At least one decentralised finance firm was able to recall loans made to Alameda Research before it collapsed thanks to bespoke clauses contained in its derivatives contracts with the failed crypto trading firm.
Cega.fi, a startup exotic structured products protocol, generates yield by lending customer deposits to crypto market-makers and selling a variety of topside and downside options linked to crypto assets. The firm has $43.6 million in assets under management and had lent around a third of this to Alameda, the trading affiliate of the now-defunct crypto exchange FTX.
Unusually among Defi players, Cega’s transactions are covered by International Swaps and Derivatives Association documentation. Even more unusually, its Isda documents with Alameda had an early termination clause that allowed Cega to recall the loans plus accrued interest if FTX’s native cryptocurrency token, called…
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