Founding and History
Deribit was established in 2016 by John Jansen, a former options trader, and his development team in the Netherlands. The platform was conceived as a professional tool for trading bitcoin futures and options, targeting both retail and institutional investors. Deribit derived its name from the words "Derivative" and "Bitcoin," reflecting its specialized focus. Initially, it operated under Dutch regulation but moved its operations to Panama in 2020 to provide more flexible services to its global customer base without the stringent EU regulations.

Products Covered
Deribit primarily offers derivatives trading, including futures and options related to Bitcoin and Ethereum. The platform is known for its:

• Bitcoin and Ethereum Futures: Allowing users to speculate on the future price of these cryptocurrencies.
• Options Trading: Deribit provides a comprehensive market for Bitcoin and Ethereum options, noted for its liquidity and variety of contract durations.
• Perpetual Swaps: These contracts mimic a margin-based spot market and are popular for their leverage options and lack of expiry date.

The platform supports high leverage, up to 100x for certain contracts, catering to experienced traders looking for high-risk and high-reward opportunities.

Impact and Contributions to the Industry
Deribit has significantly impacted the cryptocurrency derivatives market by pioneering several industry standards:

• Real-Time Risk Management: The platform uses a real-time risk management system that continuously monitors positions and automatically liquidates them if the margin falls short, enhancing market stability.
• Innovation in Volatility Products: Deribit introduced the Bitcoin Volatility Index (DVOL), which helps traders gauge the expected volatility in the Bitcoin market.
• Liquidity Provision: It has consistently been one of the most liquid markets for cryptocurrency options, attracting large volumes which contribute to more stable and efficient pricing.

Points of Interest

• Relocation to Panama: In January 2020, Deribit moved its operations from the Netherlands to Panama to avoid EU's stringent regulations and enhance their service offerings globally.
• Insurance Fund: To protect against unforeseen losses, Deribit maintains an insurance fund that has been crucial during instances of extreme market volatility.
• Block Trading: This feature, introduced to cater to institutional clients, allows for private negotiation and execution of large trades without impacting the open market.