Definitive Finance Launches Pre-Trade Compliance Screening in Partnership with Redefine…

Definitive Finance Launches Pre-Trade Compliance Screening in Partnership with Redefine Technologies

At Definitive, we are committed to bringing advanced tooling and sophistication to decentralized finance (DeFi). Today, we are excited to announce our latest enhancement — optional Pre-Trade Compliance Screening — powered by our new partnership with Redefine Technologies. This integration allows our clients to enhance onchain trading with an additional, optional layer of compliance, ensuring that all trades executed on the Definitive platform adhere to stringent AML (Anti-Money Laundering) and sanctions rules.

Redefine Technologies is a leader in DeFi-native compliance and security risk management, with backing from prominent names like Ribbit Capital, ParaFi, and Jump Capital. By integrating Redefine’s pre-transaction compliance risk assessment tool, DeFirewall, Redefine customers can now perform pre-trade compliance checks across onchain execution venues on Definitive’s trading platform, safeguarding them from potential risks before any trades are executed.

This partnership underscores our shared mission to bring advanced tooling with institutional-grade support to the DeFi space. As DeFi continues to grow and evolve, the need for robust compliance measures becomes increasingly vital. With Redefine’s cutting-edge technology, Definitive is setting a new standard for secure and compliant trading in the decentralized ecosystem.

The Benefits of Redefine’s Screening Solution

Redefine offers a comprehensive compliance solution tailored for organizations that must adhere to rigorous AML and sanctions standards. For our clients who are also customers of Redefine’s compliance product, this partnership unlocks the ability to conduct pre-trade compliance checks seamlessly within the Definitive platform.

Key Features of Redefine’s Compliance Screening:

• Smart Contract Screening: Ensures that all relevant roles — such as owners, admins, and deployers — are scrutinized.
• Liquidity Pool Screening: Extends compliance checks to every entity providing liquidity within a liquidity pool, mitigating risks of exposure to tainted assets or sanctioned entities.
• Lending/Borrowing Protocol Screening: Covers all participants involved in lending and borrowing.
• Transaction Screening: Delivers comprehensive contextual checks based on transaction type, covering liquidity pools, lending/borrowing protocols, token contracts, and more.

Redefine enables clients to set pre-trade compliance criteria based on customized risk thresholds:

• Ownership (Direct) Risk: Configure risk levels associated with the entity owning a specific token or contract address.
• Counterparty Risk: Set risk thresholds based on time frame, exposure percentage, and USD value transfers.
• Detailed Liquidity Pool Analysis: Set AML exposure thresholds for liquidity providers in a pool. Receive alerts if combined AML exposure exceeds the set threshold.

Redefine’s screening is backed by a proprietary database of contract and wallet addresses that have been flagged for suspicious activity by Redefine’s leading-edge technology. This database includes over 1.3 million contract addresses and 550K+ wallet addresses, and is dynamically updated daily. This expansive coverage, combined with leading third-party sources like the OFAC Sanctions list, ensures that your trades are thoroughly vetted against up-to-date information.

How It Works: Enhancing Safety in Onchain Trading

Getting started with Pre-Trade Compliance on Definitive is straightforward:

1. Contact Definitive: Reach out to our team at [email protected] to facilitate a custom compliance integration with Redefine.
2. Customize Risk Thresholds: Since Redefine’s solution is customized to each client’s specific needs and risk tolerance, a direct engagement with Redefine is necessary to set up tolerance thresholds and pass/fail criteria for each client’s pre-trade compliance checks.
3. Activate Compliance Screening: Once the Redefine compliance product is in place, Definitive will activate it on our trading platform. From that point on, trades will only be executed if they pass the Redefine pre-trade check, providing you with peace of mind that your trades are fully compliant.

1. Post-Trade Reporting on Definitive will confirm the results of the Redefine pre-compliance check, and clients can also export detailed compliance records directly from Redefine’s compliance tool for their own recordkeeping or audits.

Technical Specifications

Definitive’s platform has been designed to integrate seamlessly with Redefine’s Compliance Screening API.

• Before processing any order, Definitive’s system sends a transaction payload — containing details on the assets being swapped, amounts, and pools — to the Redefine Compliance Screening API.
• Redefine’s system simulates and analyzes the transaction payload and returns risk insights and their associated severities. (See potential Redefine responses here.)
• If Definitive receives a NO_ISSUES response from the Redefine API, the system proceeds to execute the trade.
• If Definitive receives no response or a response indicating risk, the trade is not executed and is automatically cancelled.
• Definitive stores Redefine responses in our system, providing proof that the API was called in case of future audit.

Unlock New Levels of Security and Compliance with Definitive

Definitive’s partnership with Redefine Technologies marks a significant advancement in the DeFi space. By offering optional pre-trade compliance screening, we are providing our clients with a powerful tool to manage risk and ensure that their trading activities align with regulatory standards. This feature, combined with our industry-leading execution capabilities and post-trade reporting, makes Definitive the go-to platform for sophisticated DeFi trading.

Visit us at www.definitive.fi or reach out to [email protected] to learn more and schedule a demo.

Definitive is the leading institutional DeFi platform for advanced onchain trade execution and automated DeFi yield strategies.

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Disclosures:

This content is intended only for sophisticated investors; it is for informational purposes only and does not constitute the provision of investment advice. Client assumes full responsibility for its trading activity and should consult its advisors for its specific situation. Definitive is not registered as an investment advisor and Definitive assumes no liability, obligation, or responsibility for client decisions regarding the use of its trading platform and other products. Please see our Terms of Service for additional details.