FTX is a cryptocurrency derivatives exchange that opened in April 2019 and offers futures, leveraged tokens, over-the-counter (OTC) trading, and binary options on individual and baskets of cryptoassets. The team behind FTX is made up of some of the most successful crypto traders in recent years, who chose to build their own platform after encountering challenges with most mainstream crypto futures exchanges. Clawback protection, a centralised collateral pool, and universal stablecoin settlement are among the characteristics that FTX believes set it apart. In terms of clawback prevention, socialised losses have claimed a large amount of consumer funds on other derivative exchanges. A three-tiered liquidation methodology is used by FTX to reduce this. The collateral on existing crypto futures exchanges is scattered among many token wallets, which makes it difficult for traders to liquidate bets. FTX derivatives, on the other hand, are stablecoin-settled and require only one universal margin wallet.