Allocation offers FCA‑regulated OTC derivatives—swaps and options—that trigger on publicly sourced space‑weather and launch performance data to hedge orbital risks such as solar storms, launch failures, and debris collisions. The platform provides standardized contract templates and an API for direct integration with satellite operators, insurers, and investors, enabling transparent price discovery, collateral management, and liquidity in the orbital risk market.
Funding
Funding not disclosed
Founders
Product
Problem
Satellite operators, insurers, and investors lack liquid, standardized financial instruments to hedge systemic orbital risks such as solar storms, launch failures, and debris collisions. Existing insurance products are capacity‑constrained and cannot efficiently price or transfer these event‑driven exposures.
Solution
Allocation provides regulated, event‑based derivatives—swaps and options—that trigger on objectively measured space‑environment data. Contracts reference public data sources (e.g., NASA, NOAA) and are executed through an FCA‑oversighted OTC desk, ensuring legal compliance and counterparty protection. By defining clear payoff structures tied to metrics like the Kp index or launch telemetry, the platform enables precise risk transfer without the underwriting lag of traditional insurance. A standardized contract library and API‑driven integration allow users to embed hedging workflows directly into satellite operations and asset‑liability management systems. The approach creates a transparent price discovery mechanism, fostering liquidity and attracting capital‑market participants to the orbital economy.
Target Audience
Primary customers are satellite operators seeking revenue protection, (re)insurers looking to transfer concentrated orbital risk, and institutional investors aiming to capture yield from event‑driven space risk premiums.
Features
- Event‑triggered swaps and options linked to real‑time space‑weather indices (Kp, solar flux) and launch performance data.
- Contracts built on verified public datasets from NASA, NOAA, and launch providers, ensuring objective and auditable triggers.
- FCA‑regulated OTC desk that handles trade execution, collateral management, and post‑trade clearing under established financial‑market standards.
- Standardized contract templates with predefined notional, tenor, and settlement terms to reduce negotiation time.
- RESTful API for seamless integration with satellite operators’ telemetry systems and insurers’ risk‑management platforms.
- Real‑time pricing engine leveraging stochastic modeling of orbital risk factors to generate bid/ask spreads.
- Built‑in margining and collateral optimization tools to meet regulatory capital requirements while preserving liquidity.
- Roadmap to an electronic trading venue for secondary market liquidity and price transparency.