Frequently asked questions


What is VelvetFormula?

VelvetFormula is institutional level platform to provide liquidity for crypto exchanges and best execution services for digital asset managers.

Is VelvetFormula an Exchange?

No. VelvetFormula is helping Exchanges to build and manage solid order books. Connect to multiple trading venues, including our own liquidity pool and as a result increase liquidity on particular crypto exchange.

Is Market Making legal?

Yes. Market Making has been around for many years in the classic financial markets. Most recognized stocks like Facebook or Tesla were traded by market makers in the beginning. There is no legislation that requires licence for liquidity provision services or somehow prohibits it. We are Portuguese company and comply with EU legislation.

Does VelvetFormula employ any Proprietary Trading on it’s Platform?

No. We do not employ any Proprietary Trading on our platform.

For whom VelvetFormula is Most Effective?

A sophisticated financial holding or organization looking for better liquidity on their cryptocurrency exchange

  • An institution which expect a high level of trade execution and compliance

Does VelvetFormula have any AML/KYC protocol?

Yes. According with regulations, we will identify every client and go through onboarding process.

Can you identify clients or share performance?

VelvetFormula was established back in 2013 and we have experience riding all ups and downs of the crypto market. The contract we sign with our clients is protected with NDA that prevents us from disclosing any specific information or price performance. However we are here to address your concerns and share our rich experience insights.

Does VelvetFormula operate own funds to provide liquidity?

Over time we became confident that the most efficient way is when exchanges use their user's deposits to improve liquidity on their trading platform. Thus we can make sure all price change risks are under control and cost of our service is competitive. While funds are under full control of a client. Nontheless we have an option for clients with legal restrictions — in that case we may use our own funds, however this is an additional service and comes with separate pricing.

What is the price for your services?

Our price depends on the amount of complexity and time VelvetFormula needs to put into each specific project. This approach allows us to tailor our pricing to specific client’s needs.

How do I get connected?

Request access to VelvetFormula Liquidity by filling out this form

Want to know more?

Request a demo with your dedicated personal manager.

Or fill in free contact form below

*We will enter in contact as soon as possible

Misha Alefirenko

Founder and CEO