Derive exchange profile

Derive is an on-chain derivatives venue combining an off-chain order book and RFQ trading with Ethereum verification and collateral contracts. Its V3 launch on 7 October 2026 replaced Derive Chain. The launch notice says supported positions and balances moved to V3; new markets and integrations remain staged releases.[1]

DefiLlama’s 20 October snapshot reports approximately US$3.943 billion of options notional, US$77.4 million of options premiums and US$977.52 million of perpetual notional over 30 days. These are combined Derive figures spanning versions; only US$240.8 million of that perpetual total is labelled V3. Premium and underlying notional measure different quantities and must not be added as comparable trading turnover. None measures unique active customers or safety.[2]

Each subaccount selects one margin manager, which fixes its risk universe. Standard and Portfolio managers inside the same universe can accept the same instruments while requiring different margin. The live universe registry identifies eligible tokens, collateral credit, lending limits and the associated backstop. Opposing counterparties from different universes cannot match, including through RFQ or liquidation. Balances and risk therefore do not combine freely across the entire wallet.[5]

RFQ packages execute all legs together or none, helping avoid separate fills leaving an unintended options structure. The request can be directed to selected makers or opened to all. Merely requesting a quote moves no funds: the maker signs a price and the taker signs its execution. Quotes are checked again when submitted, so observing an earlier quote does not secure a fill. HTTP and WebSocket support the same authenticated workflow.[9]

The option cap excludes the base taker fee. For three ETH options in one taker order, with underlying US$2,500 and premium US$2 each, notional is US$7,500 and total premium US$6: the taker fee is 0.50 + min(2.25, 0.75) = US$1.25. One US$20,000 perpetual taker order filled once costs US$6.01. Both examples exclude builder charges, spreads, financing and transfers.[10]

RFQ applies the taker notional rate to both sides, with the base fee on the taker side. Multi-leg discounts depend on grouped option/perpetual legs, rather than simply counting transactions. Extra builder fees can apply.[10]

The account-information endpoint publishes each account’s fee information, discounts, maker/taker overrides and assigned limits. Its example response is a schema illustration, not an offer to every customer. Check the actual assigned schedule when an account has negotiated terms; the submitted maximum-fee bound can exceed the fee ultimately charged.[12]

A separately retained legacy institutional programme quotes 15 bps for regular spot activity and conditional discounts, unlike the V3 guide’s zero spot execution tariff. It requires participation approval and uses programme-specific epochs and reward pools. Those legacy prices and incentives should not be carried into a V3 cost estimate without account-level confirmation. Reward allocations also do not by themselves establish an immediately withdrawable cash balance.[11]

Funding compensates the other side of a perpetual position when its price differs from the underlying. It is distinct from borrowing interest and the execution fee. Derive marks perpetuals using spot plus a 30-minute average premium, capped within ±6% of spot; that marked value can differ from the last executed price shown on a chart.[4]

Negative USDC cash incurs utilization-based borrowing interest; positive cash receives interest after the universe’s Security Module share. The module normally takes 20%, rising to 100% when depleted. Lending liquidity is local to the universe. Heavy borrowing can prevent immediate USDC withdrawal even if the customer owns a positive balance; a high displayed yield is not a withdrawal guarantee. V3 also permits base-asset debt where the live asset has borrowing enabled and remaining capacity.[13]

Custom bridge routes cover assets without a native Ethereum representation, including HYPE, FXRP and wrapped SOL. The bridge quote has its own fee; LayerZero routes move whole millionths of a token, leaving finer remainders with the sender. SOL must be wrapped before the origin transfer. Testnet tokens and chain identifiers belong to a separate environment and are not valid substitutes for mainnet collateral.[16]

Forwarded withdrawals use an address registered for the recipient and destination. Published routes include HYPE/kHYPE to HyperEVM, cbBTC to Base, FXRP to Flare and wSOL/jitoSOL to Solana. Derive says it pays the forwarding bridge fee; the normal withdrawal charge remains. Sending an unsupported token to that address can leave it held pending manual recovery. For EVM forwarding, the destination must be the account owner’s same address.[17]

Internal spot transfers move collateral between subaccounts; they do not move derivative positions. Position transfers use a mutually signed RFQ. Direct API withdrawal quantities use the token’s native decimals, while SDK helpers accept human units. A quoted maximum fee in an API example is a user-set bound, not a universal transfer tariff.[17]

A wrong or unsupported manager can route an otherwise valid deposit into universe 0, the fallback holding account. It supports no trading or borrowing; collateral must be moved to an eligible trading subaccount. This recovery route does not apply to deposits below the minimum, which have different treatment. The public registry is the current source for supported collateral and manager IDs.[5]

V3 executes protocol logic off-chain and submits proofs to Ethereum; collateral contracts verify the resulting changes and process withdrawals. Batch state changes are published to Celestia for reconstruction. The launch description includes a timeout-based escape process under which another operator can continue settlement. These components introduce distinct dependencies: matching availability, proof production, Ethereum settlement and accessible state data.[1]

The Security Module is a universe-level pool that receives protocol revenue and absorbs defined liquidation losses. Its finite resources and socialization rules do not specify an individual insurance payout or protected deposit limit. Holding cash within the same affected universe can still expose that account to a loss allocation.[18]

Management fees accrue as an annual rate on NAV over elapsed time, regardless of gains. A single fee settlement is capped at 2.5% of NAV; uncollected excess is forfeited. Deposits and withdrawals settle accrued fees first, so the post-fee share price matters. Neither a quoted vault return nor a share balance is a fixed USDC redemption promise.[20]

A curator winds down by refusing new deposits, closing positions, processing redemptions and leaving last. It can force-redeem a nonrequesting holder at current mark-to-market value. The final burn permanently closes the vault; records remain accessible. Leaving a strategy is therefore a share-redemption process, distinct from cancelling a trading bot or withdrawing liquid account collateral.[22]

The V3 audit page says ZKSecurity reviewed core contracts and protocol and that critical findings were addressed. On 20 October it still promises the full report in two weeks and two further reports in coming weeks. That publisher statement establishes a claimed review and incomplete public report availability; it does not permit inspection of the promised reports or establish a comprehensive security guarantee.[26]

Application access excludes US persons; specified Australian, Canadian and Panamanian categories; and sanctioned persons or territories. UK access is limited to Article 19 investment professionals or Article 49 qualifying entities. Age and legal-capacity conditions apply; VPN circumvention is prohibited.[27]

V3 uses the owner’s Ethereum wallet or multisig directly, removing V2’s intermediary smart-contract wallet requirement. The migration guide explains that smart-contract owners delegate an EOA for off-chain signing. Its remaining “coming soon” migration language is superseded for supported balances and positions by the dated launch notice; it should not be used to infer that every legacy strategy or interface has migrated.[32]

Wallet key custody remains separate from support access. The reviewed V3 delegation pages explain expiration and permission changes but do not establish a service that reconstructs a lost owner private key.[23]

Cancel-on-disconnect must be enabled at account level and only affects eligible orders marked for market-maker protection and quotes submitted through the particular lost WebSocket connection. Unflagged orders remain. Trigger and algorithmic orders are never covered, even when flagged; they require explicit cancellation. Graceful server closure can activate the same mechanism. None of these cancellations closes a position or cancels instructions on another connection.[25]

Report suspected mistrades promptly, where possible within 60 minutes of execution and before expiry or settlement. Initial application withdrawal restrictions last at most five business days from imposition; extensions require specific written notice.[27]

Send disputes within 30 days of arising, including identity/contact details, wallet or subaccount, facts and remedy. Arbitration can start 30 days after company receipt if unresolved: UNCITRAL rules, Panama City seat, English. Panama law governs.[27]

The reviewed record endpoints provide transaction evidence, but a current V3 tax-ready statement or complete CSV-export workflow was not established. Account-data access and deletion requests are separate privacy rights, subject to applicable retention obligations; deleting interface data does not remove public blockchain transactions.[28]

The application terms do not establish a financial-authorisation finding. This profile records no positive licence permission.[27]

Terms bind users to Lyra Technologies Corp; the independently governed DAO operates the protocol.[27]

The privacy policy names the same company and publishes a George Town, KY1-9006 contact address. That address does not by itself verify incorporation or financial permissions. The contract’s Panama governing law likewise should not be converted into a corporate-registration finding.[28]

The official rebrand announcement is dated 28 August 2024. Derive and Lyra are therefore treated as one continuing exchange identity, not two separate venues. The announcement positioned the business around programmable derivatives and integration by traders, builders and institutions. Its historic ambitions are distinct from the current V3 products documented in this profile.[3]

The current website links the trading application, status and help resources while maintaining a separate legacy vault destination. A legacy strategy’s allocation, documents and withdrawal process must be identified individually; the brand rename does not make older vault economics identical to V3 permissionless vaults.[33]

Operator

Lyra Technologies Corp

Exchange model

Hybrid

Service scope

Orderbook and RFQ derivatives, spot, borrowing and strategy vaults.

Client types

Retail clients; Professional clients; Institutional clients

Pricing publication

Public pricing

Other names

Lyra; Lyra Finance

Pricing scope

V3 base execution schedule; account overrides and separate financing.

Funding scope

Crypto deposits and signed Ethereum or supported forwarded withdrawals.

Custody and asset handling

Ethereum collateral contracts; proofs, risk-universe backstops and loss allocation.

Client eligibility

Application restrictions depend on person, jurisdiction and professional category.

Support

Policy email, official help and formal dispute notice.

Authorisation and registration scope

No positive financial permission established.

Exchange metadata checked 20 Oct 2026Source 12Source 13Source 10Source 15Source 33Source 1Source 28Source 4Source 3Source 27

The V3 API exposes orders and risk information for externally built strategies. Session permissions determine the actual authority of a bot, team member or delegated tool. Automated RFQ execution still needs signed maker and taker instructions; the API is a mechanism for expressing trading decisions, rather than evidence of a first-party discretionary AI investment service.[24][9]

The account endpoint exposes limits and settings, including cancel-on-disconnect and recipient lists. Review them when changing an integration or trader. There is no basis in the reviewed V3 fee or account documentation to quote an inactivity charge; withdrawing assets, revoking delegated access and requesting account-data changes remain different operations.[12]