OpenTrade Docs
  • 👋Welcome to OpenTrade
    • 💻Platform Overview
    • ⛓️Blockchain Protocol
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    • 🪙Supported Digital Assets
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  • Stablecoin Yield
    • 📘Product Overview
      • 🗳️Vaults
      • 🏛️Key Parties
      • 🔐Loan Collateral
      • ➡️Investment Process
      • ⬅️Withdrawal Process
      • 🪙Vault Tokens
      • 🧮Exchange Rates
      • 🗓️Calendar & Business Days
      • 👩‍⚖️Legal
        • 🛡️Bankruptcy Remote Structure
        • 📗Master Lending Agreement
        • 📓Loan Confirmations
        • 📃Security Trust Deed
        • 📙Platform Terms of Service
        • 🔍Privacy & Cookie Policies
    • 💸Stablecoin Yield Vaults
      • 🏦Money Market Fund Vaults
        • 💵USD Money Market Fund Vault
          • 💰Interest Rate & Fees
          • ➡️Making Loans
          • ⬅️Withdrawals
        • 💵Franklin Templeton Benji MMF Vault
          • 💰Interest Rate & Fees
          • ➡️Making Loans
          • ⬅️Withdrawals
        • 💵Flexible Term USDC Vault
          • 💰Interest Rate & Fees
          • ➡️Making Loans
          • ⬅️Withdrawals
        • 💶Flexible Term EURC Vault
          • 💰Interest Rate & Fees
          • ➡️Making Loans
          • ⬅️Withdrawals
      • 🏭High Yield Corporate Bond Vault
        • 💰Interest Rate, Exchange Rate, Fees
        • ➡️Making Loans
        • ⬅️Withdrawals
      • Managed DeFi Yield Vault (Beta)
        • 💰Interest Rate & Fees
        • ➡️Making Loans
        • ⬅️Withdrawals
      • 📆Fixed Term US Treasury Bill Vaults
        • ⏳Fixed Term Vault Mechanics
        • 🎟️Interest Rates & Fees
        • 🔄Early Withdrawal Requests
        • 🟢Loan Rollovers & Rollover Termination
        • 💬Loan Statuses
        • 🖱️Lender App Overview
  • 💻Integrations
  • ⚙️Contract Addresses
  • 🛡️Code Audits
  • 📥Onboarding
    • ✅Eligibility Requirements
  • 🧑‍💻User Guides
    • 🏎️Getting Started
    • 🔥Fireblocks Users
      • 🔄End-to-End
      • ✅Whitelisting Contracts
      • ⚙️Configuring Your TAP
      • 🔌Connecting via WalletConnect
      • 🪙Listing a Vault Token
      • ⬆️Making an Investment
      • ⬇️Making a Withdrawal Request
    • Safe{Wallet} Users
    • 🟦Coinbase Prime Users
    • 🟣Circle Mint Users
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On this page
  • Loan Collateral
  • Purchase and Sale of Collateral
  • Custody of Collateral
  • Lender's Security Interest over Collateral
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  1. Stablecoin Yield
  2. Product Overview

Loan Collateral

Learn more about the use of collateral in the stablecoin yield vaults.

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Last updated 1 month ago

Loan Collateral

Every loan made via the Treasury Management & YieldProduct is fully collateralised by eligible loan collateral.

At all stages of the transaction, loans are fully collateralised at 100% LTV. At no point are loans under or uncollateralized. The Borrower is legally restricted to use loan proceeds solely to acquire the applicable collateral and to have acquired the collateral before or on the Loan Commencement Date.

For information on each vault and its specific eligible loan collateral, see .

Purchase and Sale of Collateral

OpenTrade SPC, as advised by the Investment Advisor (Five Sigma Finance Ltd), engages in trading activity including the purchase and sale of loan collateral to ensure all loans are fully backed with eligible collateral and that withdrawal requests are processed according to the Lender's instructions.

The purchase and sale of loan collateral is done through a network of regulated financial institutions and broker/dealers based in the United Kingdom and Switzerland. OpenTrade SPC pays a fee to the financial institutions and broker/dealers based on the amount of collateral purchased and sold through them.

Custody of Collateral

All collateral is held in segregated accounts in the name of OpenTrade SPC, Treasury Management Segregated Portfolio 1 at regulated custodians in the United Kingdom and Switzerland. OpenTrade SPC pays a fee to these regulated custodians based on the value of the collateral held with them.

Lender's Security Interest over Collateral

The Borrower has granted a valid and fully perfected security interest in the accounts in which the collateral will be held pursuant to the .

The Security Trust Deed is a legal agreement that arranges for a to hold a master security interest in the collateral held in the Borrower's accounts on behalf of the Lenders.

In a default event, each Lender can enforce their individual right to the collateral securing their loans through the Security Trustee and instruct the Security Trustee to either liquidate the collateral or hold the collateral to maturity. The proceeds of either would be then used to repay lenders for loans in default.

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