OTC PROVIDERS
Infrastructure for large transactions.
Kronex is designed to support independent financial providers offering liquidity, escrow and execution services inside the network economy.
01 · WHAT THIS PROVIDER DOES
What this provider does
Large orders often require different execution mechanisms from ordinary public markets.
02 · WHAT ORDERS IT RECEIVES
What orders it receives
Kronex plans to support OTC Providers for
- large asset conversions
- large compute agreements
- private RFQs
- institutional infrastructure contracts
- large hashpower orders
- negotiated execution
03 · HOW LAYERS COMBINE
How layers combine
Escrow and privacy layers can be combined with OTC execution.
- privacy mode
- escrow condition
- OTC execution
- settlement
Fig. 02 — one order, four composed operations
03 · REQUIREMENTSSpecification pending
Requirements
Indicative until specified. These are the categories an OTC provider is expected to satisfy, not the values it must meet.
- Minimum size
- The order size at which OTC execution applies.
- Counterparties
- Who a provider will negotiate with and under what disclosure.
- Settlement
- How a negotiated order settles on the network.
- Collateral
- What is staked against the terms a provider agrees.
Requirements will be published with the provider framework.
05 · HOW IT IS PAID
How it is paid
OTC execution fees are one of the protocol's fee sources. A provider is paid on the orders it executes, settled against the negotiated terms.
06 · HOW IT IS MEASURED
How it is measured
- execution quality
- order volume
- dispute history
- collateral
- response time
Applications can automatically choose providers according to their own requirements.
07 · RISKS AND OBLIGATIONSSpecification pending
Risks and obligations
A provider stakes collateral against terms negotiated off the public rail and is answerable for executing them. Terms not honoured expose the provider to economic penalties where appropriate.
The penalty mechanism is not designed.
- collateral at stake
- terms negotiated off the public rail
- penalties where appropriate
08 · ROADMAP DEPENDENCY
Roadmap dependency
Phase 5
Financial Provider Networkplanned
enable independent financial services inside the Kronex economy
- escrow providers
- market makers
- OTC providers
- liquidity routing
- provider collateral
- RFQ markets
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