Insolvency of an exchange is the biggest risk for algorithmic trading. To mitigate this counterparty risk, we make arrangements with specific exchanges. An example of this is the solution of Ceffu Mirror. Ceffu is a custodial wallet from which the balance is “mirrored” 1:1 to Binance.
The funds will never leave the wallet and the result of the performance is settled at the end of the day. To further reduce the risk, the balance on the wallet is 100% insured with Arch Syndicate 2012 at Lloyd's of London. You can read more about our security measures on our security page.