Crypto Trade Settlement

Overview

When a crypto trade occurs on the Cybrid platform there are numerous steps and associated timelines that occur behind the scenes. Crypto trades are not settled immediately, they are collected and batched twice a day during settlement windows. Settlement batches include trades for every customer on the Cybrid platfrom, across every partner. Cybrid cannot perform settlement for an individual trade out of band from our settlement window.

High Level Overview of Settlement Process

The following steps are involved in the process:

• A trade quote is obtained for a customer or bank on the platform
• A trade quote is executed via the trades endpoint and the trade enters a settling state if successful
• The settling trade is collected in the next batch settlement window
• Cybrid executes trade settlement with liquidity providers twice daily (outlined below)
  • Fiat or crypto is sent from Cybrid to liquidity providers
  • Fiat or crypto is received from liquidity providers to Cybrid
• Once Cybrid receives the trade settlement (fiat or crypto) account balances are updated

When is a trade settling?

A trade that is in the state settling will be part of our settlement process.

Funds associated with this trade will be aggregated in the assets trading account under platform_balance, and will not appear in the value platform_available.

When settlement for the trade has completed the trade will be in the state completed. The funds associated with the trade will then be aggregated in the assets trading account under both platform_balance and platform_available.

Settlement Timelines

Trades

Trade settlement is initiated multiple times a day at 9am, 11am, 1pm and 3pm Eastern on every weekday except bank holidays.

All unsettled trades are batched into a settlement at each of these time slots. Trade settlement takes between 30 minutes and one hour for stablecoins, e.g., USDC and USDT, and between one to two hours for cryptocurrency, e.g., BTC.

Any trade executed after the 3pm Eastern settlement will be settled on the next processing day in the 9am batch.

In exceptional circumstances, additional trade settlements can be executed, but only on processing days and not before 9am Eastern (prior to the wire window opening) or after 5pm Eastern (when the wire window closes).

Bitcoin Lightning Network

Bitcoin Lightning settlement is initiated with the 9am Eastern trade settlement.

What can impact settlement?

A variety of things can impact settlement timelines:

• Weekends and Bank Holidays
• Delays in banking infrastructure and FedWire wire transfers
• Delays from liquidity providers settling wires or releasing crypto assets
• Delays from liquidity providers settling crypto and releasing wires
• Crypto network congestion and blockchain confirmations
• Compliance screening policies and manual compliance review