1. In crypto currencies, the notion of settlement banks to hold crypto does not exist. Zero Hash actually holds the crypto. Illustrate and define different ways as to how settlement on a crypto exchange may occur. 2. Assume that to allow clients to trade a BTC/USD contract, we request that they post collateral in USD, which is the settlement currency of the trade. If someone wants to post Ethereum as collateral to the BTC/USD trade, what would that type of margining be called? What are the risks of margining this trade this way and what should we do to mitigate these risks? 3. Describe the steps that the Risk team would need to take if a default of a participant were to occur?
