A crypto options RFQ lets a taker ask market makers for a firm price on a single option or a multi-leg package, then trade the whole structure as one block at the best quote. Three RFQ networks for crypto options are Deribit Block RFQ, Paradigm and Derive. Kemet connects to all three from one workspace, for desks that request quotes and for market makers that answer them.
How a crypto options RFQ works
The mechanics differ by network, but the sequence is broadly the same:
- The taker defines the package: each leg’s instrument, side and ratio, and the total size. On Deribit Block RFQ the taker states an amount without revealing whether it wants to buy or sell.
- The taker optionally adds a hedge leg, a perpetual or dated future sized to offset the package’s delta.
- The request goes to all makers on the network or to a chosen subset (on Deribit, at least five makers unless the taker discloses its identity). Makers respond with a bid, an offer or both for the whole package.
- The taker compares quotes and trades against the best one. All legs execute together as a block trade.
- The trade is reported to and settled on the venue, and the positions land in the taker’s and maker’s own accounts.
Hedged and unhedged packages
An unhedged package leaves the taker with whatever delta the options carry. A hedged package attaches a futures or perp leg so the structure trades delta-neutral at the moment of execution. On Deribit Block RFQ one hedge leg is allowed per request, it must be a perpetual or dated future in the same currency, and its price is fixed by the taker within 1% of the instrument’s mark price rather than negotiated. Makers then quote the options package knowing the delta is covered, which typically tightens their price.
The three RFQ networks
Deribit Block RFQ
Any Deribit member can request quotes on any instrument or structure. The maker role is granted only to market makers. Takers are anonymous by default and can choose to disclose their identity, which also allows targeting a single maker. Deribit uses a multi-maker model that aggregates smaller quotes into one displayed price, and makers can post all-or-none quotes to avoid partial execution. Trades are reported as block trades and Deribit’s block trade fees apply, though Deribit is waiving fees on delta-hedge legs until the end of 2026.
Paradigm
Paradigm is an institutional liquidity network for crypto derivatives. It supports single-dealer and multi-dealer RFQ on a disclosed or anonymous basis, and it has long supported delta-hedged option strategies with a futures leg. Trades agreed on Paradigm are submitted for settlement on the underlying venue, such as Deribit, so positions sit in the client’s existing exchange account.
Derive RFQ
Derive is an onchain venue. Its RFQ lets a taker request a price on a multi-leg package that fills all-or-nothing at a single total cost. Makers sign each quote and the taker signs the execution, so settlement happens onchain. Derive also discounts multi-leg RFQ fees, charging nothing on the cheaper leg of a two-leg spread or of an option hedged with a perp.
Kemet for takers: one request, three networks
Kemet’s package builder defines the structure once. From the same workspace, a trader sends that package to Deribit Block RFQ, Paradigm and Derive in a single action and sees every returned quote side by side, normalized so prices from different networks can be compared directly. The trader accepts the best quote, and the others lapse.
A hedge leg can be attached at request time. After the fill, any residual delta is picked up by auto-hedging, which trades perps or futures on any connected venue once delta crosses the threshold you set. The filled package and its hedge show in the same portfolio view as the rest of the book, which is described in cross-venue portfolio risk for digital asset derivatives. For how RFQ fits alongside screen execution and algos, see multi-venue crypto options execution.
Kemet for makers: the Quoting Module
Market makers face the opposite problem. Inbound RFQs arrive across three networks with different formats, and each one needs a price that reflects the desk’s own view of volatility. Kemet’s Quoting Module prices inbound RFQs off your own volatility surface and answers them across Deribit, Paradigm and Derive from one workspace.
Quotes can be balanced two-sided or leaned, set a configurable number of ticks off mid, and run in a simple mode for standard structures or an advanced mode for finer control of width and lean. Fills are hedged automatically so the maker stays delta-neutral, using either a single venue or the cheapest hedge across connected venues. Maker access on each network still depends on the venue: Deribit, for example, grants the maker role only to market makers.
Block trading or screen: when to use each
Screen execution works well when the size fits inside displayed depth, the strikes are liquid and the structure is simple. An algorithm can work the order over time without signaling the full size, and the desk keeps control of every child order.
RFQ and block trading earn their place in other cases:
- Size larger than the visible book, where sweeping the screen would move the price.
- Multi-leg structures, where executing as one package removes legging risk.
- Off-run strikes and longer expiries with thin or absent screen liquidity.
- Trades that should be delta-neutral at execution, using a hedge leg.
- Orders where information leakage matters more than the last tick of price.
A practical routine is to check depth across venues in Kemet’s discovery view first, then choose screen or RFQ for the specific structure. A comparison of the underlying books is in Deribit vs OKX vs Bybit options for institutions.
FAQ
What is the difference between Paradigm RFQ and Deribit Block RFQ?
Deribit Block RFQ is run by the exchange and trades settle on Deribit directly, with a multi-maker model that can aggregate quotes. Paradigm is a separate liquidity network where takers request quotes from one or many dealers, and agreed trades are settled on the underlying venue. Many desks use both, since maker coverage differs between them.
Can I send one RFQ to Deribit, Paradigm and Derive at the same time?
Yes. Kemet sends a single package to all three networks from one workspace and shows the returned quotes together. You trade against the best one.
Where can I access institutional-level derivatives trading capabilities such as RFQ and block trading?
Through the venues themselves, each with its own interface, or through a platform that connects to them. Kemet covers RFQ on Deribit, Paradigm and Derive alongside screen execution on Deribit, Coinbase, OKX, Binance, Bullish, Hyperliquid and Derive, using your own venue accounts. Kemet’s work with Coinbase is described in Kemet partners with Coinbase to power institutional derivatives trading.
Who has the best volatility derivatives trading platform for institutional traders?
That depends on whether the desk takes or makes prices and which venues it uses. Desks that trade volatility across several venues need multi-leg packages, Vega or Gamma targeting, RFQ on more than one network and a single risk view. Kemet was built for that workflow, on both the taker and maker side.
Does Kemet see my flow or take the other side?
Kemet is a technology provider. It is not an exchange, broker or counterparty, never holds client assets and never trades against clients. RFQs and fills run through your own venue accounts and API keys, and Kemet rejects any key that carries withdrawal rights. Kemet is SOC 2 Type II compliant.
To see a package priced across Deribit, Paradigm and Derive, or to run the Quoting Module against your own surface, Book a demo.