There are several ways to arrange and execute block trades on Deribit:
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Deribit Block RFQs (this is the latest and most advanced interface)
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Third-party solutions
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API (available for both the older block trades and block RFQs)
Deribit Block RFQs is the latest interface for sending block trade RFQs to multiple market makers at once. It is all done from within the Deribit platform. For most UI traders, this will be the superior method to execute block trades, and it is also available via the API.
This interface can be found on the Deribit platform here.
More information on this feature can be found in the Deribit Block RFQ section.
Deribit works with several partners that provide traders with an interface for organising and trading block trades.
A block trade is a trade agreed privately between two parties. The trade is executed in the account of each party at the agreed size and price, without touching the public order books.
Table 3. Block trade partners
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Partner |
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Telegram contact |
|---|---|---|
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@jeffmighty785 |
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@hansen_rj |
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Asia: @sohansen1 @CoryLow Europe: @Jeremy_Paradigm @Jamescumins |
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@anchalsynoption |
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@spluschris |
Each of these partners offer users an interface to arrange and execute block trades, however the trades are matched on Deribit. Some partners also offer block trades that match on other exchanges.
For any questions regarding these partners, we encourage you to reach out to them directly for support on their platforms.
Deribit has own Telegram Quote Request Group. The goal of the Telegram group is to facilitate simple quote/price requests should the screen size not be sufficient. There is a 25 BTC or 250 ETH minimum size. Before the more modern user interfaces existed for block trades, this was the main chat room for organising block trades. However, despite still being open for the time being, most traders would now arrange and execute block trades via user interface, for example the Deribit Block RFQ interface.
To execute a Block Trade head to the Block Trades section. Each block trade involves two parties. The first party creates the Block Trade and provides the trade code to the second party. The second party then enters the code and confirms acceptance of the Block trade.
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Select an instrument and provide all required parameters (Quantity, Price, Side)
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Such instrument will be added to Current Block Trade
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Select your role for the Block Trade (Maker/Taker)
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Create Block Trade
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Copy Block Trade Code and share it to the second party. The Block Trade code is active for 40 seconds and will be invalidated afterwards.
To execute a Block Trade using API, it involves two parties.
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The initial party initiates the Block Trade by calling /private/verify_block_trade to generate a block trade signature based on provided parameters. As a response, system returns a
signaturewhich must be shared with the second party. -
After receiving the signature, the second party is required to call /private/execute_block_trade with the same parameters as first party in /private/verify_block_trade (only role field should be set appropriately) and provide the received signature in
counterparty_signature.
After the call, the block trade is executed.
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To use the block trade approval feature, an additional API key setting feature called
enabled_features: block_trade_approvalsis required. This key has to be given to the partner who performs the trades on behalf of the user. If the user wants to approve the trade, he has to approve it from different API key with doesn’t have this feature enabled. -
When a trade is executed by a Registered Partner on behalf of any of the two clients (Client A and Client B) multiple things happen to clients with block trade approval enabled:
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Timer of 5 minutes starts. If those 5 minutes pass, without required approvals the block trade will be rejected
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An email with a link pointing to a block trade approval window is sent
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An announcement about pending approval is displayed on top of their screen
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An event is transmitted on a block_trade_confirmations channel informing about a new pending trade
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A pop-up window emerges in the user interface. This window displays the structure of the trade that the partner intends to execute, providing options to ‘Approve' or 'Reject'. If any of the clients rejects the block trade, the window won’t show up again.
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When a client is logged in through a subaccount, they will only see the popup associated with that particular subaccount. If the client is logged via the main account (which allows visibility of all main and subsidiary accounts on the Subaccount page), then they will be presented with popups for any of the accounts under that main account.
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If client A is trading vs client B who is using the normal block trade UI, then trade would go through once client A accepts the trade in popup (if client B created block) or once client A accepts the trade in popup and client B accepts signature in Block API/Block UI (if the block was created by the broker)
When all users who are required to give approvals have approved the block trade, Deribit proceeds to execute it automatically.
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To use a block trade approval feature additional API key setting feature called:
enabled_features: block_trade_approvalsis required. This key has to be given to broker/registred partner who performs the trades on behalf of the user for the feature to be active. If the user wants to approve the trade, he has to approve it from different API key with doesn’t have this feature enabled. -
Client A calls /private/verify_block_trade by providing trade details, timestamp, nonce and role. As a response, system returns a signature which must be shared with the Client B. Since then a countdown of 5 minutes starts to execute and approve the block trade.
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Client B calls /private/execute_block_trade with the same trade details, timestamp, nonce and signature received from Client A. The role has to be different(maker/taker). If any of the clients has approvals enabled the block trade receives pending status instead of the usual execution.
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Clients can use private/get_pending_block_trades endpoint and block_trade_confirmations channel to monitor their pending confirmations.
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To approve a block trade private/approve_block_trade can be used. private/reject_block_trade is used to reject. Timestamp, nonce and role are required to select a block trade. This endpoint must be called using an API key that does not have the block trade approval feature enabled.
When all users who are required to give approvals have approved the block trade, Deribit proceeds to execute it automatically.