> For the complete documentation index, see [llms.txt](https://docs.bima.money/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bima.money/introduction/counterparty-framework.md).

# Counterparty Framework

Most questions about a digital asset financing arrangement reduce to one: *where, exactly, is my asset, and who can touch it?* This page answers that directly.

## Where your assets sit

### Accountable vault infrastructure

Operates the dedicated vault your deposit is made into, with the controls, verification and reporting that institutional holders require. Accountable's role is verification and integrity of the deposit: confirming what was deposited, that it remains as agreed, and producing the reporting that lets you and your auditors see it.

### FalconX prime broker and capital

Holds the deposited assets and provides the capital released against them.

* CFTC-registered swap dealer
* MFSA-licensed crypto-asset service provider

FalconX is the balance sheet on the other side of the arrangement. The capital you receive comes from a regulated institutional prime broker, not from a pooled retail lending protocol.

### Bima arranger and administrator

* Structures the collar and sets the terms with you
* Executes the options leg that generates the premium subsidising the financing cost
* Manages hedges and portfolio-level risk on the derivative book
* Assembles and coordinates the counterparties
* Administers the programme end to end: term sheets, deposit, release, settlement, rollover, reporting

## No rehypothecation

Deposited assets are not lent out, re-pledged or reused to fund unrelated activity. The arrangement is documented, and the deposit's purpose is bounded by that documentation.

## Diligence them yourself

Both counterparties are named in writing before you deposit anything, and both are regulated entities. Bima's position is that you should verify them independently rather than take the arrangement on trust  request the documentation, review the licences, and speak to the counterparties directly if that is what your process requires.

{% hint style="info" %}
Counterparty risk is not eliminated by this structure — it is made **visible and nameable**. You are choosing to face specific, regulated institutions rather than an opaque pool. See [Risk Disclosures](file:///9502845/operations/risk-disclosures.md).
{% endhint %}