Dear trader,

It has been an excruciating week in crypto space. We sincerely hope that all of you will weather the storm. Due to the recent events -including our platform hack on November 2- we have made essential exchange updates. Please also follow our main Twitter channel, and subscribe to our Telegram Notifications channel to stay up to date. It's also possible to receive notifications via email, you can subscribe to this additional option via our Insights page.

EXCHANGE UPDATES

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Adjustment in deposit/withdrawal procedure

Exchange Update

Deribit has adjusted the deposit/withdrawal procedure since our recent security incident to add an extra layer of security.

Deposits
Please do not send funds to your previous Deribit BTC, ETH, and USDC deposit addresses any longer. We require our users to create new deposit addresses for BTC, ETH and USDC from the Deribit front end and use those moving forward. SOL addresses do not need to be updated as they're already on Fireblocks, our new integrated setup.

Withdrawals
After each withdrawal, you will receive a confirmation email from us. Click on the link in this email to finalise the withdrawal process. The withdrawal is only completed after this extra security step. If the status on your withdrawal page shows 'unconfirmed', you still have to confirm via email. Nothing changed in this process but sometimes clients overlook this requirement. 

All withdrawals subsequently need a manual (read: human) confirmation by a Deribit administrator. After our manual confirmation, withdrawals will be processed. This means that withdrawals are not instant, but we aim to process most withdrawals within 60 minutes.

Deribit wallet holdings (BTC, ETH, SOL)

Exchange Update

To avoid any doubt or concerns we are happy to give transparency in our holdings.

We have many addresses, please find below an overview of the key ones we use. Our primary assets are BTC and ETH, (the list does not include addresses of third-party custodians like Copper, Sygnum (both offchain) and Cobo Loop). Check our wallet holdings overview. 

SOL inverse futures and options update

Exchange Update

There will be no new SOL options and futures expiries until further notice. This does not affect the potential of new strikes in existing expiries.

The below margin changes will impact only the initial margin and hence would not by itself trigger any liquidations. Changes were made November 9th at 22 UTC. SOL Initial Margin Factor are increased from 1.2 to 1.5 for PM users only. This does not affect the maintenance margin.

SOL inverse futures leverage are changed to 10x with no effect on the maintenance margin Initial Margin for SM user for perp and futures = 10% + (POS Size in SOL) * 0.0005%.

Maintenance Margin for SM user for perp and futures (no change) = 2% + (POS Size in SOL) * 0.0005% Note that we will keep 25x on SOL_USDC. No impact to linear future.

BTC and ETH Portfolio Margin change 

Exchange Update

BTC and ETH Portfolio Margin changed on Thursday 10th Nov at 12 UTC and consequent days Deribit will increase the Initial Margin Factor from 1.2 to 1.3 (does not affect maintenance margin and will not trigger liquidations).

Deribit will increase the risk matrix underlying price move from 15% to 16% (this will affect initial and maintenance margins) Each consequent day at 12 UTC, we will increase the price moves in the risk matrix until it is at 20%.

- 10 November 12 UTC from 15% to 16%

- 11 November 12 UTC from 16% to 17%

- 12 November 12 UTC from 17% to 18%

- 13 November 12 UTC from 18% to 19%

- 14 November 12 UTC from 19% to 20%

Volatility range up and down will not be adjusted
- The risk matrix for SOL will not be adjusted-

- The risk matrix can be found on the portfolio margin page
- The changes above will not impact standard margin clients

1 November incident report and next steps

Exchange Update

1 November just before midnight our hot wallet was compromised and a total value of USD 28m spread over BTC, ETH and USDC (quickly converted into ETH afterwards) were stolen. The compromised assets did not move until 5 November when the funds started moving to cryptocurrency mixer, Tornado Cash. Deribit has immediately confirmed the loss is covered by company reserves. Read the full incident report.

LATEST ARTICLES ON INSIGHTS

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Option Flows - Week 45, 2022

Option Flows

Tony Stewart (@PelionCap) is commenting on this week’s edition of Option Flows, about the volatility on the markets caused by Alameda and FTX.

Take a close look at his sharp analysis.

Desk Commentary – Week 42

Partner article 

Volatility returned with a vengeance as cryptocurrencies contemplated a market bereft of lynchpin FTX’s perpetual centrality. Find the view on the market from Genesis in their Desk Commentary.

Cumberland Vol Commentary – Week 45

Partner article

Our partner Cumberland is commenting on recent volatility and potential opportunities to take advantage of it. You can read the full article here.

Weekly Commentary – Week 45, 2022

Partner article

Crypto-assets implied volatility has spiked in response to the latest liquidity crisis. Fears of contagion to other crypto-assets, such as BTC and ETH, have resulted in a sharp increase in their put-call skew to the highest levels since June 2022. See the Weekly Commentary from BlockScholes.

FEATURED TRADING TOOLS

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Metrics

Useful charts and statistics relevant to the instruments to trade on Deribit.

Position Builder

Powerful tool that allows you to build portfolios and view profit/loss chart.

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