The exchange rate for buy-and sell orders against payment in SEK or EUR includes a spread, which covers Safello’s costs for FX and fees to liquidity providers. No spread is applied in relation to Swap-orders, i.e. when you exchange one crypto-asset for another crypto-asset.
The exchange rate at which an order is executed is decided when the order has been executed with the relevant liquidity provider. When preparing an order, an estimated exchange rate is presented, i.e. an estimated amount of crypto-assets or fiat to be received by you after execution of the order. This estimated exchange rate reflects the best real-time exchange rate available for Safello, including the additional spread for buy- and sell orders, and therefore only serves as an estimated exchange rate for the order. The final exchange rate at which your order is actually carried out may therefore be higher or lower than the estimated exchange rate when the order was placed.
Due to the delay between the moment a customer accepts the estimate of the exchange rate and the moment when the order is executed with a liquidity provider, there always is a risk that the final exchange rate deviates from the estimated exchange rate. Although Safello puts in utmost effort to deliver the customer with an exchange rate that is no less favourable than the estimated exchange rate, there are certain limitations in this process. The risk of deviation increases in case the order is not executed immediately with a liquidity provider after the customer has placed the order.
In rare situations like the ones listed below, there is an increased risk of so-called slippage, i.e. that the final exchange rate at which an order is actually carried out differs from the estimated exchange rate which the customer accepted when placing the order. There is no possibility to reverse or refund orders due to such deviations. However, in cases when this difference is substantial, Safello should always request the decision from the customer if they would like to execute the order at the actual exchange rate.
Events increasing the risk for slippage:
The size of the order is large enough to influence the execution price in the order book of the liquidity provider;
The sudden price movement between the order estimate and the order execution influenced the exchange rate at which Safello could execute the order at the liquidity provider;
The order was flagged by Safello’s compliance systems (due to suspicion or any other alert), stopped from automated execution, and awaits a manual review by Safello staff which increases the delay.
The exchange rate at which your order is actually carried out is set out on your receipt for the order. Due to the high price volatility of crypto-assets in combination with the time it takes to process and execute a transaction, there’s always a risk that the actual exchange rate significantly deviates from the estimated exchange rate.
Safello has adopted policies for how your order shall be executed in order to achieve the best possible result for you as a customer. You can read more about this here.