How Coinbase plans to force-settle and instantly recreate institutional positions on Deribit within a 30-minute window
Coinbase expects to transfer Coinbase International Exchange institutional accounts, balances, and positions to Deribit on Sept. 9, a deliberate cutover that might cancel open orders, settle positions at market costs, and recreate them on Deribit. The change applies to International Exchange institutional purchasers, not the retail migration path for Coinbase app and web site customers.
Clients that don’t want to migrate ought to deal with Aug. 28 because the boundary. Coinbase’s institutional migration FAQ labels it the final day to decide out by closing positions and individually says a consumer that doesn’t want to migrate should shut its International Exchange account earlier than Aug. 28. Accounts left open might be deemed to have accepted the brand new phrases and migration.
Coinbase says all acknowledged dates, timelines and milestones stay estimates and might change. It expects new Deribit subaccounts to be out there in a read-only state on Aug. 31, giving establishments time to confirm entry, generate API keys, affirm portfolio mappings and request place or withdrawal limits.
On migration day, Coinbase expects about half-hour of downtime. All open International Exchange orders could be canceled. Positions would then be settled on the venue’s mark worth, with PnL crystallized and funding paid, earlier than the ensuing balances transfer to Deribit. Coinbase plans to recreate the positions on the similar settlement worth by matched migration trades.
Coinbase’s International Exchange trading rules say migrated positions stay open and enforceable, and that the method doesn’t represent an strange closure and reopening.
Coinbase International Exchange and Deribit will settle their markets independently earlier than cutover. If their costs differ, purchasers may even see quick unrealized PnL when Deribit reopens. Coinbase says the migration is not going to incur buying and selling or settlement charges.
Systems and financing should change
Existing International Exchange API keys is not going to work on Deribit, so purchasers should replace endpoints and credentials. Coinbase says legacy International Exchange APIs ought to stay accessible for historic commerce and order information for about 12 months, however that historical past is not going to seem in Deribit. Institutions that want data for reporting or tax functions are suggested to save them earlier than migration.
Existing margin loans is not going to transfer to Deribit and have to be closed earlier than cutover. Post-migration margin necessities will rely on the chosen Deribit mode and any customized institutional association. Custody and counterparty constructions additionally fluctuate: some purchasers will retain Coinbase Bermuda Limited as dealer and custodian, some will commerce straight with Deribit FZE whereas retaining Coinbase custody, and sure third-party-custody preparations will transfer to Deribit Panama.
Coinbase says the precise directions rely on the consumer’s account setup, entity, and jurisdiction, with account managers anticipated to present further steps the place required.
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