Pre-Trade Compliance

Definitive offers Pre-Trade AML & Risk Screening, Powered by Redefine Technologies

At Definitive, we are committed to bringing advanced tooling and sophistication to DeFi. Our integration with Redefine Technologies' DeFirewall compliance tool allows our clients to ensure trades executed on the Definitive platform adhere to AML (Anti-Money Laundering) and DeFi compliance best practices.

With the integration of Redefine Technologies’ DeFirewall, Definitive empowers traders to optionally apply pre-trade AML & risk screening to onchain trading without sacrificing speed.

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 [e-mail] 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.

   
4. 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.

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 proprietary technology. This database is dynamically updated daily and also includes leading third-party sources like the OFAC Sanctions list to ensure current and thorough coverage.

For more information about the pre-trade compliance add-on, please contact [e-mail]