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How it works

Learn more about the Lending Mechanics and Flow of Funds behind the OpenTrade Treasury Management Product.

Lending Mechanics

The Treasury Management Product will consist of thirteen (13) 4-week Loan Cycles each year where Lenders can make secured loans in USDC to OpenTrade SPC and earn returns in USDC as those loans are repaid. Lenders can automatically roll loans, withdraw early, or take repayment on the loan maturity date.
For more information on the lending lifecycle, please visit:

Loan Collateral

For the Treasury Management Product, all loans are fully collateralised with US Treasury Bills, USD, and USDC. Lenders hold a security interest in the collateral through the Security Trustee.
The Borrower is restricted to use loan proceeds only to buy eligible collateral and cannot move collateral outside of the accounts that the Security Trustee has a fully perfected security interest in.
For more information on Loan Collateral, please visit:

Interest Rates & Fees

Interest Rates
Each loan pays fixed interest rate to Lenders, known as the Confirmed Loan Fee Rate, which is set for each loan on the Loan Commencement Date.
Fees
The Borrower pays fees to the parties supporting the product. These include Advisory Fees (payable to the Investment Advisor, Five Sigma), Platform Fees (payable to the Platform Provider, Open Trade Technology Ltd.).
For more information on interest rates and fees, please see:

Early Withdrawal Requests

Early Withdrawal Request can be made by Lenders at anytime and processed on business days during banking hours. Lenders are repaid the net sale proceeds of the collateral behind their loan, less an Early Withdrawal Request Fee.
For more information on Early Withdrawal requests, please see:

Automatic Loan Rollover

By default, all Loans will have be set for Automatic Loan Rollover, whereby at the end of a Loan Cycle the principal and interest will compound and roll over into a new loan.
For more information on Loan Rollovers and Rollover Termination Notices, please see:

Withdrawing USDC

When a Lender would like to withdraw their USDC, they must first issue either a Rollover Termination Notice or Early Withdrawal Request. Once the loan has been repaid by the Borrower by depositing USDC into the vault, the Lender can redeem their vault tokens for the corresponding amount of USDC.
For more information on withdrawing USDC, please see:
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