# 1 .What is Cefi? CeFi (Centralized Finance) is a traditional or centralized finance, in which components such as the organization, the trading market, or the tools are centrally managed. In centralized finance is always accompanied by the phrase "custodial" or trust, ie assets, products and services in finance will be entrusted to certain organizations. For example: If we send money to the bank (loan to the bank), the money is entrusted to the holding bank. In centralized finance includes the following components: • Organizations: They can be governments, central banks, private banks, funds, financial services, hedge funds, retirement funds ... • Markets: Exchanges such as New York stock exchange, NASDAQ ... • Financial tools: Such as derivatives, loans, stocks, debts ... A very big limitation of traditional finance is centralization or centralization of power. DeFi is the solution for this. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.horaos.com/defi/2.-cefi-and-defi/1.what-is-cefi.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.