- Customers can use crypto assets to achieve long or short exposure to generate returns, manage risk
- Being based outside the US doesn’t help a platform evade US government intervention
Gemini crypto exchange is launching a crypto derivatives platform outside the US called the Gemini Foundation. Their first derivatives contract, a BTC perpetual, will be denominated in Gemini dollars (GUSD).
They will launch an ETH/GUSD perpetual contract soon thereafter, the exchange wrote on their blog. The Foundation will keep expanding its derivatives offering in the coming months.
Long and short exposure
The Gemini Foundation’s eligible users will be able to use their crypto assets to achieve long or short exposure to crypto in order to generate returns, manage risk, etc. Eligible clients will be able to trade derivatives as well as spot products and use a trusted, secure platform to implement all of their trading strategies.
The US and other restricted countries
The Gemini Foundation will not be available to users outside Argentina, Bahamas, Bermuda, Singapore, Hong Kong, India, British Virgin Islands, Bhutan, Brazil, El Salvador, Guernsey, Israel, Cayman Islands, Chile, Egypt, Jersey, New Zealand, Nigeria, Saint Lucia, Saint Vincent & Grenadine, South Africa, Panama, Peru, Philippines, South Korea, Switzerland, Uruguay, Vietnam, Thailand, and Turkey.
Clients in the US are a notable exception. The main reason the exchange decided to set up a platform outside the US is the lack of regulatory clarity in the country. Being based outside the US doesn’t necessary help a platform evade US government intervention.
Account funding, profit, loss, and fees in GUSD
Eligible customers will be able to convert USD and USDC into GUSD on a 1:1 basis, and vice versa, in order to fund their Gemini Foundation account at no extra cost.
All perpetual funding payments, unrealized and realized profit and loss, and fees will be in GUSD.
The exchange will set the default leverage to 20x. The maximum possible leverage is 100x.
Gemini Foundation is expected to be trusted and capital-efficient. It will combine reliable trading tools with a deeply satisfying user experience for novices and professional traders alike.
