Release Type: Informational – Optional action from platforms.
Summary
Zero Hash is enforcing Maximum and Minimum thresholds on our RFQ system. We have set our Maximum limit of 500,000 USD and a Minimum of 0.01 USD per quote. We have updated our error responses returned to Platforms if they are in breach of our Maximum or Minimum thresholds. If a Platform wishes to adjust this maximum, please email [email protected].
Action Required
Platforms must be prepared to handle the new status 400 error that is returned when a RFQ Maximum or Minimum has been breached.
Sample Response - Maximum limit breached
{
"errors": [
"unable to obtain quote, above maximum quote notional"
]
}
Release Type: Actionable – Platforms must share the configs to start using this feature.
Summary
It is possible to charge end customers fees to withdraw assets from their platforms to external wallets similar to traditional finance fees (wire fees, account closure fees, etc.). This is a separate configuration than the one used to manage custom spreads on liquidity quotes.
If enabled, a fee will be collected on every withdrawal execution and ledgered accordingly. The current feature works in NETTED (fixed sending amount) and ADDITIVE (fixed receiving amount) settings. Fee can be set in either a flat amount or spread (or both) per asset.
Action Required
To begin using this functionality, the following platform configurations must be set per ASSET with your Zero Hash team:
"withdrawal_spread_type": 'NETTED|ADDITIVE'
Netted deducts a fixed amount from the participant and any fees will be deducted from the quantity that is sent
Additive deducts the sending quantity in addition to any fees, so that the sending quantity is received by the destination wallet
"withdrawal_spread_fixed_fee": '0.000015'(This is defined in base currency and NOT in atomic units. So ETH and not WEI)
"withdrawal_spread_percentage_fee": '3'(This is in absolute % so here 3 means 3%)
"withdrawal_spread_platform_revenue_percentage": '60'(This is the revenue % based on agreement. In this scenario, the collected withdrawal fee account 60% to platform and 40% to ZH accounts)
Platforms using the Convert Withdraw product can now specify whether or not the network fee notional amount is included in the total notional amount or excluded. Examples:
Fee inclusive: A platform requests a quote by notional for an amount of 100 USD and the breakdown is (assuming a $2 network fee):
asset_cost_notional: $98
network_fee_notional: $2
total_notional: $100
Fee exclusive: A platform requests a quote by notional for an amount of 100 USD and the breakdown is (assuming a $2 network fee):
asset_cost_notional: $100
network_fee_notional: $2
total_notional: $102
Action required
There is a new optional Boolean query parameter called fee_inclusive that Platforms can use on the GET /convert_withdraw/rfq endpoint. A value of true means that the network fee is inclusive. A value of false or omitting this query parameter implies a fee exclusive-type call.
Actionable – If the platform uses non-documentary validation and has existing participants without required documents uploaded
Enhanced validation
Technical validation will be deployed such that any participant who has been verified using documentary verification must have a document uploaded to move to an approved status. See Summary below for additional details on the technical verification.
Please note that the technical logic now aligns with the existing Zero Hash compliance requirement. The compliance requirement is that when a customer is submitted to POST /participants/customers/new with an ID type that is not SSN, the underlying identification document must be uploaded via POST /participants/documents.
Existing participants
Any existing participants validated through documentary verification without the necessary document uploaded will automatically move to submitted status until such document is uploaded. When a document is uploaded for such an existing participant via POST /participants/documents, the participant can move to approved status.
If a Platform has impacted participants, Platform Solutions will send a list of affected participants to such Platform.
Summary
For customer verification, Zero Hash allows:
Documentary customer verification: ID types here – Required for non-US permanent residents (i.e., anyone who does not have an SSN). Also permitted for existing US customers who have already provided an identification number from a permissible official identification document, such as a passport or state driver’s license.
Non-documentary customer verification: SSN verification – Required for all US residents (with an SSN). Note: Platforms may still submit documentary evidence on top of SSN for these participants if they so choose.
Zero Hash has enhanced the technical logic and error handling around posting participants that have been verified using documentary verification. The technical logic now aligns with the existing Zero Hash compliance requirement that when a customer is submitted to POST /participants/customers/new with an ID type that is not SSN, the underlying identification document must be uploaded via POST /participants/documents.
Note that for US persons, non-documentary validation through SSN is permissible and no document is required to be uploaded.
Until a document is uploaded, the participant remains in a submitted state and is unable to make any requests (i.e., buy, sell, deposit, withdraw) until documents are posted. This logic upholds onboarding requirements for platforms and ensures participants missing necessary verification information are not advanced to approved.
Action required
It is an existing requirement that Platforms must ensure they are posting copies of a participant’s customer ID document that matches the identification (ID) number that was provided via POST /participants/customer/new. No document is required for non-documentary validation, currently only an SSN for US persons. Please note that the ID must be a permitted type.
Once Zero Hash receives the required documents, the participant will move to an approved state. More details on participant statuses here.
Endpoints impacted
If POST /participants/customers/new uses one of the following id_number_type, then an accompanying document is required to be submitted to POST /participants/documents:
us_drivers_license
us_passport
us_passport_card
us_permanent_resident_card
us_border_crossing_card
us_alien_card
us_id_card
non_us_passport
non_us_other
The only exception is SSN (considered non-documentary evidence). For id_number_type “ssn”, or if a U.S. tax_id (i.e., SSN) is submitted, there is no requirement to post a document.
Relevant documentation
API documentation regarding POST /participants/customers/new and POST /participants/documents
Related reminder (updated July 25, 2023)
Platforms also are reminded that as of September 5, 2023 (updated date), Zero Hash is implementing the enhanced “know your customer” or KYC format for all newly submitted retail Participant customers. This change was announced to Platforms on April 26, 2023.
As of September 5, 2023 (updated date), any new newly submitted participants whose application does not meet these standards will be declined.
Zero Hash now has the ability to apply different spreads per instrument (i.e., BTC/USD). Previously, only a default spread configuration existed. Now platforms have the ability to override this amount on a per-instrument basis.
Action Required
Please reach out to Zero Hash support if interested in using this feature as the configuration can only be made internally.
Informational – No action or changes necessary from platforms.
Summary
Zero Hash has updated our REST API to return all float and integers data types as a String. For more information on how to use our REST API to integrate with the Zero Hash Central Limit Order Book, please read our API specification Central Limit Order Book.
Endpoints impacted
The endpoint POST /orders/v1/search_orders will now return the parameters with the value represented as a string.
We will be implementing a change to improve performance related to settlement processing that requires the run_id field to migrate to a UUID "string" type.
On the REST API, the run_id field is currently being passed as type “string”, but appears as an integer (i.e., “123456”). We will be changing this to a UUID "string" type (i.e., “7f30ac2e-aa6d-4390-931a-2f947253722a”).
Additionally, on the Websocket Balances feed, the run_id is currently being passed as type “integer”. We will be changing this to a UUID "string" type.
Action required
Platforms need to adjust to make sure they support ingesting the run_id as a "string" instead of as an "integer". A specific use case that would be impacted would be if a platform is relying on the run_id integer to keep track of sequencing.
We’ve enhanced our Market Data product with three new features or endpoints: News, Symbol Data, and Images.
News
The News feature consists of three new endpoints that allow platforms access to aggregated crypto news. These endpoints include access to more than 70+ sources for relevant market news.
GET /market_data/news/latest: Access an aggregated feed of news articles with the ability to filter by various parameters such as news source, categories, lookback, language, and sort by.
GET /market_data/news/feeds: Displays a list of available news sources.
GET /market_data/news/categories: Displays a list of available categories to filter by.
Symbol Data
GET /market_data/symbol_data: This endpoint includes over 40+ data points related to a trading pair that allows platforms to create a more robust trading experience for users.
Images
This endpoint will allow users to retrieve the image in the URL received in the news and symbol data response.
Additional Important Information
Zero Hash uses dot notation. To query for an asset like BAT, use BAT.ETH/USD
Action required
To use the market data endpoints, a signed Market Data Services Addendum is required. Please contact our sales or client services team for pricing information via slack or via [email protected].
Roadmap
There are additional endpoints we are exploring related to market data, some include Blockchain Data, Social Sentiment, Market Indicators, Toplists/Watchlists, and Expanded OHLCV historical data time frames.
Informational – No action or changes necessary from platforms.
Summary
Zero Hash has updated their FIX API to include additional tags in new order single messages. This feature enables clients to close out all of their positions to liquidate their account balances. The liquidate balances feature bypasses any trade minimums defined by clients. To send a liquidation order for a participant, pass the tag ExecInst 18=c on new order entry messages. Orders that are supported in liquidating orders are Market to Limit orders only on the Sell side.
Endpoints impacted
On the FIX API, the following endpoints are impacted, the change being available in both Cert and Production environments:
December 1, 2023 (all other countries and jurisdictions except as noted below)
Release Type
Actionable – Updates required for platforms
Breaking – If appropriate IP and other preventive measures are not made by the relevant dates, Platforms will have newly submitted participants located in certain countries declined by Zero Hash:
Summary
Zero Hash has implemented prohibitions or restrictions on business activity with or in certain jurisdictions and countries, in compliance with legal and regulatory requirements. Updates have been made to the list of prohibited, restricted, and permitted higher-risk geographies.
Updated list
Following the recent completion of its latest review, Zero Hash is updating its list of prohibited and restricted list to the following countries and jurisdictions or geographies (new listings are noted in parentheticals):
Prohibited (Tier 1)
Belarus
Central African Republic
Democratic Republic of the Congo
Cuba
Gaza Strip (added October 31, 2023)
Iran
Iraq
North Korea
Lebanon (new)
Libya (new)
Mali (new)
Russia*
Somalia
South Sudan
Sudan
Syria
Russian Occupied Regions of Ukraine (Crimea, Luhansk AKA LNR, Donetsk AKA DNR)* (does not apply to territory controlled by the Government of Ukraine)
Yemen
Zimbabwe
*Russia-Ukraine War policy established March 2022.
Restricted (Tier 2)
Afghanistan
Albania (Western Balkans) (new)
Bosnia and Herzegovina (Western Balkans)
Burundi
Ethiopia
Guineau Bisseau (new)
Haiti (new)
Kosovo (Western Balkans)
Montenegro (Western Balkans) (new)
Nicaragua (new)
North Macedonia (Western Balkans) (new)
Serbia (Western Balkans) (new)
Venezuela (new)
Restricted (Tier 3)
Bahamas
People’s Republic of China (PRC)†
Japan
PRC Special Autonomous Region (SAR) Hong Kong‡
The Netherlands¶ (added October 31, 2023)
The United Kingdom§ (new)
† Additional limitations related to the People's Republic of China: No Platform or business with more than 50% Chinese investors will be approved as a customer of Zero Hash.
‡ As of June 1, 2023, all participant types from Hong Kong are blocked from onboarding and buying/acquiring assets. Existing participants are blocked from buying/acquiring assets but will be allowed to 1) sell/withdraw and 2) update their address if they are no longer located in Hong Kong.
§ As of October 8, 2023, no new customers will be permitted from the United Kingdom until Zero Hash has obtained the necessary licensing. Existing customers will be permitted to withdraw/sell existing assets.
¶ As of November 1, 2023, no new customers will be permitted from The Netherlands until Zero Hash has obtained the necessary licensing. Existing customers will be permitted to withdraw/sell existing assets.
Permitted Higher Risk Geographies
Following the recent completion of its latest review, Zero Hash also has established a new list of Permitted Higher Risk Geographies for which Enhanced Due Diligence measures will be applied to all existing and new Platform, business, and individual customers of Zero Hash and all Platform participants (whether natural or non-natural persons).
The following countries and jurisdictions or geographies are included in this list, which is based upon the FATF’s “Grey List” and other public and proprietary assessments of AML/CFT/CFP, fraud, corruption, and other relevant risks**:
Barbados
Bulgaria (added October 31, 2023)
Burkina Faso
Cameroon
Croatia
Gibraltar
Jamaica
Jordan
Mozambique
Nigeria
Panama
Philippines
Senegal
South Africa
Tanzania
Turkey
Uganda
United Arab Emirates
Vietnam
** As of November 1, 2023, the Cayman Islands is no longer included on this list.
Actions required
Platforms
Platforms must ensure they adhere to Zero Hash’s requirements for existing participant accounts in prohibited or restricted countries and jurisdictions and ensure no new participants are onboarded with Zero Hash.
Platforms must ensure they are able to properly and consistently identify the location (both at time of onboarding and for transactions) of participants consistent with Zero Hash’s requirements.
