Money Movement

Overview

For Digital Assets, the Partner maintains a cash wallet balance and is responsible for calculating the customer's buying power. Cash is NOT held in the customer accounts, but in a Partner fiat omnibus account. Cash then moves from/to the omnibus account to the customer account at the time of buy/sell trades. As a result, a customer's account will always show 0 cash balance. Digital Assets however, are held in customer accounts.

How it works

Money Movement Considerations
The nature of the digital asset markets is 24/7, with the added requirement that trades may not use borrowed funds to clear/settle. Combined with the additional requirement that DriveDigital maintains fully disclosed customer accounts, the flow of funds subsequently described is designed to minimize trading disruptions while satisfying requirements.

Trades must be prefunded via the omnibus account. A minimum prefunding level is established on a per Partner basis by analyzing their needs. Balances must maintain a percentage level at all times to ensue that customer orders are successfully executed. Partners will be informed if balances fall to 50% and 30% of minimum levels. The prefunded amount is on a per day basis so the Partner may choose to fund more than the required balance for situations where traditional payment rails aren't available (ie. weekends, holidays). Should the prefund amount be depleted, DriveDigital will halt buying activity.

As customers execute buy side trades, funds will be allocated to the customer's fully disclosed account to settle the trade. Proceeds from sell side trades will similarly be swept into the partner omnibus house account and made available for withdrawal by the partner.

Customer trades are settled in real time due to the prefunded aspect of the offering. This provides customers with an instant trading experience.

Digital Asset Movement Considerations
Currently, digital assets such as BTC and ETH are not available for deposit/withdrawal/transfers. All digital assets are custodied within DriveDigital's ecosystem.

Withdrawals

When initiating a withdrawal, the Partner needs to inform DriveDigital where the money is being transferred to and what the total amount is. All withdrawals will come out of the master funding account.