Introduction
Deferred Settlement Limits (DSLs) allow approved OTC customers to execute certain spot trades on Uphold without having to pre-fund their account.
A DSL sets the maximum notional value of trades you can carry out under this arrangement. Instead of paying upfront, you agree to settle the trade later - typically on a T+1 business day basis. This provides flexibility for managing liquidity, while ensuring that Uphold retains control over risk exposure.
Not all assets qualify for deferred settlement. You may buy any Tier 3 asset, but “sells” are limited to BTC, ETH, SOL, XRP, USDC, USDT, EUROC, USD, EUR and GBP (with supported assets subject to change).
To use DSL, you must maintain a minimum fiat-equivalent balance in approved assets, as specified in your agreement - typically 25% of the facility. Proceeds from trades remain restricted until settlement, and Uphold may block withdrawals up to your DSL exposure.
When trading, any existing balance being sold is used before the DSL facility is applied, meaning the deferred limit only covers the portion of the trade that exceeds your available balance.
If you fail to meet the settlement deadline, Uphold reserves the right to liquidate assets in your account to cover obligations, and you remain responsible for any shortfall. DSLs can be adjusted or revoked at Uphold’s discretion.
FAQs
1. What is a Deferred Settlement Limit (DSL)?
A DSL sets the maximum notional value of spot trades you can execute without pre-funding your account. It’s determined solely by Uphold and may change at any time.
2. How does Deferred Settlement work?
You can accept a quote to buy or sell approved assets without holding the required funds upfront, subject to the terms of your DSL agreement. Instead, you settle the trade later by the specified deadline.
3. Which assets can I trade using Deferred Settlement?
Not all assets qualify for deferred settlement. You may buy any Tier 3 asset, but “sells” are limited to BTC, ETH, SOL, XRP, USDC, USDT, EUROC, USD, EUR and GBP (with supported assets subject to change).
4. What is the Minimum Balance requirement?
To use Deferred Settlement, unless otherwise approved, you must maintain a fiat-equivalent minimum balance in approved assets (e.g., USD, GBP, EUR, USDC, USDT, USBC and RLUSD). This amount is specified in your agreement (Schedule A).
5. When do I need to settle my trades?
T+1 Business Day.
6. Can I withdraw my trade proceeds before settlement?
No. Trade proceeds are restricted until the trade is settled. Uphold may block withdrawals up to the value of your DSL exposure.
7. What happens if I miss the settlement deadline?
Uphold may liquidate assets in your account to cover the obligation. This includes converting assets into the required currency, at their discretion. You are liable for any shortfall.
8. Can my DSL be changed or revoked?
Yes. Uphold can modify or revoke your DSL at any time.
9. Do I need to meet any eligibility criteria?
Eligibility for DSL facilities is limited to select OTC customers, and approval is solely at the discretion of Uphold’s Institutional and Risk teams. Access is subject to credit checks and may be modified or revoked at any time.
10. What happens if Deferred Settlement Terms are terminated?
Your obligation to settle outstanding trades survives termination. Once your obligations are fully met, any related liens on your assets are released.