Differentiate between a “Title Transfer” CSA and a “Security Interest” CSA.
A Title Transfer CSA legally transfers the ownership (title) of the collateral from the pledgor to the secured party. The secured party can then re-use (rehypothecate) the collateral.
A Security Interest CSA does not transfer title; the pledgor retains ownership, and the secured party receives a security interest (lien) over the collateral, which limits the secured party's ability to re-use it.
Glossar
Rapid Fund Transfer
Timeliness ⎊ The core value proposition of this transfer mechanism is the near-real-time availability of funds for margin or collateral requirements.
Secure Data Transfer
Protocol ⎊ Secure data transfer refers to the use of cryptographic protocols and secure communication channels to protect information during transmission between systems.
Transfer Control Mechanisms
Mechanism ⎊ Transfer Control Mechanisms are the set of rules, often cryptographic or coded into smart contracts, that govern the movement of digital assets between addresses or accounts.
Position Transfer Logistics
Transfer ⎊ Position transfer logistics define the specific steps required to migrate an open derivatives position from one exchange to another.
Institutional Risk Transfer
Transfer ⎊ Institutional risk transfer refers to the strategic process by which financial institutions shift specific risks from their balance sheets to other market participants.
Instant Transfer Mechanism
Mechanism ⎊ An instant transfer mechanism facilitates the near-immediate movement of assets between parties on a blockchain or layer-2 solution.
Guaranteeing Physical Transfer
Delivery ⎊ specifies the mechanism ensuring the actual transfer of the underlying cryptocurrency upon the exercise of a derivative contract, contrasting with cash-settled instruments.
Timely Asset Transfer
Transfer ⎊ The concept of Timely Asset Transfer, within cryptocurrency, options, and derivatives markets, denotes the expedited and secure movement of digital assets or contractual rights, critically dependent on precise timing to capitalize on fleeting arbitrage opportunities or mitigate immediate risk.
Transfer of Ownership
Title ⎊ The Transfer of Ownership in digital assets represents the definitive change in legal and cryptographic title from one entity to another, typically recorded on the base layer.
Call Value Transfer
Mechanism ⎊ Call Value Transfer describes the process where a smart contract forwards a specified amount of the native blockchain currency alongside an external function invocation.