BlockFi takes principal risk on all transactions, meaning we hedge transactions by buying or selling assets directly. This makes us different than exchanges with an order book in which client orders are matched against each other. Unlike an exchange, BlockFi acts as principal for all transactions meaning we, and not another BlockFi client or other market participant, take the other side of your trade. BlockFi displays a price we are willing to buy or sell at, taking on the primary risk of price fluctuations, generally for 60 seconds.
To manage this principal risk, the prices BlockFi offers to our clients for buying and selling digital assets may vary, on average, + / - 1% relative to an asset's spot index price. Our offered price depends on a number of factors, including, but not limited to, the prevailing market conditions, and is subject to change. Overall, BlockFi aims to always be a cost effective alternative for our clients.
For further information, please see our Terms of Service.