Quote from: LoyceV on Today at 08:01:59 AM

Quote from: DaveF on February 23, 2024, 12:19:15 PM

I was always under the impression that sites like this didn't even store user funds.
Don't know why but, I was thinking they were just using the APIs of other exchanges to make the trades and skimming a small % off the top to make their profit.

There were a few of them in the past that operated that way. Put together a pretty interface, no real KYC, and just take a small cut.

Now that you mention it: I also thought that's how they operate, especially since they have a fixed and dynamic fee rate.
But withdrawal fees of most exchanges are a problem for that business model. Unless they get a custom deal, most exchanges charge far more to withdraw than an instant exchanger can earn from small trades.
It would make sense to only handle large transactions through a CEX, and handle small ones by themselves. That way they'd only need $26k instead of $26M in their hot wallet.

Many exchanges have fixed and dynamic fees, I think this gives them the possibility to charge you more percentage during trade while protecting you from slight volatility that god knows whether happens or not.
By the way, if it's possible to create an exchange via API, then how do they deal with high risk deposits?
Let's say that:
A is an instant exchange
B is a big exchange that gives API to A

How does B deal with high risk deposits that comes from someone sending dirty coins to A instant exchange? Does B send a request to A to tell its user to submit KYC documents? Or how does it happen?

Seems, fixedfloat is live but some browsers warn me that fixedfloat is dangerous to visit:

Quote

Attackers on the site you're trying to visit might trick you into installing software or revealing things like your password, phone, or credit card number. Chrome strongly recommends going back to safety.

Karma exists!