Off-exchange settlement
Introduction
At Aegis, we have implemented an off-exchange settlement model to ensure that user funds are protected at all times. By partnering with premier custodians, we eliminate the risks associated with centralized exchanges while maintaining seamless transaction efficiency.
What is Off-Exchange Settlement?
Off-exchange settlement refers to the practice of storing digital assets with a trusted custodian rather than keeping them on centralized exchanges. This approach enhances security by minimizing exposure to potential exchange failures, hacks, or liquidity crises.
Why We Do Not Store Funds on Exchanges
Traditional centralized exchanges, while convenient, come with inherent risks such as:
Exchange insolvency: If an exchange becomes insolvent, user funds may be at risk.
Security breaches: Exchanges are frequent targets of cyber-attacks.
Custodial risk: Exchanges act as custodians, which means users do not have direct control over their assets.
To mitigate these risks, Aegis does not store user funds on exchanges. Instead, we rely on highly secure custodian solutions to manage and safeguard assets.
Our Custodian Partners
To ensure the highest level of security, we collaborate with renowned custodians that specialize in institutional-grade asset protection. Our partners include:
Copper: A premier custodian offering multi-party computation (MPC) security for institutional investors.
By leveraging these custodian, we ensure that all funds remain off-exchange, protected in secure vaults, and are only deployed when required for transactions.
How Off-Exchange Settlement Works
User deposits assets: Funds are securely stored in custodian vaults rather than on an exchange.
Trading execution: When a transaction is required, assets are temporarily allocated for execution through our proprietary settlement layer.
Post-trade settlement: Once the trade is completed, assets are returned to custodian storage, ensuring they remain secure at all times.
This off-exchange model enhances security while still allowing efficient and frictionless transactions for users.
Benefits of Off-Exchange Settlement
Maximum Security: Funds are never exposed to exchange-related risks.
Regulatory Compliance: Custodians follow strict compliance and regulatory standards.
Transparency & Control: Users have full visibility into fund management without relying on an exchange's solvency.
Institutional-Grade Protection: Assets are safeguarded by battle-tested security infrastructure.
At Aegis, security and transparency are at the core of our mission. By utilizing off-exchange settlement with industry-leading custodians, we eliminate the vulnerabilities associated with centralized exchanges while ensuring users' funds remain secure at all times.
With Fireblocks, Copper, and CEFFU safeguarding your assets, you can trust Aegis to provide the most secure and efficient experience in digital asset management.
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