1. Deribit Support
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Investor classification

  • Updated

In order to determine whether we can onboard our clients onto our regulated exchange in Dubai or onto Deribit Panama, which is a broker that executes orders on Deribit Dubai, we need to classify our clients.

There are three types of Investor Classifications:

  • Institutional Investor

  • Qualified Investor

  • Retail Investor

Qualified Investors and Institutional Investors can be directly onboarded onto Deribit FZE, the Dubai exchange.

Retail Investors are directly onboarded onto Deribit Panama.

Investor classification

Details

Institutional Investor

An Institutional Investor means:

  1. Any entity regulated by a competent financial services regulator in the jurisdiction in which it is located;

  2. Any Virtual Assets Service Provider;

  3. Any government with relevant knowledge in respect of trading derivative contracts, demonstrated by providing documentation that reflects professional experience or product experience;

  4. Any institution which performs the functions of a central bank; or

  5. Any multilateral agency with relevant knowledge in respect of trading derivative contracts, demonstrated by providing documentation that reflects professional experience or product experience.

  6. Any legal entity that, based on the last annual accounts, certified by the CFO of the client or an external auditor, satisfies at least two of the following criteria:

    1. Balance sheet total of at least USD 20 million;*

    2. Net annual turnover of at least USD 40 million;**

    3. Own funds of at least USD 2 million.***

* Balance sheet total = total assets

** Net annual turnover = the revenue derived from the sale of products or provision of services falling within the company's ordinary activities, after deducting sales rebates, VAT, and other taxes directly linked to turnover (i.e. gross profit).

*** Own funds = funds of the company. Loans and credit facilities are excluded.

Qualified Investor - Legal entity

To be classified as a Qualified Investor as legal entity has to meet both of the following criteria:

  1. Maintain a cash holding or equivalent in stocks, virtual assets or other liquid assets of 500,000 United Arab Emirates Dirham (USD 137,000), supported by documentary proof of funds (e.g. bank statements, account statements, portfolio statements) that illustrate relevant assets have remained, and will remain, liquid for a reasonable period of time;

  2. Its directors and/or traders need to have relevant knowledge in respect of trading derivative contracts, demonstrated by providing documentation that reflects professional experience or product experience.

Qualified Investor - Individual

To be classified as a Qualified Investor as individual has to meet both of the following criteria:

  1. Maintain a cash holding or equivalent in stocks, virtual assets or other liquid assets of 500,000 United Arab Emirates Dirham (USD 137,000), supported by documentary proof of funds (e.g. bank statements, account statements, portfolio statements) that illustrate relevant assets have remained, and will remain, liquid for a reasonable period of time;

  2. Possess relevant knowledge in respect of trading derivative contracts, demonstrated by providing documentation that reflects professional experience or product experience.

Retail Investor

A Retail Investor is an individual or legal entity that is not a Qualified Investor or an Institutional Investor.