonuses

There are no active bonuses for customers at this time.

Referral Program

Active users who want to earn passive income can participate in an affiliate program. Also as part of the program new users who have registered on deribit.com via valid affiliate link, receive a 10% discount on bidding for the first six months. Referrers receive the following remuneration:

• 20% commissions for the first 6 months after registration;
• 10% commissions for the next 6 months after registration.

 

Complaints About Deribit

Since the exchange has been on the financial market since 2016, you can find a considerable number of reviews from customers online. In general, the company has a mixed reputation. From the positive aspects, customers note low commissions, the wide functionality of the platform, and large leverage. From the negative aspects, users note the fact that deposits and withdrawals can be made in bitcoins and Ethereum, as well as the lack of fiat funds, and inconvenient interface.

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Regulation of the Crypto Exchange deribit.com

The financial sphere is one of the most popular among fraudsters. To avoid falling for an unscrupulous project, you should study the documentation carefully, as well as check the license. Let us consider how the project is regulated.

Regulator

Deribit has received a provisional license as a Virtual Asset Service Provider (VASP) from the Dubai Virtual Asset Regulatory Authority (VARA). This license allows Deribit to provide VA Exchange Services, which includes spot and derivatives trading. However, the license will only be operational once Deribit meets all the remaining conditions and specific localization requirements set by VARA (check regulator).

Documentation of the project, as well as the location of the head office, is publicly available to users.

Documents from deribit.com:

• Read the “Privacy Policy” on the Exchange website (See);
• Read the “Rules of Service” on the Deribit exchange website (See).

Deribit User Agreement

The “User Agreement” is the main document of the project, with which each user should get acquainted before starting cooperation with the company. The agreement contains the basic information concerning the trade, as well as the responsibilities of both parties. Let’s consider some points in detail.

The agreement indicates that trading in goods and products, whether real or virtual, and trading in virtual currencies involves significant risk. Prices can change on any day. Due to such price fluctuations, the client can increase or lose the value of assets at any time. Any currency may be subject to significant fluctuations in value and even depreciate completely. There is a serious risk that a loss will occur as a result of buying, selling, or trading anything in the market.

Bitcoin trading also carries special risks not associated with official currency or commodities in the marketplace. Unlike most currencies backed by governments or other legal entities, or commodities such as gold or silver, bitcoin is unique and secured by technology and trust. There is no central bank to take corrective action to protect the value of bitcoins in a crisis or to issue more currency.

Since the platform trades derivatives, there is also additional counterparty risk. In extreme market conditions, Deribit may decide to partially or completely close winning positions in order to be able to close losing ones. Derivatives are settled every day in 24-hour sessions. If bankruptcies during the session deplete the insurance fund, any further losses will be covered by the traders’ profits: the costs will be divided proportionally among all traders at the expense of their profits earned on the platform. It is worth noting that the company did not allow the insurance fund to be depleted in March 2020 at the expense of the infusion of its funds. In this case, all traders who won during the session will be taxed a percentage of their income to cover the bankruptcy of other traders.

The company will provide market data to facilitate the user’s use of the site but makes no guarantee as to the timing, consistency, accuracy, or completeness of the market data. The user accepts the fact that Deribit is not responsible for any inaccuracies, errors, delays or omissions resulting from the user’s use of this market data.

Also, the organizer makes no guarantees that the site will run smoothly and without errors. Thus, the operation and availability of the platform may be unpredictable, and the platform itself may be unavailable from time to time. The company is not responsible for any such interference which prevents access to or use of the site and services.

Although there is no verification on the project as such, the organization reserves the right to check the personal data of the client at any time. However, the exchange has recently introduced a KYC system. Also, the organizer can impose certain trading restrictions, as long as the user does not provide additional personal information about himself and his transactions. By engaging in activity on the website, the customer agrees to assist in this process and will provide documents and information that the organizer may require.

The Company has the right to restrict the trading activity of any account if it deems it necessary due to suspicion of any trading activity that violates any of the rules specified or implied in these terms. Such measures may result in the cancellation of trades. Deribit shall not be liable for any losses incurred due to restriction of trading, cancellation, or early closure of trades due to an alleged violation of these terms and conditions.

During the investigation of actions in the account, no transactions, deposits, or withdrawals are allowed. At the end of this investigation, the company has the right to close the account without any further explanation. If the organizer decides to close the account, the user will be notified seven days in advance. Thus, the client will have 7 days to close the remaining positions. If he does not close his positions after 7 days, Deribit will take immediate action to close the positions and return any remaining bitcoins to the specified address.

In no event shall the organization, its suppliers, or licensors be liable under any subject matter of this agreement for any contract, negligence, strict liability, or any other legal standard or principle of equity for:

• any special, incidental, or consequential damages;
• costs associated with the purchase or replacement of any goods and services;
• discontinuance of use, loss, or corruption of data;
• any amount over the fees paid by the client to Deribit under this agreement during the twelve months before the occurrence of the cause of action.

The Company shall not be liable for any failure or delay due to events beyond reason.

The organizer reserves the right to change, add, or delete parts of these terms and conditions at any time at its sole discretion. It is the customer’s responsibility to review the amended terms and conditions. If he/she continues to use the website, it means that you accept and agree to the changes and that all subsequent transactions made by you will be governed by the amended terms.

Customer Service at deribit.com

You can contact the support team via e-mail: [email protected]. There is also a separate section on the site, where the client can find answers to the most popular questions. You can also contact the exchange administration via social networks and Telegram channels:

• t.me/deribit.
• t.me/ru_deribit.
• t.me/Deribit_Spanish.
• t.me/ko_deribit.
• t.me/deribit_taiwan.
• t.me/cn_Deribit.

 

Is Deribit a Scam?

Deribit – cryptocurrency exchange, which appeared on the financial market in 2016. During this period, the project has not managed to gain wide popularity but has already gained its audience (How to Make Money on Cryptocurrency?). The website interface is presented in several languages, which indicates the exchange is working for the international market. The main office is located in the Netherlands, where the organization is regulated.

The service offers favorable trading conditions for users, providing access to futures and options trading. With up to 1:10 leverage for trading and up to a 100x limit for futures, as well as the option for margin trading, the platform caters to a variety of trading strategies. Although the interface may seem complex, even to experienced traders, it offers a range of features that can be beneficial for both beginners and experts.

Additionally, the company provides an opportunity for active traders to earn passive income through its affiliate program. A mobile application is also available for iOS and Android devices, ensuring constant access to the platform.

While some reviews online suggest that the platform has mixed reviews, it has been in operation since 2016 and has been successfully serving clients for over 8 years. After reviewing the platform’s features and operations, it is evident that Deribit is a legitimate and trustworthy platform.

 

Conclusion

While Deribit may not be as widely known, it’s steadily evolving and attracting an audience. The website is available in multiple languages, indicating its focus on the international financial market. Despite the company’s efforts, the website’s usability and comfort are still lacking. Users should carefully evaluate the trading risks and acquaint themselves with the terms of cooperation before registering. Currently, the platform is competitive but has room for enhancement. If you’ve engaged with the service, sharing your feedback on our website can contribute to an impartial rating of cryptocurrency exchanges.