Architect is a new perpetual futures exchange launched by former FTX US president Brett Harrison, focusing on traditional assets like stocks and forex to minimize risks from volatile crypto markets. It offers up to 25X leverage on stable pairs, prioritizing safe trading over high-risk speculation.
Brett Harrison’s Architect exchange avoids crypto to prevent irresponsible leverage trading.
It provides perpetual futures for stocks, forex, and rare metals using stablecoins as collateral.
Maximum leverage limited to 25X on low-volatility assets, contrasting crypto’s 100X+ norms; crypto perps volume hits $1.3 trillion monthly per DefiLlama data.
Discover Brett Harrison’s Architect perpetual futures exchange for traditional assets, designed to avoid crypto’s leverage pitfalls. Learn how it promotes responsible trading—explore now for safer investment strategies.
What is Architect Perpetual Futures Exchange?
Architect perpetual futures exchange is a new trading platform founded by Brett Harrison, former president of FTX US, launching in the coming weeks to offer derivative contracts on traditional assets like stocks, foreign exchange, and rare metals. Unlike crypto-focused platforms, it excludes digital assets to mitigate risks from high volatility and excessive leverage. Users can employ stablecoins for collateral, with initial access for institutions before retail availability.
Why Does Architect Avoid Crypto Assets in Perpetual Futures Trading?
Brett Harrison views leveraged trading on volatile crypto assets as irresponsible, a stance supported by recent market events like the October 10 flash crash that liquidated $19 billion in derivatives, according to industry reports. Architect limits leverage to a maximum of 25X on stable pairs like EUR/USD and 8X on more volatile stocks such as Tesla, aiming to foster long-term open interest rather than rapid account blowouts.
Harrison emphasized to COINOTAG that high leverage, often 100X to 1000X in crypto, turns exchanges into gambling platforms that profit from liquidation fees instead of supporting secure hedging. In traditional finance, perpetual futures enable traders to bet on asset directions without expiration dates, multiplying gains or losses based on chosen leverage. However, crypto’s decentralized exchanges like Hyperliquid and Aster bypass KYC requirements, allowing anyone to access extreme leverage with just a wallet.
Data from DefiLlama shows crypto perpetual futures generating $1.3 trillion in monthly volume, driven by retail demand for quick gains. Gleb Kostarev, co-founder of Telegram’s Blum app, noted to COINOTAG that 100X leverage attracts smaller portfolios, but Harrison argues this democratizes risk without safeguards, leading to liquidation cascades. BitMEX, credited with inventing crypto perps, has not commented on these concerns.
Frequently Asked Questions
What Inspired Brett Harrison to Launch Architect Perpetual Futures Exchange?
Brett Harrison drew inspiration from the success of perpetual futures in crypto but sought to eliminate its pitfalls by focusing on traditional assets. Launched post-FTX, Architect prioritizes responsible leverage to build sustainable trading, avoiding the $19 billion derivatives wipeout seen in recent crypto crashes, ensuring safer access for institutions and retail investors alike.
How Does Leverage Work on Architect Compared to Crypto Exchanges?
On Architect, leverage tops out at 25X for stable forex pairs and 8X for stocks, allowing controlled bets on price movements without expiration. In contrast, crypto platforms often permit 100X or more, amplifying both profits and liquidation risks—ideal for voice searches on balanced trading options that protect user capital in volatile markets.
Key Takeaways
- Responsible Leverage Limits: Architect caps leverage at 25X to prevent account blowouts, differing from crypto’s high-risk 1000X offerings.
- Focus on Traditional Assets: Includes stocks, forex, and metals, using stablecoins for collateral while excluding volatile cryptos.
- Safer Market Access: Starts with institutions, then retail, promoting hedging over gambling amid crypto’s $1.3 trillion perp volume.
Conclusion
Brett Harrison’s Architect perpetual futures exchange represents a shift toward responsible derivatives trading by emphasizing traditional assets and controlled leverage, addressing concerns over crypto’s irresponsible practices. As markets evolve, this platform could set a standard for safer innovation, encouraging investors to explore balanced strategies for long-term success—stay informed on emerging financial tools to navigate future opportunities.