> For the complete documentation index, see [llms.txt](https://docs.unitas.so/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.unitas.so/off-exchange-settlement.md). # Off Exchange Settlement ### Secured Asset Custody Unitas employs **Off-Exchange Settlement (OES)** providers to safeguard collateral while accessing centralized exchange liquidity for hedging strategies. Currently, Unitas works with two leading institutional custodians: [**Ceffu**](https://www.ceffu.com/) and [**Copper**](https://copper.co/). * Both are independent, non-US based custodians focused exclusively on digital asset custody and settlement. * Protocol assets are **never beneficially owned** or controlled by the OES providers; they remain fully attributable to Unitas users at all times. * Assets are held in segregated accounts and only deployed via pre-approved trading instructions to support Unitas’ delta-neutral strategies. *** ### Risk Management Unitas recognizes two primary risks when operating with OES providers: #### 1. Accessibility and Availability * Unitas depends on OES providers for timely **deposit, withdrawal, and delegation** of collateral to/from exchanges. * Any degradation in this process may temporarily slow hedging or settlement workflows. * Importantly, such issues **do not affect the collateral backing of USDu**, only the speed of mint/redeem operations. * Unitas actively monitors OES availability and maintains redundant connectivity across both Ceffu and Copper to minimize impact. #### 2. Settlement Performance in Exchange Failure * In case of an exchange default, Unitas relies on OES providers to facilitate the transfer of collateral and settle PnL without delay. * Leading custodians like Ceffu and Copper require exchanges to pre-post collateral with them, enabling efficient resolution under their rolling settlement cycles (typically 4–8 hours). * By maintaining hedges across multiple exchanges, Unitas reduces dependency on any single venue. *** ### Additional Benefits * **Liquidity Access**: OES providers allow Unitas to connect seamlessly with multiple CEX venues, ensuring deep orderbook liquidity without moving assets directly onto exchanges. * **Operational Efficiency**: With OES, mint/redeem flows for USDu and sUSDu are **on-demand and cost-efficient**, avoiding unnecessary blockchain transactions or gas costs. * **Counterparty Diversification**: Through custodians, Unitas can expand hedging access beyond centralized exchanges to OTC and institutional counterparties when needed, further mitigating risk. *** ### Why It Matters OES is the backbone of Unitas’s yield-bearing stablecoin design: * **USDu** stays fully collateralized off-exchange, ensuring user funds remain secure and transparent. * **sUSDu** holders capture the yield generated by a basket of delta-neutral strategies (funding rate arbitrage + exchange fee flows), while custody and settlement risks are minimized through trusted partners. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://docs.unitas.so/off-exchange-settlement.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.