I think you're confusing brokers and market makers with exchanges. Deribit is not a bucket shop. They're an exchange. Market makers will blow up but exchanges just fade into the void when volumes are not there
I think Deribit also acts as a broker. Last March they’ve lost half of their insurance fund and had to add 500 of their own Bitcoins to prevent socialized losses. Though they’ve been growing that fund at a rapid pace since (funded from commissions).
Doesn't matter what you think. Deribit doesn't act as a broker otherwise I wouldn't be doing 60% of my crypto turnover there.
I “think” because you didn’t help much and anyone reading it still wouldn’t understand who is your broker, and why Deribit needed to inject 500 bitcoins into its insurance fund last March. (I did write earlier that I don’t see risk on Deribit’s side)
I don't understand why on earth everyone refers to crypto - native exchanges as brokers when it clearly reads "Exchange"? They're willing to step in to prop up their insurance funds and they're valued at approx 1b USD, have several outside funding and 90% of crypto options volume. In other words, they're shitting and puking cash at the same time. Yes, they can blow up and you can lose all your money. If that's bothering you, you cannot trade on crypto native exchanges, period. You either need to work with the CME or use a 3rd party clearing service (which will cost you an arm and a leg)
While trading bitcoin options, I get to place a leveraged bet on the price and volatility of bitcoin depending on what I am aiming at at the moment. Along with that, I also get to the edge.