Sub-Accounts, in the context of institutional crypto exchanges and trading platforms, are segregated accounts linked to a primary master account, enabling a single institutional client to manage distinct trading strategies, allocate capital to different teams, or separate funds for various purposes. They provide organizational structure and granular control over digital assets.
Mechanism
The mechanism involves the platform’s internal ledger system creating virtual partitions under a main client identifier, each with its own unique identifier, balance, and trading permissions. Funds can be transferred between sub-accounts and the master account, allowing for independent position keeping, risk monitoring, and access controls for specific trading mandates or institutional options trading strategies.
Methodology
The strategic methodology leverages sub-accounts to optimize operational efficiency, enhance risk isolation, and improve auditability for large institutional crypto investors. By segmenting capital and activity, institutions can implement diverse smart trading algorithms, participate in multiple RFQ crypto pools, and manage compliance requirements more effectively without needing separate primary accounts for each function.
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