🎟️Interest Rates & Fees
Learn more about the interest and fees involved in Fixed Term Vaults.
Interest Rates
Confirmed Loan Fee Rate
Lenders will earn the Confirmed Loan Fee Rate, which is a fixed interest rate payable on loans made through the platform. Where interest rates are confirmed, this will be clearly labeled in the User Interface.
Calculating the Confirmed Loan Fee
The interest payable at maturity is calculated by applying the Confirmed Loan Fee Rate as specified in the Loan Confirmation to the principal amount of the loan for the number of days from and including the Loan Commencement Date until and excluding the Loan Maturity Date.
Indicative Loan Fee Rate
The Indicative Loan Fee Rate is the indicative interest rate on requested loans. This is to provide Lenders an estimate of the interest rate payable on requested loans.
Where interest rates are indicative, this will be clearly labeled in the User Interface.
Fee Table
Below is a list of the fees payable by the Borrower and Lender in relation to Loans made via the OpenTrade Treasury Management Product.
| Fee Name | Fee Type | Payable By | Payable To | Description |
|---|---|---|---|---|
Advisory Fee | APR | OpenTrade SPC | Five Sigma Finance Ltd. | Covers ongoing costs of advising the Borrower in the acquisition and ongoing management of loan collateral and its segregated portfolios. |
Platform Fee | APR | OpenTrade SPC | Open Trade Technology Ltd. | Covers ongoing costs of developing and maintaining the platform and legal framework, including technology development, code audits, legal fees, accounting and audit fees, compliance costs, among others. |
Early Withdrawal Request Fee | Fixed % deducted from the Amount of Loan to be terminated | Lenders | Open Trade Technology Ltd. | A flat fee applied to the Loan Amount subject to an Early Withdrawal Request. This fee covers the transaction and processing costs associated with early termination of loan(s). |
Confirmation of Fees
A Loan Confirmation will be issued by the Borrower to Lenders at the Loan Commencement which will contain the Confirmed Loan Fee Rate and all other fees in a legally binding document issued pursuant to the the Master Lending Agreement entered into between OpenTrade SPC and the Lender.
Payment of Fees
Fees are due and payable on each Payment Date.
Where a loan is terminated via an Early Withdrawal Request, fees will accrue daily on a 360 day year in respect of the period commencing on and inclusive of the Loan Commencement Date and terminating on the day an Early Withdrawal Request is made from the Lender to the Borrower.
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