Your cover does not depend on our balance sheet.

If UnloadRisk shuts down

Your contract does not close when we do.

When you place a contract, it is executed on a CFTC-designated contract market and cleared through a CFTC-registered derivatives clearing organization. The position is carried for your benefit at the clearing organization, held separately from UnloadRisk's own assets. It is not an asset of UnloadRisk and not a liability we have to be solvent to meet.

Settlement runs off a published number. When the index the contract references resolves against your strike, the clearing organization settles it. Nobody at UnloadRisk has to be at their desk, and nobody at UnloadRisk decides whether you are paid.

• The position is carried for your benefit, segregated from our own assets.
• The payout is determined by a public number, not by our approval.
• You do not file anything with us, and you do not prove a loss to anyone.
• If UnloadRisk closes, the contract does not close with us. It remains at the venue and clearing organization and settles on its own schedule.

How the account itself is held depends on the stage described below. Today a customer holds their own account at the venue. Under our planned introducing-broker arrangement for block trades, you still hold your own account at the venue and clear directly at its clearing organization, and if UnloadRisk is later approved to hold customer funds itself, we would hold them under the CFTC's customer-funds rules. What does not change across those arrangements is the part that matters here: customer positions and customer funds are segregated from the firm's own money, and settlement is driven by the published index rather than by us.

Our regulatory path

Built for the CFTC-regulated derivatives system.

UnloadRisk structures listed event contracts that settle against public indices. These are derivatives, and we are building the business within the CFTC framework in deliberate stages. Each stage requires its own registration, and we hold none of them today. Where we stand on each is stated plainly below.

1. Commodity Trading AdvisorPending ApprovalAdvise clients on the contracts that fit their risks. Until the registration is granted we advise only within the limits of an available exemption from registration.
2. Introducing BrokerPending ApprovalSolicit and accept orders while a carrying broker holds customer accounts.
3. Futures Commission MerchantPending SubmissionHold customer funds and carry customer positions directly. This is the end state we are working toward, and the application has not been submitted.

We describe ourselves by the stage we have actually reached, never by the end state we are working toward. Nothing above should be read as an assertion that UnloadRisk currently holds a CFTC registration in any capacity, or as a promise that a pending application will be granted.

The contracts themselves are a separate matter from our own status. They trade on a CFTC-designated contract market and clear through a CFTC-registered derivatives clearing organization. Those registrations belong to the venue and the clearing organization, not to UnloadRisk.