What is Non-Custody?
Understand the fundamental difference between custodial and non-custodial trading. Learn why "Not your keys, not your coins" is the golden rule of crypto.
Custodial vs. Non-Custodial
In the world of finance, "custody" refers to who has physical or digital possession of your assets.
Custodial (CEX)
Think of a traditional bank. You give them your money, and they give you an IOU. They control the assets, and you must ask permission to move them.
Non-Custodial (DEX)
You are the sole possessor of your private keys. Assets live on the blockchain, and only you can authorize transactions. No middlemen involved.
Why Non-Custody Matters
The collapse of several major centralized exchanges has highlighted the inherent risks of custodial services. Non-custody provides three pillars of security:
- Elimination of Counterparty Risk: You don't have to trust that the exchange is solvent or acting ethically.
- Censorship Resistance: No central authority can freeze your funds or prevent you from trading.
- On-Chain Transparency: Every transaction and the state of all collateral is verifiable by anyone in real-time.
How Dexly Ensures Non-Custody
Dexly is built as a transparent interface to the Hyperliquid Layer 1 blockchain. When you trade on Dexly, you aren't depositing into a Dexly-owned account.
Permissionless Architecture
The Golden Rule
The most famous phrase in crypto is: "Not your keys, not your coins."
By choosing non-custodial platforms like Dexly, you are embracing the true spirit of decentralization. You have 100% ownership, 100% transparency, and 100% control over your financial future.
Responsibility
Keep Learning
Risk Warning: Trading perpetual futures involves significant risk of loss. Only trade with capital you can afford to lose. Dexly is a non-custodial interface; you are responsible for your own funds and trading decisions.