Currently Supported

• Ethereum

• Avalanche C-Chain

Coming Soon

• Plume

• Base

The web application allows users to interact directly with the protocol by connecting their white-listed wallets and displaying relevant information, data, and workflow to assist users in interacting with the protocol.

What is OpenTrade?

OpenTrade is an institutional grade platform for stablecoin lending and yield products. Our offering combines a technology platform, legal framework, and network of regulated financial institutions that enable safe, compliant, and scalable stablecoin lending and yields products for the next generation of financial services & markets.

Use Cases

• Enabling 3rd parties like exchanges, neobanks, digital wallets, custodians, and other fintechs to offers institutional grade yield products to their users

• Enabling investors to build diversified portfolios of tokenized fixed income products for themselves and their customers

• Providing builders, token issuers, and credit markets with new, composable forms of digital collateral to power the next generation of financial markets

Currently Supported

The fork of the Perimeter protocol that OpenTrade runs on is developed and maintained by Open Trade Technology Ltd.

Overview

The protocol can support a wide variety of on-chain structured credit and lending products, including but not limited to:

• Lending with both real world assets ("RWA") and digital assets

• Collateralised and uncollateralized loans

• Single-sided and multi-sided credit markets

• Primary and secondary credit markets

• Fixed term loans and open loans

We intend to continue to extend and enhance Perimeter to support an increasingly wide variety of use cases across both RWAs and digital assets.

ERC-4626

It provides a standard API for tokenised yield-bearing vaults that represent units of a single underlying ERC-20 token. ERC-4626 also outlines an optional extension for tokenised vaults utilising ERC-20, offering basic functionality for depositing, withdrawing tokens and reading balances.

A yield-bearing vault is a smart contract that allows users to deposit different ERC-20 tokens into a pool of tokens in exchange for vTokens (vault tokens). Vault tokens give their holders a claim on underlying asset tokens held by the vault, plus any profits the pool has earned, minus any losses, defaults, and fees.

Vault tokens can be converted to asset tokens, and asset tokens can be converted to vault tokens, with the exchange occurring at a predetermined exchange rate.

Perimeter Implementation

In Perimeter, each ERC-4626 yield bearing vault is known as a liquidity pool. When lenders deposit ERC-20 stablecoin tokens (USDC, EUROC) into the liquidity pool, they are issued ERC-20 tokens called liquidity pool tokens in return. Each liquidity pool token represents a unit of ownership in the vault and its underlying assets, which are principally collateralised and uncollateralized USDC loans and USDC.

Loans are structured and disbursed to borrowers from these vaults. As loans are issued, loan repayments are made, and interest is accrued, the Net Asset Value (NAV) of each vault increases, meaning the value of each vault token increases by a corresponding amount. As defaults occur, the NAV of each vault decreases, meaning each share of the vault decreases by a corresponding amount.

When a lender withdraws from the vault, they exchange their vault tokens for the underlying asset token (USDC) at the current exchange rate.

Protocol Roles

Protocol Operator: The protocol operator is responsible for deploying, maintaining, and upgrading the protocol. Open Trade Technology Ltd. serves as the protocol operator.

Key Smart Contracts

Perimeter consists of a suite of smart-contracts deployed on Ethereum and Polygon that support the end to end lending transaction lifecycle. Below are the key smart-contracts the make up the Protocol.

For each OpenTrade product, the specific smart-contract addresses associated with the product will be listed and visible through the web app.

Extensions made to the Perimeter by OpenTrade

OpenTrade has forked and extended the Perimeter Protocol to support specific flows utilised by the Treasury Management Product. The most notable changes made by OpenTrade include:

• Introducing the concept of automatic loan rollover

• Introducing multiple vault types to support both fixed term and flexible term loans

• Ability to net inflows and outflows

• Additional date/time events in the lending lifecycle

• Advanced accounting functionality to support more efficient off-chain operations

• Simplifying the exchange rate mechanism to provide more predictability in yield to maturity

These extensions are designed to:

1. Improve the user experience, ensuring that Lenders who would like to rollover their principal and interest into the next loan cycle can do so automatically and;

2. Improve efficiency with regards to transaction costs, both on and off-chain, by ensuring that the movement between real-world assets, USD, and USDC is minimized to only the level necessary to process inflows and outflows at maturity and during early withdrawal requests.

3. Better support operations involving off-chain financial assets like US Treasury Bills with additional date/time events and advanced accounting functionality

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.

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

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.

Loan Vaults

Each Loan Vault is a unique smart-contract based on the ERC-4626 standard that has specific parameters, including:

• Loan Type (e.g. open-ended or fixed term)

• Eligible Collateral

• ERC-20 Vault Token

• Liquidity Asset (e.g. USDC, EURC)

• Interest Rate

• Exchange Rate

• Cut-Off Times

• Processing Times

• Fees

• User permissions

Vault Tokens

Vault Tokens are ERC-20 tokens that are unique to each Loan Vault.

Lender's mint vault tokens when loans are made and redeem vault tokens when loans are terminated via a withdrawal.

Each vault token is fungible within the loan vault it was issued from, but at this time they are not fungible across vaults. Tokens represent units of ownership in secured loans issued through the Loan Vault.

Adding the Vault Token to Your Wallet

If you'd like to view your vault token balances directly from within your wallet, you simply need to add the token address to your wallet. This is varies by wallet but is generally done by copying the Loan Vault contract address and inputing it into your wallet under "Add Token". Once done, the token symbol and your token balance will automatically be imported into your wallet. Please reference your wallet providers instructions for adding a token for further details.

Calendar Days

Calendar Day means any day on which USDC can be transferred, including Saturday, Sunday and public holidays.

Business Days

Business Day means any day other than a Saturday or a Sunday on which banks are open for business generally in London, New York, and Cayman Islands.

Close of Business

Close of Business means 6pm GMT/BST (Greenwich Mean Time/British Summer Time);

Summary

The OpenTrade Platform consists of a web application and API running on a blockchain protocol that supports a wide variety of stablecoin lending and yield products.

Products

OpenTrade's initial products built on the protocol are focused on stablecoin yield.

Integrations

The Platform has been designed to be extensible and composable across other Web2 and Web3 applications. We're currently working on integrations with several other credit markets, market makers, and exchanges to provide more utility, liquidity, and possibilities to OpenTrade users.

Embedded & White Labeling

While we provide a user interface with our web application, users and partners can develop their own interfaces on the protocol and integrate with their existing systems.

Institutional Yield Infrastructure

Partners, like exchanges, custodians, and wallets can leverage OpenTrade's platform and legal framework to provide institutional grade yield products to their customers.

Blockchain Protocol

The blockchain protocol is a series of smart-contracts deployed on Ethereum and Avalanche that are based largely on ERC-2626 and ERC-20 standards.

Learn more about the blockchain protocol here:

Web Application

The web application is a cloud-based web application accessed through the browser. It provides an intuitive user interface for interacting with our stablecoin yield products, but others are free to develop their own interfaces on the protocol and API.

Learn more about the web application here:

Summary

OpenTrade's stablecoin yield products provides a technology platform, blockchain protocol, API, legal framework, and bankruptcy remote banking and custody infrastructure that enable three primary use cases:

1. Enables other Web2 and Web3 Fintechs to build and deploy white-labeled and fully embedded yield products for their customers

2. Enables companies and institutional investors too better manage their own treasury cash

3. Provides programmable yield infrastructure for developers to build next generation financial markets applications, including stablecoin issuers, yield token issuers, DAOs, DeFi markets, and more.

How it works

Key Information

Benefits

Commercial

• Stable, safe returns backed by high quality financial assets with bank-grade legal safe guards and protections

• Power seamless two-click stablecoin yield experiences, embedded in your existing interfaces and user experiences

• Incentivise stickiness and engagement from existing users, while also attracting new customers

• Generate significant new revenue streams

• Control your economics; charge what you want, when you want

Product / Technical / Ops

• Provide a suite of products with different yields and risk profiles.

• Begin earning interest immediately, withdraw same day

• Simple, secure integration via API or protocol

• Provide a Web2 experience - crypto complexity is abstracted away entirely

• Access granular historical reporting data

Trust / Transparency / Safety

• Provide complete transparency on backing assets down to the ISIN level

• Collateral managed by FCA regulated asset manager

• Leveraging Tier 1 banks, custodians, and brokers

• Bankruptcy remote SPVs with fully segregated assets

• Independent Security Trustee with step-in rights

Currently Supported

• MetaMask

• Fireblocks via WalletConnect

• MetaMask Institutional

• Coinbase Wallet

• ForeDeFi

• WalletConnect compatible wallets

The purpose of a Loan Confirmation is to confirm the terms and condition of the Loan entered into under the Master Loan Agreement. Loan Confirmations are legally binding documents issued to each Lender via email on the day of Loan Commencement.

Loan Confirmations contain the key terms of loans made through the platform, including:

Summary

The legal structure for OpenTrade’s Treasury Management & Yield Product is secured lending to a bankruptcy remote Cayman Segregated Portfolio Company (SPC), OpenTrade SPC, which is operated by an independent board of directors and an FCA regulated investment firm.

Legal Architecture

Below is an overview of the key entities involved and the legal agreements between them.

Key Legal Agreements

Master Lending Agreement

The agreement governing lending activity made through the OpenTrade Platform. It is executed between the Borrower and each Lender during the onboarding process.

Learn more about the Master Lending Agreement below:

Loan Confirmation(s)

Issued pursuant to the Master Lending Agreement for each individual loan made through the platform. Each Loan Confirmation specifies the legally binding terms of each loan.

Learn more about Loan Confirmations below:

Security Trust Deed

All loans made via the OpenTrade Treasury Management & Yield Product are fully collateralised with eligible loan collateral (US Treasury Bills, USD, and USDC). A Security Trustee holds a security interest on behalf of Lenders in all collateral and the accounts in which collateral is held pursuant to a Security Trust Deed.

Read the Security Trust Deed below:

Platform Terms and Conditions

An agreement between Lenders, the Borrower (OpenTrade SPC), and Open Trade Technology Ltd (the Platform Provider) governing use of the OpenTrade Platform. You agree to these Terms & Conditions by accessing the OpenTrade Platform.

Read the Terms and Conditions below:

Privacy Policy

The Privacy Policy will inform you as to how we look after your personal data when you use our “Services” (our website(s), app(s), protocols, tools, and systems) or interact with us in any other way.

Read the Privacy Policy here:

Summary

There are several different types of Money Market Fund Vaults on the OpenTrade Platform. Each has slight differences in how they work but they all use highly rated USD and EUR Money Market Funds as collateral, enabling users to earn the risk free rate of return on their stablecoins while maintaining maximum liquidity, safety, and stability.

USD Money Market Fund Vault (V5)

The primary difference between the USD Money Market Vault and the Flexible Term USDC Vault is the version of the protocol they run on. The Flexible Term USDC Vault runs on Version 4 and the USD Money Market Vault runs on Version 5.

Version 5 vaults provide more flexibility in the flow of funds, use simpler contracts which are easier to upgrade, and support for several different exchange rate methods in a single vault type.

Franklin Templeton Benji MMF Vault (V5)

The primary difference between the USD Money Market Vault and the Franklin Templeton Benji MMF Vault is the latter exclusively uses Franklin Templeton's tokenised money market fund (BENJI) as the underlying collateral. As such, the yield and processing times can vary from the other money market fund vaults.

Flexible Term USDC Vault (V4)

Flexible Term EURC Vault (V4)

This vault is exactly the same as its counterpart, the only difference is the liquidity asset is EURC and the underlying collateral is a EUR Money Market Fund.

All loans made via the OpenTrade Treasury Management & Yield Product are collateralised on a 1:1 basis with eligible loan collateral. A Security Trustee holds a security interest on behalf of Lenders in all collateral and the accounts in which collateral is held pursuant to a Security Trust Deed.

What is the Security Trust Deed?

The Security Trust Deed and Security Trustee's objective is to protect Lenders by ensuring all loan proceeds and collateral is held in accounts over which the Security Trustee has a full security interest in so that in the event of a default, the collateral can be recovered to repay lenders.

As part of the MLA, the Borrower warrants that it has acquired or will acquire the collateral on the Loan Commencement Date and has granted a valid and fully perfected security interest in the collateral and the accounts in which the collateral is held pursuant to the Security Trust Deed.

Why use a Security Trust Deed and Trustee?

The use of a Security Trust Deed and Security Trustee is very common in the financial markets, especially in loan syndications and securitisation. It is done for the sake of efficiency, as it avoids the need to grant security separately to all creditors, which is costly and impractical for all parties.

What happens in the event of default?

In event of a Default under the MLA, each Lender can enforce their individual right to the collateral securing their loans by instructing the Security Trustee to either liquidate the collateral or hold the collateral to maturity. The Security Trustee will take control over the Secured Accounts and follow instructions of the creditors, including liquidating loan collateral to repay lenders.

Key Terms of the Security Trust Deed

Assignment of Security Interest to the Security Trustee

The Borrower assigns a continuing security interest to the Security Trustee all of its rights, title, interest and benefit, existing now and in the future, to each secured account (the digital asset wallets, cash, and securities accounts in which collateral is held) and the secured assets they hold (assets used as collateral for loans).

Restriction on movement of secured assets

Secured assets may only be moved from a secured account in order to discharge the obligations of the Borrower to the Secured Creditors (the Lenders) in accordance with the terms of the MLA. This includes:

• Minting USDC with USD

• Redeeming USDC for USD

• Transferring USD to purchase collateral (e.g. US Treasury Bills)

• Selling collateral to meet withdrawal requests.

This ensures that the Borrower can only move funds and assets as required to repay loans for the purposes of fulfilling its obligations under the MLA.

Other Key Terms include:

• Notice of assignment to banks/custodians where collateral is held

• Application of proceeds (aka the waterfall)

• Receipt and execution of instructions from Lenders

• Restrictions on changes the Borrower can make to its agreements to protect Lenders

Who is the Security Trustee?

OpenTrade SPC has appointed Mulvaney Trustees (UK) Ltd (dba Vantru) as Security Trustee.

OpenTrade's Master Lending Agreement (MLA) is a master agreement governing secured lending between Lenders and Borrowers on the OpenTrade Platform.

What is the Master Lending Agreement (MLA)?

The MLA is an umbrella agreement that defines lending mechanics, rights and obligations of the parties, roles and responsibilities of the parties, definitions, and more.

Key Terms of the MLA

• Definitions & Parties

• Borrower agrees that the Loans (and any proceeds thereof) will be used solely to acquire the applicable Collateral and pay amounts due including fees.

• Borrower and lender warranties

• Default event(s) and consequences

• Termination, Notices, and Assignment

• English Law as the governing law and jurisdiction

Making a Loan

Making a loan into a USD Money Market Fund Vault is a simple process. After you've been onboarded, the steps are as follows:

1. Select the blockchain network you want to access the vault on

2. Connect your whitelisted wallet

3. Select the USD Money Market Fund Vault

4. Click "Invest"

5. Input an amount you'd like to lend and click "Approve Spending Cap"

6. Approve the spending cap in your wallet

7. Confirm the amount and click "Invest"

8. USDC will be transferred from your wallet & you will receive vault tokens at the current exchange rate.

9. The transfer will show as "Pending Advance" until the Advance Processing Time lapses, after which time it will begin accruing interest.

Advance Processing Time

The Advance Processing Time is the number of business days before you will begin accruing interest.

Until the Advance Processing Time has lapsed, the advance amount will show as pending. Once the Advance Processing Time lapses, the principal amount will accrue interest every day.

Advance Cut-Off Time

The Advance Cut-Off Time is the time in UTC that loans must be made to be considered same day. For loans made before the cut-off time, they will be considered same day. For loans made after the cut-off of time, they will be considered to have been made the next business day.

For loans made on Non-Business Days (e.g. weekends and banking holidays), they will be considered to have been made on the next business day.

Summary

Currently, all loans made via the OpenTrade Treasury Management & Yield Product are made to a single Borrower, OpenTrade SPC, a segregated portfolio company registered in the Cayman Islands.

OpenTrade SPC has been designed to be "bankruptcy remote" meaning its assets would not form part of the bankruptcy estate of any other entity involved in supporting the OpenTrade Platform.

This is to ensure that loan collateral is protected and, in an extreme case, can be recovered by Lenders as secured creditors of the Borrower in a default event.

What is a Segregated Portfolio Company (SPC)?

The segregated portfolio company (SPC) is a type of exempted company in the Cayman Islands established under the Companies Act.

An SPC is single legal entity that can create Segregated Portfolios ("SP") such that the assets and liabilities of each Portfolio are legally separate from the assets and liabilities of any other Portfolio and from the SPC's general assets and liabilities. This is known as the segregation principle.

The central tenets of the segregation principle, as prescribed by the Companies Act, are these:

As regards each Portfolio's assets:

• those assets are only available and may only be used to meet liabilities to the creditors and shareholders of the SPC who are, respectively, creditors in respect of that Portfolio and are entitled to recourse to those assets for that purpose; and

• those assets are not available and may not be used to meet liabilities to creditors of the SPC who are not creditors in respect of that Portfolio

As regards each Portfolio's liabilities (being liabilities in respect of or attributable to that Portfolio):

• each such liability extends only to, and the person in respect of that liability is entitled to have recourse only to:

  • firstly, that Portfolio's assets; and

  • secondly, unless the SPC's articles specifically prohibit, the SPC's general assets to the extent that Portfolio's assets are insufficient to meet the liability (and to extent that the SPC's general assets exceed any minimum capital amount lawfully required by a regulatory body in the Cayman Islands).

• each such liability does not extend to, and the person in respect of that liability is not entitled to have recourse to, any other Portfolio's assets.

The segregated-portfolio concept also exists in various other jurisdictions (such as Delaware, Bermuda, British Virgin Islands, Guernsey and Jersey) and has become increasingly well understood and recognised. In May 2012, the Cayman Islands Court of Appeal, in ABC Company (SPC) v J & Co. Ltd (this was the first Cayman case to consider the SPC provisions), acknowledged the separateness of segregated portfolios while emphasising that the SPC’s status as a single legal entity.

OpenTrade SPC, Treasury Management Segregated Portfolio 1

OpenTrade SPC holds segregated accounts for each portfolio and each product so that the assets and liabilities of each segregated portfolio are ring fenced from the assets and liabilities of its other segregated portfolios, and the Cayman SPC overall is ring fenced from the assets and liabilities of other entities involved in the OpenTrade ecosystem.

The segregated portfolio of OpenTrade SPC which collateral for loans made via the Treasury Management & Yield Product is OpenTrade SPC, Treasury Management Segregated Portfolio 1. The assets in this segregated portfolio are only available to and may only be used to meet liabilities to Lenders who have made loans via the Treasury Management & Yield Product.

Summary

The USD Money Market Fund Vault aims to provide lenders with the risk free rate of return for USD. It's collateral portfolio consists exclusively of highly liquid US Treasury Bills and USD Money Market Funds.

Interest accrues and compounds daily and lenders can move in and out at anytime. Withdrawals made before the cut off time are repaid same day, typically within 6 hours.

Interest Rate & Fees

The interest rate, known as the Loan Fee Rate, is the annual rate of interest used to calculate the amount of interest payable to the Lender. In other words, this is the annual interest rate accrued by Lenders each day for Loans made to the Borrower (OpenTrade SPC).

In the Flexible Term USDC Vault, the interest rate is set to a public benchmark. Principal and interest is compounded daily.

Calculating the Loan Fee Rate

The Loan Fee Rate is calculated by subtracting the Benchmark Rate from Fees, where Fees are defined as the sum of the Advisor Fee, Platform Fee, and Spread.

Example

.0525 - (0.001 + 0.002 + 0.002) = 0.0475

Calculating the Daily Interest Rate

The Loan Fee Rate is transformed into a Daily Interest Rate each day by taking 1 day of the Loan Fee Rate, compounded daily

Example

Where the Loan Fee Rate = 0.0475 (4.75% APR),

(1 + .0475) ^ 1/365 - 1 = 0.01074598%

Interest Rate & Fees

The interest rate, known as the Loan Fee Rate, is the annual rate of interest used to calculate the amount of interest payable to the Lender. In other words, this is the annual interest rate accrued by Lenders each day for Loans made to the Borrower (OpenTrade SPC).

In the Flexible Term USDC Vault, the interest rate is set to a public benchmark. Principal and interest is compounded daily.

Calculating the Loan Fee Rate

The Loan Fee Rate is calculated by subtracting the Benchmark Rate from Fees, where Fees are defined as the sum of the Advisor Fee, Platform Fee, and Spread.

Example

.0525 - (0.001 + 0.002 + 0.002) = 0.0475

Calculating the Daily Interest Rate

The Loan Fee Rate is transformed into a Daily Interest Rate each day by taking 1 day of the Loan Fee Rate, compounded daily

Example

Where the Loan Fee Rate = 0.0475 (4.75% APR),

(1 + .0475) ^ 1/365 - 1 = 0.01074598%

Available Vaults

See below a list of available vaults

Money Market Fund Vaults

High Yield Vaults

DeFi Vaults

Summary

The Franklin Templeton Benji MMF Vault aims to provide lenders with the risk free rate of return for USD. It's collateral portfolio consists exclusively of Franklin Templeton's tokenised money market fund - BENJI.

Interest accrues and compounds daily and lenders can move in and out at anytime. Withdrawals made before the cut off time are repaid same day, typically within 6 hours.

Vault tokens are issued to the Lender's whitelisted wallet. It is the sole responsibility of the Lender to ensure proper security and custody of the vault tokens it's issued.

User Guide: How to Make a Loan

Video Demonstration

View the video to see how to lend USDC into a Loan Vault. The process is the same for both Fixed Term and Flexible Term Vaults.

Vault Token Exchange Rate

Vault Tokens and the Liquidity Asset (e.g. USDC, EURC) are exchanged during deposits and withdrawals at a defined exchange rate. This exchange rate translates interest accrued at the current interest rate.

Exchange Rate Methods

Vaults have multiple different exchange rate calculation methods which correspond to the type of yield product the vault is supporting.

Compounding

It is designed to support flexible term loan products pegged to a variable benchmark rate or index rate such as SOFR.

It is calculated by taking the Loan Fee Rate for that day, calculating the Daily Interest Rate by taking 1 day of interest (compounded daily), and adding it to the prior days exchange rate.

Dynamic

The exchange rate rises and falls according to the price of the underlying collateral or benchmark.

The calculation for a dynamic exchange rate is as follows:

Exchange Rate = [ (Total Number of Collateral Shares / Units ) x ( Collateral Share / Unit Price) ] + (Cash) ]-(Daily Fees) / Total Tokens Outstanding

Linear

A variable annualised interest rate that is not compounded. The annualised interest rate is converted into a rate which increases linearly each day.

It is designed to support products that maintain a fixed interest rate where principal and interest does not compound daily.

Term

A fixed annualised interest rate for fixed term loan products. The fixed annualised interest rate is converted into a rate which increases linearly each day until the maturity date.

For Fixed Term Vaults, the exchange rate is calculated as:

Value of Principal and Interest at Maturity / Outstanding Vault Tokens

The exchange rate is updated at the beginning of each loan cycle based on the Loan Principal Amount and the Confirmed Loan Fee Rate.

Making a Loan

Making a loan into a Flexible Term USDC Vault is a simple process. After you've been onboarded, the steps are as follows:

1. Select the blockchain network you want to access the vault on

2. Connect your whitelisted wallet

3. Select the Flexible Term USDC Vault

4. Click "Invest"

5. Input an amount you'd like to lend and click "Approve Spending Cap"

6. Approve the spending cap in your wallet

7. Confirm the amount and click "Invest"

8. USDC will be transferred from your wallet & you will receive vault tokens at the current exchange rate.

9. The transfer will show as "Pending Advance" until the Advance Processing Time lapses, after which time it will begin accruing interest.

Advance Processing Time

The Advance Processing Time is the number of business days before you will begin accruing interest.

Until the Advance Processing Time has lapsed, the advance amount will show as pending. Once the Advance Processing Time lapses, the principal amount will accrue interest every day.

Advance Cut-Off Time

The Advance Cut-Off Time is the time in UTC that loans must be made to be considered same day. For loans made before the cut-off time, they will be considered same day. For loans made after the cut-off of time, they will be considered to have been made the next business day.

For loans made on Non-Business Days (e.g. weekends and banking holidays), they will be considered to have been made on the next business day.

Making a Loan

Making a loan into a Flexible Term USDC Vault is a simple process. After you've been onboarded, the steps are as follows:

1. Select the blockchain network you want to access the vault on

2. Connect your whitelisted wallet

3. Select the Flexible Term USDC Vault

4. Click "Invest"

5. Input an amount you'd like to lend and click "Approve Spending Cap"

6. Approve the spending cap in your wallet

7. Confirm the amount and click "Invest"

8. USDC will be transferred from your wallet & you will receive vault tokens at the current exchange rate.

9. The transfer will show as "Pending Advance" until the Advance Processing Time lapses, after which time it will begin accruing interest.

Advance Processing Time

The Advance Processing Time is the number of business days before you will begin accruing interest.

Until the Advance Processing Time has lapsed, the advance amount will show as pending. Once the Advance Processing Time lapses, the principal amount will accrue interest every day.

Advance Cut-Off Time

The Advance Cut-Off Time is the time in UTC that loans must be made to be considered same day. For loans made before the cut-off time, they will be considered same day. For loans made after the cut-off of time, they will be considered to have been made the next business day.

For loans made on Non-Business Days (e.g. weekends and banking holidays), they will be considered to have been made on the next business day.

Summary

The flexible term USDC Vault aims to provide lenders with the risk free rate of return for USD. It's collateral portfolio consists exclusively of highly liquid US Treasury Bills and USD Money Market Funds. Interest accrues and compounds daily and lenders can move in and out at anytime. Withdrawals made before the cut off time are repaid same day, typically within 6 hours.

Interest Rate & Fees

The interest rate, known as the Loan Fee Rate, is the annual rate of interest used to calculate the amount of interest payable to the Lender. In other words, this is the annual interest rate accrued by Lenders each day for Loans made to the Borrower (OpenTrade SPC).

In the Franklin Templeton Benji MMF Vault, the interest rate is set to a public benchmark. Principal and interest is compounded daily.

Calculating the Loan Fee Rate

The Loan Fee Rate is calculated by subtracting the Benchmark Rate from Fees, where Fees are defined as the sum of the Advisor Fee, Platform Fee, and Spread.

Example

Calculating the Daily Interest Rate

The Loan Fee Rate is transformed into a Daily Interest Rate each day by taking 1 day of the Loan Fee Rate, compounded daily

Example

Where the Loan Fee Rate = 0.0475 (4.75% APR),

Below is a list of all the key parties involved in OpenTrade Treasury Management & Yield Product and their roles and responsibilities.

Interest Rate & Fees

The interest rate, known as the Loan Fee Rate, is the annual rate of interest used to calculate the amount of interest payable to the Lender. In other words, this is the annual interest rate accrued by Lenders each day for Loans made to the Borrower (OpenTrade SPC).

In the Flexible Term EURC Vault, the interest rate is set to a public benchmark. Principal and interest is compounded daily.

Calculating the Loan Fee Rate

The Loan Fee Rate is calculated by subtracting the Benchmark Rate from Fees, where Fees are defined as the sum of the Advisor Fee, Platform Fee, and Spread.

Example

.0525 - (0.001 + 0.002 + 0.002) = 0.0475

Calculating the Daily Interest Rate

The Loan Fee Rate is transformed into a Daily Interest Rate each day by taking 1 day of the Loan Fee Rate, compounded daily

Example

Where the Loan Fee Rate = 0.0475 (4.75% APR),

(1 + .0475) ^ 1/365 - 1 = 0.01074598%

Privacy Policy

Welcome to the Open Trade Technology Ltd's (“OTT”) privacy policy. OTT respects your privacy and is committed to protecting your personal data. This privacy policy will inform you as to how we look after your personal data when you use our “Services” (our website(s), app(s), protocols, tools, and systems) or interact with us in any other way. We are the controller and responsible for the processing of your personal data.

If you have any questions about this privacy policy or our privacy practices, please contact us by emailing info@open-trade.io. This privacy policy was last updated on July 25, 2023. You have the right to make a complaint at any time to the Information Commissioner's Office (ICO), the UK regulator for data protection issues (www.ico.org.uk). We would, however, appreciate the chance to deal with your concerns before you approach the ICO so please contact us in the first instance.

Third-party links

Our Services may include links to third-party websites, plug-ins, and applications. Clicking on those links or enabling those connections may allow third parties to collect or share data about you. We do not control third-party websites and are not responsible for their privacy statements. When you leave our Services, we encourage you to read the privacy policy of every third party service you visit.

The data we collect about you

Personal data, or personal information, means any information about an individual from which that person can be identified. It does not include data where the identity has been removed (anonymous data). We may collect, use, store and transfer different kinds of personal data about you which we have grouped together as follows:

• Identity Data includes first name, maiden name, last name, passport/ID details, title, date of birth and gender.

• Contact Data includes email address and telephone numbers.

• Financial Data includes source of wealth, wallet addresses and wallet balances.

• Transaction Data includes details about transactions made through our platform, such as amounts, wallet addresses, and fees paid by you or due to you

• Technical Data includes internet protocol (IP) address, your login data, browser type and version, time zone setting and location, browser plug-in types and versions, operating system and platform, and other technology on the devices you use to access this website.

• Usage Data includes information about how you use our Services.

• Marketing and Communications Data includes your preferences in receiving marketing from us and our third parties and your communication preferences.

We also collect, use, and share Aggregated Data such as statistical or demographic data for any purpose. Aggregated Data could be derived from your personal data but is not considered personal data in law as this data will not directly or indirectly reveal your identity. For example, we may aggregate your Usage Data to calculate the percentage of users accessing a specific website feature. However, if we combine or connect Aggregated Data with your personal data so that it can directly or indirectly identify you, we treat the combined data as personal data which will be used in accordance with this privacy policy.

If you fail to provide personal data

Where we need to collect personal data by law, or under the terms of a contract we have with you, and you fail to provide that data when requested, we may not be able to perform the contract we have or are trying to enter into with you (for example, to provide our Services to you).

How is your personal data collected?

We use different methods to collect data from and about you including through:

• Direct interactions. You may give us your Identity, Contact and Financial Data by filling in forms or by corresponding with us by post, phone, email or otherwise.

• Third parties or publicly available sources. We will receive personal data about you from various public sources (such as sanctions lists) and third parties including public databases, KYC and ID verification service providers, and credit reference agencies.

How we use your personal data

• We will only use your personal data when the law allows us to. Most commonly, we will use your personal data in the following circumstances:

• Where we need to perform the contract we are about to enter into or have entered into with you.

• Where it is necessary for our legitimate interests (or those of a third party) and your interests and fundamental rights do not override those interests.

• Where we need to comply with a legal obligation.

• Where you have given your consent. Generally, we do not rely on consent as a legal basis for processing your personal data although we will get your consent before sending third party direct marketing communications to you via email or text message. You have the right to withdraw consent to marketing at any time by contacting us.

Purposes for which we will use your personal data

• To register you as a new customer and provide you with our Services, which includes carrying out mandatory financial crime compliance checks.

• To manage our relationship with you.

• To administer and protect our business and this website (including troubleshooting, data analysis, testing, system maintenance, support, reporting and hosting of data).

• To deliver relevant website content and advertisements to you and measure or understand the effectiveness of the advertising we serve to you.

• To use data analytics to improve our Services, marketing, customer relationships and experiences.

• To make suggestions and recommendations to you about Services that may be of interest to you.

Disclosures of your personal data

We may share your personal data with the parties set out below.

• Service providers who provide IT services and KYC services.

• Professional advisers including lawyers, bankers, auditors and insurers.

• HM Revenue & Customs, regulators and other authorities.

International transfers

Some of our external third parties are based outside the UK so their processing of your personal data will involve a transfer of data outside the UK. Whenever we transfer your personal data out of the UK, we ensure a similar degree of protection. We will only transfer your personal data to countries that have been deemed to provide an adequate level of protection for personal data or alternatively, we may use specific contracts approved for use in the UK which give personal data the same protection it has in the UK. Please contact us if you want further information on the specific mechanism used by us when transferring your personal data out of the UK.

Data security

We have put in place appropriate security measures to prevent your personal data from being accidentally lost, used or accessed in an unauthorised way, altered or disclosed. In addition, we limit access to your personal data to those employees, agents, contractors and other third parties who have a business need to know. They will only process your personal data on our instructions and they are subject to a duty of confidentiality.

Data retention

We will only retain your personal data for as long as reasonably necessary to fulfil the purposes we collected it for, including for the purposes of satisfying any legal, regulatory, tax, accounting or reporting requirements. We may retain your personal data for a longer period in the event of a complaint or if we reasonably believe there is a prospect of litigation in respect to our relationship with you.

Your legal rights

Under certain circumstances, you have rights under data protection laws in relation to your personal data. You have the right to:

• Request access to your personal data (commonly known as a "data subject access request"). This enables you to receive a copy of the personal data we hold about you and to check that we are lawfully processing it.

• Request correction of the personal data that we hold about you. This enables you to have any incomplete or inaccurate data we hold about you corrected, though we may need to verify the accuracy of the new data you provide to us.

• Request erasure of your personal data. This enables you to ask us to delete or remove personal data where there is no good reason for us continuing to process it. You also have the right to ask us to delete or remove your personal data where you have successfully exercised your right to object to processing (see below), where we may have processed your information unlawfully or where we are required to erase your personal data to comply with local law. Note, however, that we may not always be able to comply with your request of erasure for specific legal reasons which will be notified to you, if applicable, at the time of your request.

• Object to processing of your personal data where we are relying on a legitimate interest (or those of a third party) and there is something about your particular situation which makes you want to object to processing on this ground, as you feel it impacts on your fundamental rights and freedoms. You also have the right to object where we are processing your personal data for direct marketing purposes. In some cases, we may demonstrate that we have compelling legitimate grounds to process your information which override your rights and freedoms.

• Request restriction of processing of your personal data. This enables you to ask us to suspend the processing of your personal data in the following scenarios:

  • If you want us to establish the data's accuracy.

  • Where our use of the data is unlawful but you do not want us to erase it.

  • Where you need us to hold the data even if we no longer require it as you need it to establish, exercise or defend legal claims.

  • You have objected to our use of your data but we need to verify whether we have overriding legitimate grounds to use it.

• Request the transfer of your personal data to you or to a third party. We will provide to you, or a third party you have chosen, your personal data in a structured, commonly used, machine-readable format. Note that this right only applies to automated information which you initially provided consent for us to use or where we used the information to perform a contract with you.

• Withdraw consent at any time where we are relying on consent to process your personal data. However, this will not affect the lawfulness of any processing carried out before you withdraw your consent. If you withdraw your consent, we may not be able to deliver our Services to you. We will advise you if this is the case at the time you withdraw your consent.

What we may need from you

We may need to request specific information from you to help us confirm your identity and ensure your right to access your personal data (or to exercise any of your other rights). This is a security measure to ensure that personal data is not disclosed to any person who has no right to receive it. We may also contact you to ask you for further information in relation to your request to speed up our response.

Time limit to respond

We try to respond to all legitimate requests within one month. Occasionally, it could take us longer than a month if your request is particularly complex or you have made several requests. In this case, we will notify you and keep you updated.

Cookie Policy

Scope of This Policy

1. Open Trade Technology Ltd (we or us or our) uses cookies when you visit our website, www.open-trade.io, (the Website) to help customise the Website and improve your experience using the Website.

2. This Policy applies between you, the user of this Website, and us, Open Trade Technology Ltd, the owner and provider of this Website.

3. When you visit the Website, and before your Website places cookies on your computer, you will be presented with a message bar requesting your consent to set those cookies. By giving your consent to the placing of cookies, you are enabling us to provide a better experience and service. You may, if you wish, deny consent to the placing of these cookies; however, certain features of the Website may not function fully or as intended.

What Are Cookies?

5. A cookie is a small text file placed on your computer by this Website when you visit certain parts of the Website and/or when you use certain features of the Website.

6. This Website may place and access certain cookies on your computer. We use these cookies to improve your experience of using the Website and to improve our range of products and services.

Types of Cookies

1. Our websites use the following cookies

1. You can find a list of the cookies that we use in the Cookie Schedule.

2. We have carefully chosen these cookies and have taken steps to ensure that your privacy is protected and respected at all times.

How To Control Your Cookies

1. You can choose to enable or disable cookies in your internet browser. By default, most internet browsers accept cookies but this can be changed. For further details, please see the help menu in your internet browser.

2. You can switch off cookies at any time, however, you may lose information that enables you to access the Website more quickly and efficiently.

3. It is recommended that you ensure that your internet browser is up-to-date and that you consult the help and guidance provided by the developer of your internet browser if you are unsure about adjusting your privacy settings.

4. For more information generally on cookies, including how to disable them, please refer to aboutcookies.org. You will also find details on how to delete cookies from your computer.

Changes To This Policy

1. Open Trade Technology Ltd reserves the right to change this Cookie Policy as we may deem necessary from time to time or as may be required by law. Any changes will be immediately posted on the Website and you are deemed to have accepted the terms of the Cookie Policy on your first use of the Website following the alterations.

Contact Details

1. The Website is owned by Open Trade Technology Ltd incorporated in England and Wales with registered number 14583521 whose registered office is at 3rd Floor, 1 Ashley Road, Altrincham, Chesire, WA14 2DT, England.

2. You may contact us by emailing contact@open-trade.io.

Cookie Schedule

Below is a list of the cookies that we use. We have tried to ensure this is complete and up to date, but if you think that we have missed a cookie or there is any discrepancy, please let us know.

Making a Withdrawal Request

Making a withdrawal request in the USD Money Market Fund Vault is a simple process.

1. Select the blockchain network you want to access the vault on

2. Connect your whitelisted wallet to the OpenTrade app

3. Select the USD Money Market Fund Vault

4. Click "Withdraw"

5. Input the amount you'd like to withdraw

6. Click "Submit Withdrawal Request"

7. Approve in your wallet

8. After the Withdrawal Processing Time, USDC will automatically be sent back to your wallet and the corresponding amount of tokens will be burned.

User Guide

Withdrawal Processing Time

The Withdrawal Processing Time is the number of business days before a withdrawal will be repaid into your wallet.

Withdrawal Cut-Off Time

The Withdrawal Cut-Off Time is the time in UTC before which withdrawal requests must be made to be considered same day. For withdrawals requests made before the cut-off time, they will be considered same day requests. For withdrawal requests made after the cut-off of time, they will be considered to have been made the next business day.

For withdrawal requests made on Non-Business Days (e.g. weekends and bank holidays), they will be considered to have been made on the next business day.

Summary

The flexible term EURC Vault aims to provide lenders with the risk free rate of return for EUR. It's collateral portfolio consists exclusively of highly liquid Euro sovereign bonds and EUR Money Market Funds.

Interest accrues and compounds daily and lenders can move in and out at anytime. Withdrawals made before the cut off time are repaid same day, typically within 6 hours.

Summary

The high yield corporate bond vault aims to track the investment results of an index composed of USD-denominated, high yield corporate bonds with remaining maturities of less than five years. Interest accrues and compounds daily and lenders can move in and out at anytime. Withdrawals made before the cut off time are in one business day.

Making a Loan

Making a loan into a Flexible Term EURC Vault is a simple process. After you've been onboarded, the steps are as follows:

1. Connect your whitelisted wallet

2. Select the Flexible Term EURC Vault

3. Click "Invest"

4. Input an amount you'd like to lend and click "Approve Spending Cap"

5. Approve the spending cap in your wallet

6. Confirm the amount and click "Invest"

7. USDC will be transferred from your wallet & you will receive vault tokens at the current exchange rate.

8. The transfer will show as "Pending Advance" until the Advance Processing Time lapses, after which time it will begin accruing interest.

Advance Processing Time

The Advance Processing Time is the number of business days before you will begin accruing interest.

Until the Advance Processing Time has lapsed, the advance amount will show as pending. Once the Advance Processing Time lapses, the principal amount will accrue interest every day.

Advance Cut-Off Time

The Advance Cut-Off Time is the time in UTC that loans must be made to be considered same day. For loans made before the cut-off time, they will be considered same day. For loans made after the cut-off of time, they will be considered to have been made the next business day.

For loans made on Non-Business Days (e.g. weekends and banking holidays), they will be considered to have been made on the next business day.

Summary

In the Flexible Term High Yield Corporate Bond Vault, Lender's returns (and losses) are pegged to the performance of the underlying vault collateral (SHYG) via a Collateral Rate, which is reflected on-chain as an exchange rate between USDC and XHYC.

The vault also displays an indicative interest rate, which is the average yield to maturity for the ETF's underlying bond holdings. The indicative interest rate is used to provide Lender's an idea of the types of returns the ETF could experience if all its holdings were held to maturity.

Actual returns (and losses) are determined via the Collateral Rate which reflects the total return of the underlying ETF shares and is expressed on-chain as an exchange rate between USDC and XHYC.

Collateral Rate

The collateral rate determines the gains (and losses) of a Lender's loan on a daily basis.

It is calculated by applying the sum of income received by the Borrower with respect to the Collateral (including any amount of net profit realised through the sale or redemption of the Collateral) with respect to that Loan and any increases to the market value of the Collateral (and deducting any decrease to the market value of the Collateral, such that the Collateral Rate may be negative). The collateral rate is calculated daily and expressed as an annual percentage yield (APY).

The following calculation is used to determine the Collateral Rate

Daily Collateral Rate* =

(Collateral value T1 - Collateral value T0) + Income**​

—------------------------------------------------------------------— x100 - Daily Fee

Collateral value T0

*If “ending value” is lower than the initial value, the daily interest can be negative.

**Income refers to any coupons or dividend payments actually paid (not declared) onto the Borrower's account

Collateral Value

The collateral value is calculated by the Investment Advisor using the following formula:

(Total Number of Collateral Shares on T-1) x ( Collateral Share Price on T-1)

Collateral share price is based on publicly available data sourced via Bloomberg Terminal.

Exchange Rate

In the Flexible Term High Yield Corporate Bond Vault, the lender is issued vault tokens (XHYC) based on an exchange rate updated each business day by the Investment Advisor. The exchange rate is a on-chain reflection of the Collateral Rate. This enables vault tokens to track the following values:

1. Estimated value of the vault's collateral

Total Vault Tokens Outstanding * Exchange Rate

2. Portion of the vault collateral a specific lender has a claim over

Vault Token Balance / Total Vault Tokens Outstanding

3. Estimated amount a lender would get for withdrawing at any point in time.

Vault Token Balance * Exchange Rate

Calculation and Setting the Exchange Rate

The Investment Advisor updates the exchange rate at 9:30am GMT each day (T0) based on US market close price for the prior day (T-1).

The calculation for the exchange rate is as follows:

Exchange Rate = [ (Total Number of Collateral Shares) x ( Collateral Share Price) ] + (Cash) ]-(Daily Fees) / Total Tokens Outstanding

Example

Collateral:

• 1,000,000.00 SHYG Shares @ $90.00 pps

• $1,000,000 cash

Closing Price T-1: $90.00

Total Vault Tokens Outstanding: 10,000,000

[ (1,000,000.00 SHYG Shares x $90.00 pps) + $1,000,000.00 ] – ($1801.80) / 10,000,0000 ]

Exchange Rate = 9.0998198200

Indicative Interest Rate

The indicative rate represents the “target yield” of the product, but not a committed rate to be paid to the client.

For the HYCB Vault, the Indicative interest rate is the Weighted Average Yield to Maturity of the ETF, less OpenTrade fees. Targeting between 6 and 8% p.a.

Fees

The total fees charged for the product is 0.50% per annum. This is translated into a Daily Fee and deducted from the exchange rate, such that fees are accrued off-chain and not explicitly paid by Lenders.

The breakdown is as follows

Example of Fee Calculations

We convert 0.50% p.a. into a per business day fee:

1/252 * 0.50% = 0.0000198

We multiply that by the collateral value each day:

Collateral Value * 0.0000198 = Daily Fees

And then subtract Daily Fees from the exchange rate before fees

Collateral Value – Daily Fees / Total Outstanding Vault Tokens

Open Trade Technology Ltd Terms of Service

1. About us

   1. Company details. Open Trade Technology Ltd (company number 14583521) (we and us) is a company registered in England and Wales and our registered office is at Unit 12 Greenway Farm Bath Road, Wick, Bristol, United Kingdom, BS30 5RL.

   2. Contacting us. To contact us, email us at contact@open-trade.io. How to give us formal notice of any matter under the Contract is set out in section 15.2.

2. Our platform

   1. We have developed a series of protocols, tools and systems (collectively, the Platform) to enable and support Supported Digital Asset lending transactions between borrowers (Borrowers) and lenders (Lenders) (Lenders and Borrowers together, Users and you).

   2. From time to time, Borrowers and Lenders may enter into transactions in which a Lender will transfer to a Borrower Supported Digital Assets with an agreement that the Borrower will transfer to the Lender Supported Digital Assets Equivalent to such Supported Digital Assets on a fixed date, subject to the terms and conditions of a master loan agreement entered by the Borrower and Lender (Master Loan Agreement). Each such transaction between a Borrower and a Lender (a Loan) shall be subject to the terms of the Master Loan Agreement. Certain specific terms of each Loan shall be set out in a confirmation document in the form required by the Master Loan Agreement (Loan Confirmation).

   3. The Platform supports transactions underlying the Loans of Supported Digital Assets through the Supported Blockchain Networks with Supported Digital Wallets only. We do not own or control the Supported Blockchain Networks or Supported Digital Wallets and are not responsible for their operation. We may publish lists of Supported Digital Assets, Supported Blockchain Networks and Supported Digital Wallets, and may update these lists from time to time in our sole discretion. It is your responsibility to review any changes to the lists of Supported Digital Assets, Supported Blockchain Networks and Supported Digital Wallets.

   4. Nothing set out or otherwise included in the Platform is intended to be or constitutes financial advice or any other sort of advice. You acknowledge and agree that the decision to use this Platform, agree a Master Loan Agreement, or participate in a Loan or any Supported Digital Asset Transfers are made by you in your sole discretion.

3. Our contract with you

   1. Our contract. These terms and conditions (Terms) apply to the use by you and supply by us of the Platform (Contract). They apply to the exclusion of any other terms that you seek to impose or incorporate, or which are implied by law, trade custom, practice or course of dealing.

   2. Entire agreement. The Contract is the entire agreement between you and us in relation to its subject matter. You acknowledge that you have not relied on any statement, promise or representation or assurance or warranty that is not set out in the Contract.

   3. Related services. We may provide Borrowers with additional services pertaining to the Platform (Platform Services) but which are separate and distinct from the licence we are granting to use the Platform under these Terms. The terms governing our provision of Platform Services will be set out in a separate agreement (each, a Platform Service Agreement).

   4. Relationship between these Terms and the Master Loan Agreement. We are not a party to the Master Loan Agreements and are not issuing, offering, marketing or otherwise involved in any Loan as a Borrower, Lender or otherwise. We do not recommend or endorse any Loan or any Master Loan Agreement. You acknowledge and agree that these Terms solely govern your use of the Platform. The terms governing each Loan and any related transactions are as set out in the Master Loan Agreement.

   5. Language. These Terms and the Contract are made only in the English language.

   6. Your copy. You should print off a copy of these Terms or save them to your computer for future reference.

4. Licence to use the Platform

   1. In consideration of payment by the Borrower of the Platform Service Fee and you agreeing to abide by the terms of this Contract, we grant to you a limited, non-exclusive, non-transferable, revocable licence, without the right to sublicense, to access and use the Platform on the terms of this Contract, solely to facilitate the giving and receiving of Loans and related transactions in accordance with the Master Loan Agreement (Purpose).

   2. You shall:

      1. provide us with: (i) all necessary co-operation in relation to this Contract; and (ii) all necessary access to such information as may be required by us, each to the extent required to provide the Platform including but not limited to Licensee Data, security access information and configuration services;

      2. without affecting your other obligations under this Contract, comply with: (i) all Applicable Laws and regulations with respect to your activities under this Contract; and (ii) the terms of any Platform Service Agreement and Master Loan Agreement; and

      3. ensure that your network and systems comply with the relevant specifications provided by us from time to time.

   3. You shall have sole responsibility for the legality, reliability, integrity, accuracy and quality of all Licensee Data. You hereby license us to use the Licensee Data for:

      1. the proper provision of the Platform;

      2. the purposes set out in our privacy policy available here to the extent the Licensee Data consists of any personal data.

      3. the Purpose; and

      4. all other purposes relevant to the proper exercise of our rights and obligations under this Contract.

5. Third party services.

   1. The Platform may contain: (i) software licensed to us by third parties; or (ii) links to third party services and products (such as your Supported Digital Wallet) (Third Party Products). You agree to comply with the terms and conditions pertaining to any such Third Party Products.

6. Accessing the Platform

   1. Registration. To access the Platform, you must have: (i) registered for an account; (ii) linked your Supported Digital Wallet to such account; and (iii) entered into the required Master Loan Agreement (Registration Process).

   2. Eligibility. You represent and warrant that:

      1. you have the full power, authority and right to enter into this Contract (and if you are an Authorised User acting on behalf of a Borrower or Lender, you have all necessary authorizations to enter this Contract on behalf of such Borrower or Lender);

      2. you are and shall remain duly organized, validly existing and in good standing under the laws of the jurisdiction in which you are incorporated, registered or established;

      3. you are and shall remain in compliance with all Applicable Laws relating to this Contract, the Master Loan Agreement, and, if applicable, the Platform Service Agreement, and the operation of your business;

      4. you are not organized in or operating under the jurisdiction of Iran, Cuba, North Korea, Syria or the Crimean Region of the Ukraine, or any other jurisdiction to which the United States, United Kingdom or European Union embargoes goods or imposes similar sanctions;

      5. you are not listed in any sanctions list or equivalent list maintained by the governments of the United States or United Kingdom, the European Union or the United Nations and shall not engage in business or other transactions with any such individual or entity on any such sanctions list;

      6. you do not and shall not use a virtual private network or any other software, tool or technology to anonymize your identity or circumvent any restrictions we impose in connection with the operation of the Platform;

      7. you shall not undertake any illegal activity or take any actions which may constitute illegal activity or facilitate the illegal activity of a third party;

      8. you have established and will maintain anti-money laundering programs consistent with any and all Applicable Law;

      9. you and all Authorized Users have appropriate training, knowledge, expertise and skill to make informed decisions regarding the Loans and trading Supported Digital Assets;

      10. you shall at all times comply with these Terms when using the Service; and

      11. you are a person falling within the following categories:

          1. investment professional within the meaning of article 19(5) of the FSMA (Financial Promotion) Order 2005 (the "FPO") (being (a) an authorised person, (b) an exempt person where the communication relates to a controlled activity which is a regulated activity in relation to which the person is exempt, (c) any other person (i) whose ordinary activities involve him in carrying on the controlled activity to which the communication relates for the purposes of a business carried on by him; or (ii) who it is reasonable to expect will carry on such activity for the purposes of a business carried on by him, (d) a government, local authority or an international organisation or € to certain restricted persons who are directors, officers or employees of a person falling within categories (a) to (d));

          2. certified high net worth individuals within the meaning of article 48 of the FPO (being an individual who has signed a statement complying with Part I of Schedule 5 to the FPO within 12 months prior to the date of accessing this website, confirming that at least one of the following applies (a) they have earned at least £100,000; or (b) held net assets to the value of at least £250,000 (not including primary residence or any loan secured on that residence, or rights under certain insurance contracts or pension arrangements), in each case throughout the financial year immediately preceding the date of the statement);

          3. high net worth companies, unincorporated associations within the meaning of Article 49 of the FPO (being (a) any body corporate which has, or which is a member of the same group as an undertaking which has, a called-up share capital or net assets of not less than (i) if the body corporate has more than 20 members or is a subsidiary undertaking of an undertaking which has more than 20 members, £500,000; or (ii) otherwise £5 million, (b) any unincorporated association or partnership which has net assets of not less than £5 million, (c) the trustee of a high value trust (as defined in the FPO), (d) any person (“A”) whilst acting in the capacity of director, officer or employee of a person (“B”) falling within any of subparagraphs (a) to (c) where A’s responsibilities, when acting in that capacity, involve him in B’s engaging in investment activity, (e) any person to whom the communication may otherwise lawfully be made);

          4. certified sophisticated investors within the meaning of article 50 of the FPO (being an individual who has a certificate signed and dated, not more than three years before the date of accessing this website, by an FCA-authorised person stating that the investor is sufficiently knowledgeable to understand the risks associated with that description of investment and the investor has signed within 12 months prior to the date of accessing this website a declaration that he/she is a certified sophisticated investor who may receive exempt promotions);

          5. self certified sophisticated investors within the meaning of article 50A of the FPO (being an individual who has signed a statement complying with Part II of Schedule 5 to the FPO within 12 months prior to the date of accessing this website, stating that at least one of the following applies: (a) they are a member of a network or syndicate of business angels and have been so for at least six months prior to the date of accessing this website; (b) they have made more than one investment in an unlisted company in the two years prior to the date of accessing this website; (c) they are working, or have worked in the two years prior to the date of accessing this website, in a professional capacity in the private equity sector, or in the provision of finance for small and medium enterprises; or (d) they are currently, or have been in the two years prior to the date of accessing this website, a director of a company with an annual turnover of at least £1 million); or

      12. any other person who may lawfully view this website,

      collectively, the Eligibility Requirements.

   3. Verification. You must provide us with complete and accurate information in response to requests made as part of our on-boarding and due diligence process, or as may be otherwise necessary for us to complete the Registration Process or verify the Eligibility Requirements. We reserve the right to delay, suspend or otherwise cancel the Registration Process if you do not provide us with the required information.

   4. Third party requests. You acknowledge and agree that we may make inquiries with third parties to: (i) complete the Registration Process; (ii) verify the Eligibility Requirements; or (iii) as otherwise necessary to prevent fraudulent or illegal activities on the Platform.

   5. Authorised Users. You will limit access to the Platform to Authorised Users, and shall be solely responsible for all actions of any persons, authorized or unauthorised, who gain access to the Platform through your account (Unauthorised Access), unless solely caused by our gross negligence or wilful misconduct.

   6. Account suspension and closure. We may suspend your access to the Platform if: (i) you cease to meet the Eligibility Requirements or we have reasonable belief to consider that you no longer meet the Eligibility Requirements; or (ii) if we reasonably consider suspension of your account necessary to protect us, the Platform, our systems, Supported Digital Assets, other Users or any third party (Permitted Suspension). We will notify you if we intend to suspend your account, and as soon as reasonably practicable shall provide you with the opportunity to reinstate such your account.

   7. Account management. It is your responsibility to ensure that any and all data and information you provide us as part of the Registration Process, in respect of your contact information and any and all Licensee Data is accurate and up to date (Account Data).

   8. Downtime. You acknowledge and agree that all or part of the Platform may occasionally be unavailable due to: (i) scheduled maintenance and upgrades; or (ii) unscheduled downtime due to Disruptions (Downtime).

7. Using the Platform

   1. Loan terms. Loans shall be agreed between the Borrower and the Lender in accordance with the Master Loan Agreement and any Loan Confirmations issued thereunder. The terms of any such Loan as set out in the Master Loan Agreement and corresponding Loan Confirmation may be displayed through the Platform interface. If there is a discrepancy between the Loan terms as set out in the Platform compared to what is set out in the Master Loan Agreement and the applicable Loan Confirmation, the terms set out in the Master Loan Agreement and the applicable Loan Confirmation shall prevail.

   2. Supported Digital Asset ownership and custody. Supported Digital Asset Custody. We do not hold in our custody any of your Supported Digital Assets. Balances displayed on the Platform are balances of Supported Digital Assets as set out in your Supported Digital Wallet, which at all times remains under your full control. We do not represent or treat assets in your Supported Digital Assets Wallets as our assets on our balance sheet.

   3. Supported Digital Asset Transfers. You may request transfers of Supported Digital Assets to and from your Supported Digital Wallet through the Platform where such requests: (i) have been submitted in accordance with these Terms and the Master Loan Agreement; or (ii) as may be set out in the applicable Loan Confirmation (Supported Digital Asset Transfers). When prompted, you will need to authorize such Supported Digital Asset Transfers through your Supported Digital Wallet. Once a Supported Digital Asset Transfer is authorized and submitted to the applicable Supported Blockchain Network, the transfer will be in a pending state until a sufficient number of confirmations occur on the applicable Supported Blockchain Network. Funds associated with pending Supported Digital Asset Transfers will be designated accordingly and will not be included in the balance of your Supported Digital Wallet.

   4. Reversals. After a request for a Supported Digital Asset Transfer has been requested by you, we cannot reverse such Supported Digital Asset Transfer.

   5. Authority. You acknowledge and agree that:

      1. you are solely responsible for any and all actions you take on or instructions you submit to the Platform, including, but not limited to, Supported Digital Asset Transfers;

      2. any and all actions you take on or instructions you submit to the Platform have been taken or submitted in your sole discretion,

      (collectively, User Platform Actions).

   6. Forks. You acknowledge that the protocols underlying the Supported Blockchain Networks are subject to sudden changes in their operating rules (Forks), and that any such Forks may materially affect the value or other characteristics of the Supported Digital Assets you have stored in your Supported Digital Wallet. If there is a Fork, we may temporarily suspend the Platform and Supported Digital Asset Transfers with or without advance notice, and in our sole discretion we may decide whether or not to support or cease supporting either branch of the Fork (Forking Response). Any Digital Assets on a branch of a Fork that we opt to support shall be deemed Supported Digital Assets, provided always that we may not be able to execute Supported Digital Asset Transfers in respect of such assets.

   7. Restrictions.

      1. Except as expressly set out in these Terms or as permitted by Applicable Law which is incapable of exclusion by agreement between the parties, you shall not:

         1. attempt to copy, modify, duplicate, create derivative works from, frame, mirror, republish, download, display, transmit, or distribute all or any portion of the Platform in any form or media or by any means; or

         2. attempt to de-compile, reverse compile, disassemble, scrape, reverse engineer or otherwise reduce to human-perceivable form all or any part of the Platform;

         3. access all or any part of the Platform to build a product or service which competes with the Platform;

         4. other than as strictly necessary for the Purpose, use the Platform to provide services to third parties; license, sell, rent, lease, transfer, assign, distribute, display, disclose, or otherwise commercially exploit, or otherwise make the Platform available to any third party except the Authorised Users; or

         5. attempt to obtain, or assist third parties in obtaining, access to the Platform, other than as provided under these Terms.

      2. You shall not use the Platform to:

         1. use the Platform to distribute or transmit to us or any other User any Viruses or Vulnerability and shall implement procedures in line with Good Industry Practice to prevent such distribution or transmission;

         2. use the Platform to store, send, request or receive Digital Assets which are not Supported Digital Assets in your Supported Digital Wallet through the Platform or if you otherwise use the Platform for Digital Assets which are not Supported Digital Assets;

         3. link a Digital Wallet which is not a Supported Digital Wallet to your account;

         4. use the Platform to store, access, publish, disseminate, distribute or transmit any material which:

            1. is unlawful, harmful, threatening, defamatory, obscene, infringing, harassing or racially or ethnically offensive;

            2. facilitates illegal activity (including, but not limited to, money laundering, fraud and terrorist financing);

            3. depicts sexually explicit images;

            4. promotes unlawful violence;

            5. is discriminatory based on race, gender, colour, religious belief, sexual orientation, disability; or

            6. is otherwise illegal or causes damage or injury to any person or property,.

         and we reserve the right, on no less than thirty (30) days’ prior written notice to you, such notice specifying the breach of this condition and requiring it to be remedied within the thirty (30) day period, to disable your access to the Platform for the duration of time that the breach remains unremedied.

   8. Source code. You acknowledge that you have no right to have access the Platform in source code form.

   9. Your obligations. You shall:

      1. cooperate with us in all matters relating to the Platform;

      2. promptly provide, and cause any third party under your control to promptly provide, us with such information and materials: (i) we may reasonably require in order to supply the Platform; (ii) pertaining to your policies, procedures, audits and general business activities; (iii) related your use of the Platform and any related activities; (iv) relating to the identity of Authorised Users; (v) as may be required by Applicable Law, or at the request of any regulatory authority or financial institution, and in each case ensure that such information is complete and accurate in all material respects;

      3. supervise and control use of the Platform and ensure they are used by your Authorised Users only in accordance with these Terms; and

      4. fulfil your obligations pursuant to the Master Loan Agreement and, if applicable, any Platform Service Agreement; and

      5. comply with all applicable technology control or export laws and regulations

8. Fees and payment

   1. In consideration of us providing the Platform, Borrowers must pay us the fees in accordance with the Master Loan Agreement (Platform Service Fee)

9. Intellectual property rights

   1. All intellectual property rights in or arising out of or in connection with the Platform (other than intellectual property rights in any materials provided by you) will be owned by us.

   2. You acknowledge that you have no rights in, or to, the Platform other than the right to use it strictly in accordance with these Terms.

10. Limitation of liability: YOUR ATTENTION IS PARTICULARLY DRAWN TO THIS SECTION.

    1. Except as expressly and explicitly provided in this Contract:

       1. you assume sole responsibility for the results obtained from your use of the Platform and for conclusions drawn from such use. We shall have no liability for any damaged caused by errors or omissions in any information, instructions or scripts provided to us by you in connection with the Platform or any actions taken by us at your direction;

       2. we shall have no liability to you for any damage or loss:

          1. arising out of or in connection with your use of Third Party Products whether in connection with the Platform or otherwise;

          2. if you mistakenly send, request or receive Digital Assets which are not Supported Digital Assets in your Supported Digital Wallet through the Platform or if you otherwise use the Platform for Digital Assets which are not Supported Digital Assets;

          3. resulting from your Supported Digital Asset Transfers once such Supported Digital Asset Transfer is: (i) requested by you; or (ii) submitted to the applicable Supported Blockchain Network;

          4. in relation to Supported Digital Asset Transfers sent to or received from an incorrect or mistaken party or sent or received with inaccurate instructions;

          5. arising out of or in connection with the Master Loan Agreement or any Loan Confirmation;

          6. arising out of or in connection with the operation of the Supported Blockchain Networks or your Supported Digital Wallet;

          7. arising out of or in connection with a Fork or a Forking Response;

          8. arising out of or in connection with User Platform Actions;

          9. arising in connection with Downtime;

          10. arising out of or in connection with Unauthorised Access;

          11. arising out of or in connection with a Permitted Suspension;

          12. arising out of or in connection with inaccurate Account Data;

          13. arising out of or in connection with our termination of this Contract in accordance with its terms;

       3. all warranties, representations, conditions and all other terms of any kind whatsoever implied by statute or common law are, to the fullest extent permitted by applicable law, excluded from this Contract; and

       4. the Platform is provided to you on an "as is" basis.

    2. Nothing in the Contract limits any liability which cannot legally be limited, including liability for:

       1. death or personal injury caused by negligence; and

       2. fraud or fraudulent misrepresentation.

    3. Subject to sections 10.1 and 10.2, we will not be liable to you, whether in contract, tort (including for negligence or breach of statutory duty), misrepresentation, restitution or otherwise, arising under or in connection with the Contract for:

       1. loss of profits;

       2. loss of sales or business;

       3. loss of agreements or contracts;

       4. loss of anticipated savings;

       5. loss of use or corruption of software, data or information;

       6. loss of or damage to goodwill; and

       7. any special, indirect or consequential loss costs, damages, charges or expenses however arising under this Contract.

    4. Subject to sections 10.1 and 10.2, our total liability to you arising under or in connection with the Contract, whether in contract, tort (including negligence or breach of statutory duty), misrepresentation, restitution or otherwise, will be limited to 50% of the total Fees paid under the Contract.

    5. Unless you notify us that you intend to make a claim in respect of an event within the notice period, we shall have no liability for that event. The notice period for an event shall start on the day on which you became, or ought reasonably to have become, aware of the event having occurred and shall expire six (6) months from that date. The notice must be in writing and must identify the event and the grounds for the claim in reasonable detail.

    6. This section 10 will survive termination of the Contract.

11. Indemnity

    1. You shall defend, indemnify and hold harmless us (and each of our officers, directors, employees and agents) against claims, actions, proceedings, losses, damages, expenses and costs (including without limitation court costs and reasonable legal fees) arising out of or in connection with: (i) your use of the Platform; or (ii) your breach of the Master Loan Agreement or Platform Service Agreement.

12. Confidentiality

    1. We each undertake that we will not at any time during the Contract, and for a period of five years after termination of the Contract, disclose to any person any confidential information concerning one another's business, affairs, customers, clients or suppliers, except as permitted by section 12.2.

    2. We each may disclose the other's confidential information:

       1. to such of our respective employees, officers, representatives, subcontractors or advisers who need to know such information for the purposes of exercising our respective rights or carrying out our respective obligations under the Contract. We will each ensure that such employees, officers, representatives, subcontractors or advisers comply with this section 12; and

       2. as may be required by law, a court of competent jurisdiction or any governmental or regulatory authority.

    3. Each of us may only use the other's confidential information for the purpose of fulfilling our respective obligations under the Contract.

13. Termination, consequences of termination and survival

    1. Termination. Without limiting any of our other rights, we may suspend the performance of the Platform, or terminate the Contract with immediate effect by giving written notice to you if:

       1. you commit a material breach of any term of the Contract, Master Loan Agreement or Platform Service Agreement and (if such a breach is remediable) fail to remedy that breach within ten (10) days of you being notified in writing to do so;

       2. you cease to meet the Eligibility Requirements;

       3. the Master Loan Agreement is terminated;

       4. you fail to pay any amount due under the Contract on the due date for payment;

       5. you take any step or action in connection with you entering administration, provisional liquidation or any composition or arrangement with your creditors (other than in relation to a solvent restructuring), applying to court for or obtaining a moratorium under Part A1 of the Insolvency Act 1986, being wound up (whether voluntarily or by order of the court, unless for the purpose of a solvent restructuring), having a receiver appointed to any of your assets or ceasing to carry on business or, if the step or action is taken in another jurisdiction, in connection with any analogous procedure in the relevant jurisdiction;

       6. you suspend, threaten to suspend, cease or threaten to cease to carry on all or a substantial part of your business; or

       7. your financial position deteriorates to such an extent that in our opinion your capability to adequately fulfil your obligations under the Contract has been placed in jeopardy.

    2. Consequences of termination

       1. On termination of the Contract you must cease using the Platform.

       2. Termination of the Contract will not affect your or our rights and remedies that have accrued as at termination.

    3. Survival. Any provision of the Contract that expressly or by implication is intended to come into or continue in force on or after termination will remain in full force and effect.

14. Events outside our control

    1. We will not be liable or responsible for any failure to perform, or delay in performance of, any of our obligations under the Contract that is caused by any act or event beyond our reasonable control (Event Outside Our Control).

    2. If an Event Outside Our Control takes place that affects the performance of our obligations under the Contract:

       1. we will contact you as soon as reasonably possible to notify you; and

       2. our obligations under the Contract will be suspended and the time for performance of our obligations will be extended for the duration of the Event Outside Our Control. We will arrange a new date for performance of the Services with you after the Event Outside Our Control is over.

    3. You may cancel the Contract affected by an Event Outside Our Control which has continued for more than thirty (30) days. To cancel please contact us.

15. Communications between us

    1. When we refer to "in writing" in these Terms, this includes email.

    2. Any notice or other communication given by one of us to the other under or in connection with the Contract must be in writing and be delivered personally, sent by pre-paid first class post or other next working day delivery service, or email.

    3. A notice or other communication is deemed to have been received:

       1. if delivered personally, on signature of a delivery receipt or at the time the notice is left at the proper address;

       2. if sent by pre-paid first class post or other next working day delivery service, at 9.00 am] on the second working day after posting; or

       3. if sent by email, at 9.00 am the next working day after transmission.

       4. In proving the service of any notice, it will be sufficient to prove, in the case of a letter, that such letter was properly addressed, stamped and placed in the post and, in the case of an email, that such email was sent to the specified email address of the addressee.

       5. The provisions of this section will not apply to the service of any proceedings or other documents in any legal action.

16. General

    1. Assignment and transfer.

       1. We may assign or transfer our rights and obligations under the Contract to another entity but will always notify you in writing or by posting on this webpage if this happens.

       2. You may only assign or transfer your rights or your obligations under the Contract to another person if we agree in writing.

    2. Variation. We may at any time vary or modify these Terms by providing you with an amended copy of such amended terms via our website (Amended Terms). The Amended Terms shall be effective from the date on which they are made available. Your continued use of the Platform following the communication of any such Amended Terms shall be deemed an acceptance of such Amended Terms.

    3. Waiver. If we do not insist that you perform any of your obligations under the Contract, or if we do not enforce our rights against you, or if we delay in doing so, that will not mean that we have waived our rights against you or that you do not have to comply with those obligations. If we do waive any rights, we will only do so in writing, and that will not mean that we will automatically waive any right related to any later default by you.

    4. Severance. Each paragraph of these Terms operates separately. If any court or relevant authority decides that any of them is unlawful or unenforceable, the remaining paragraphs will remain in full force and effect.

    5. Third party rights. The Contract is between you and us. No other person has any rights to enforce any of its terms.

    6. Governing law and jurisdiction. The Contract is governed by English law and we each irrevocably agree to submit all disputes arising out of or in connection with the Contract to the exclusive jurisdiction of the English courts.

    7. Defined terms. The following defined terms are used in these Terms:

       1. Applicable Laws means any law, rule, statute, regulation, by-law, order, protocol, code, decree, directive, requirement, or guideline published or in force which applies to you, your operations or your business.

       2. Authorised Users means the employees, agents and independent contractors of you, your subsidiaries and affiliates, who you authorise to use the Services, the Software and the Documents.

       3. Blockchain Networks means a distributed database or ledger comprised of "blocks" which record transactions and are securely linked using cryptography.

       4. Digital Assets means a cryptographically secured digital representation of value or contractual rights that uses some type of digital system that enables the registration and validation of transactions on a decentralized network in multiple places simultaneously and which can be transferred, stored or traded electronically through a Blockchain Network.

       5. Digital Wallet means a secure location, stored on a Blockchain Network, where a user keeps their public or private keys and passwords.

       6. Disruption means any unscheduled reason the Platform is unavailable, including, but not limited to: (i) equipment malfunctions; (ii) causes beyond our control or that we could not reasonably foresee; (iii) disruptions and temporary or permanent availability of the Supported Blockchain Networks; or (iv) unavailability of third-party service providers or external partners.

       7. Equivalent has the meaning as set out in the Master Loan Agreement.

       8. Good Industry Practice means the exercise of that degree of skill, care, prudence, efficiency, foresight and timeliness as would be expected from a leading company within the relevant industry or business sector

       9. Licensee Data means the data inputted by or on behalf of you, for the purpose of using or facilitating your use of the Platform and any data generated by, or derived from your use of the Platform, whether hosted or stored within the Platform or elsewhere.

       10. Platform Service Fee means the fee payable by the Borrower to us in accordance with the terms of the Master Loan Agreement.

       14. User Subscriptions means the user subscriptions purchased by you, or on your behalf, from us which entitle Authorised Users to access and use the Platform in accordance with this Contract.

       15. Viruses means any thing or device (including any software, code, file or programme) which may prevent, impair or otherwise adversely affect the operation of any computer software, hardware or network, any telecommunications service, equipment or network or any other service or device; prevent, impair or otherwise adversely affect access to or the operation of any programme or data, including the reliability of any programme or data (whether by re-arranging, altering or erasing the programme or data in whole or part or otherwise); or adversely affect the user experience, including worms, trojan horses, viruses and other similar things or devices.

       16. Vulnerability means a weakness in the computational logic (for example, code) found in software and hardware components that, when exploited, results in a negative impact to confidentiality, integrity, or availability, and the term Vulnerabilities shall be construed accordingly.

Making a Loan

Making a loan into the High Yield Corporate Bond Vault is a simple process. After you've been onboarded, the steps are as follows:

1. Select the blockchain network you want to access the vault on

2. Connect your whitelisted wallet

3. Select the High Yield Corporate Bond Vault

4. Click "Invest"

5. Input an amount you'd like to lend and click "Approve Spending Cap"

6. Approve the spending cap in your wallet

7. Confirm the amount and click "Invest"

8. USDC will be transferred from your wallet & you will receive vault tokens at the current exchange rate.

9. The transfer will show as "Pending Advance" until the Advance Processing Time lapses, after which time it will begin accruing interest.

Exchange Rate Calculations - Making a Loan

When stablecoins are lent into the vault, XHYC will be issued to the Lender at the most recent exchange rate based on the following calculation:

Making a Withdrawal Request

Making a withdrawal request in the Franklin Templeton Benji MMF Vault is a simple process.

1. Select the blockchain network you want to access the vault on

2. Connect your whitelisted wallet to the OpenTrade app

3. Select the Franklin Templeton Benji MMF Vault

4. Click "Withdraw"

5. Input the amount you'd like to withdraw

6. Click "Submit Withdrawal Request"

7. Approve in your wallet

8. After the Withdrawal Processing Time, USDC will automatically be sent back to your wallet and the corresponding amount of tokens will be burned.

User Guide

Withdrawal Processing Time

The Withdrawal Processing Time is the number of business days before a withdrawal will be repaid into your wallet.

Withdrawal Cut-Off Time

The Withdrawal Cut-Off Time is the time in UTC before which withdrawal requests must be made to be considered same day. For withdrawals requests made before the cut-off time, they will be considered same day requests. For withdrawal requests made after the cut-off of time, they will be considered to have been made the next business day.

For withdrawal requests made on Non-Business Days (e.g. weekends and bank holidays), they will be considered to have been made on the next business day.

Making a Loan

Making a loan into the Franklin Templeton Benji MMF Vault is a simple process. After you've been onboarded, the steps are as follows:

1. Select the blockchain network you want to access the vault on

2. Connect your whitelisted wallet

3. Select the Franklin Templeton Benji MMF Vault

4. Click "Invest"

5. Input an amount you'd like to lend and click "Approve Spending Cap"

6. Approve the spending cap in your wallet

7. Confirm the amount and click "Invest"

8. USDC will be transferred from your wallet & you will receive vault tokens at the current exchange rate.

9. The transfer will show as "Pending Advance" until the Advance Processing Time lapses, after which time it will begin accruing interest.

Advance Processing Time

The Advance Processing Time is the number of business days before you will begin accruing interest.

Until the Advance Processing Time has lapsed, the advance amount will show as pending. Once the Advance Processing Time lapses, the principal amount will accrue interest every day.

Advance Cut-Off Time

The Advance Cut-Off Time is the time in UTC that loans must be made to be considered same day. For loans made before the cut-off time, they will be considered same day. For loans made after the cut-off of time, they will be considered to have been made the next business day.

For loans made on Non-Business Days (e.g. weekends and banking holidays), they will be considered to have been made on the next business day.

Summary

The Managed DeFi Yield Vault aims to provide stablecoin holders with optimized returns by leveraging a diversified basket of blue-chip decentralised finance (DeFi) protocols. The strategy focuses on low-risk, high-liquidity DeFi assets to generate consistent and sustainable yield. The vault dynamically distributes funds across a variety of established DeFi platforms to maximize returns while maintaining the underlying stability of the invested capital.

Vault Strategy

Multi-Protocol Stablecoin Basket

This DeFi Yield Vault aims to provide stablecoin holders with optimized returns by leveraging a diversified basket of yield generating, blue-chip decentralized finance (DeFi) assets. The strategy focuses on established, high-liquidity DeFi assets to generate consistent and sustainable yield. The vault dynamically distributes funds across a variety of established DeFi platforms to maximize returns while maintaining the underlying stability of the invested capital.

Core Components

1. Stablecoin Allocation:

   • The vault exclusively accepts stablecoins as deposits to ensure minimal price volatility, providing a safe and predictable environment for yield generation.

   • Stablecoins are used as the base asset for all investments to maintain consistent value and minimize the risk of significant price fluctuations.

2. Basket of Blue-Chip DeFi Protocols:

   • The vault deploys funds across a curated selection of top-tier, blue-chip DeFi protocols with proven track records. These protocols have demonstrated a robust history of security, liquidity, and yield generation. Examples include lending platforms (Compound, Aave, Morpho, Spark), automated market makers (Uniswap, Curve), and yield farming strategies (Yearn Finance, Convex Finance).

   • Each protocol is assessed for risk-reward metrics, protocol governance stability, and ecosystem growth potential to ensure a balanced approach to yield generation.

3. Dynamic Rebalancing:

   • The vault manager rebalances the allocations based on real-time market conditions, yield performance, and liquidity availability. By optimizing exposure to different DeFi protocols, it ensures that funds are directed toward the most efficient yield-generating opportunities.

   • Rebalancing is done periodically to minimize risk and maximize returns, adapting to changes in market volatility or emerging opportunities.

4. Diversification for Risk Mitigation:

   • Funds are spread across various asset types within each protocol, reducing exposure to any single asset or liquidity pool. This diversification lowers the risk of impermanent loss, systemic failures, or adverse market movements that may affect individual protocols.

   • The vault also considers factors like collateralization ratios and liquidity depth, reducing risk exposure in volatile market conditions.

5. Security and Auditing:

   • Security is a top priority, and the vault relies on well-established, audited protocols. Regular third-party audits and protocol updates ensure that potential vulnerabilities are addressed and the funds are safeguarded.

   • Smart contract risks are mitigated through stringent risk assessment, leveraging battle-tested protocols with a history of successful security practices.

6. Transparent Reporting and Performance Tracking:

   • The vault provides transparent reporting of the underlying assets, yield performance, and risk metrics. Users can access real-time data regarding portfolio allocation, interest accrued, and overall performance.

   • Detailed analytics allow users to track the effectiveness of the strategy and make informed decisions about participation.

Key Benefits

• Stable Returns: By using stablecoins as the base asset and allocating to low-risk, high-liquidity DeFi protocols, the vault seeks to generate stable returns without exposing users to excessive volatility.

• Diversification: Exposure to multiple blue-chip DeFi protocols reduces the risk of a single failure impacting the entire portfolio, while maintaining high liquidity and yield potential.

• Hands-Off Yield Generation: With automated rebalancing and interest compounding, users can enjoy a set-and-forget approach, with returns continuously optimized by the strategy.

• Security-First Design: By prioritizing audited, established protocols and performing regular security audits, the vault aims to minimize the risk of smart contract vulnerabilities and safeguard user funds.

• Transparency: Users are provided with comprehensive data on yield performance, asset allocation, and protocol health, allowing them to stay informed and make confident investment decisions.

Interest Rate & Fees

The interest rate, known as the Loan Fee Rate, is the annual rate of interest used to calculate the amount of interest payable to the Lender. In other words, this is the annual interest rate accrued by Lenders each day for Loans made to the Borrower (OpenTrade SPC).

In the Managed DeFi Vault, the interest rate is set as a weighted average of the yield generated by the collateral portfolio, less fees. Principal and interest is compounded daily.

Calculating the Loan Fee Rate

The Loan Fee Rate is calculated by subtracting the Benchmark Rate from Fees, where Fees are defined as the sum of the Advisor Fee, Platform Fee, and Spread.

Example

Calculating the Daily Interest Rate

The Loan Fee Rate is transformed into a Daily Interest Rate each day by taking 1 day of the Loan Fee Rate, compounded daily

Example

Where the Loan Fee Rate = 0.0475 (4.75% APR),

Making a Withdrawal Request

Making a withdrawal request in the Managed DeFi Yield Vault is a simple process.

1. Select the blockchain network you want to access the vault on

2. Connect your whitelisted wallet to the OpenTrade app

3. Select the Managed DeFi Yield Vault

4. Click "Withdraw"

5. Input the amount you'd like to withdraw

6. Click "Submit Withdrawal Request"

7. Approve in your wallet

8. After the Withdrawal Processing Time, USDC will automatically be sent back to your wallet and the corresponding amount of tokens will be burned.

User Guide

Withdrawal Processing Time

The Withdrawal Processing Time is the number of business days before a withdrawal will be repaid into your wallet.

Withdrawal Cut-Off Time

The Withdrawal Cut-Off Time is the time in UTC before which withdrawal requests must be made to be considered same day. For withdrawals requests made before the cut-off time, they will be considered same day requests. For withdrawal requests made after the cut-off of time, they will be considered to have been made the next business day.

For withdrawal requests made on Non-Business Days (e.g. weekends and bank holidays), they will be considered to have been made on the next business day.

Making a Withdrawal Request

Making a withdrawal request in a Flexible Term EURC Vault is a simple process.

1. Select the blockchain network you want to access the vault on

2. Connect your whitelisted wallet to the OpenTrade app

3. Select the Flexible Term EURC Vault

4. Click "Withdraw"

5. Input the amount you'd like to withdraw

6. Click "Submit Withdrawal Request"

7. Approve in your wallet

8. After the Withdrawal Processing Time, EURC will automatically be sent back to your wallet and the corresponding amount of tokens will be burned.

User Guide

Withdrawal Processing Time

The Withdrawal Processing Time is the number of business days before a withdrawal will be due to be repaid into your wallet.

Withdrawal Cut-Off Time

The Withdrawal Cut-Off Time is the time in UTC before which withdrawal requests must be made to be considered same day. For withdrawals requests made before the cut-off time, they will be considered same day requests. For withdrawal requests made after the cut-off of time, they will be considered to have been made the next business day.

For withdrawal requests made on Non-Business Days (e.g. weekends and bank holidays), they will be considered to have been made on the next business day.

Loans can be in one of five different states depending on where they are in the transaction lifecycle. Below is a description of those states:

Loan Cycles

The fixed term US Treasury Bill Vaults conduct thirteen (13) 4-week fixed term loans ("loan cycles"). All loans are secured with eligible collateral as specified in the Master Lending Agreement and Loan Confirmation(s). Eligible collateral for Fixed Term USD Vaults is currently limited exclusively to short-dated US Treasury Bills, USD, and USDC.

Each Loan Cycle has a start date (Loan Commencement Date, T=0) and an end date (the Loan Maturity Date, T=28). There are a number of important date/times and events that occur over the lifecycle of a loan, which are described below.

Weekly Maturity Ladder

Four Fixed Term USD Vaults will be launched with concurrent Loan Cycles that are staggered by one week, creating a maturity ladder such each week a loan is commencing and another is maturing. This will provide Lenders with flexibility to allocate capital according to their liquidity needs.

Investment Window & Settlement Date

USDC must be transferred into the Fixed Term USD Vault during the Investment Window, which closes two (2) calendar days before the Loan Commencement Date. The day and time when the Investment Window closes is known as the Settlement Date. USDC must be transferred on or before the Settlement Date to be included in the loan cycle.

Transfer In Window

After the close of the Investment Window, there is a Transfer In Window that runs for 2 business days. The Transfer In Window accounts for the time required to redeem USDC for USD, purchase the loan collateral, and settle the loan collateral in the Borrower's custody account(s).

At the close of the Transfer In Window, the Borrower will have acquired the loan collateral and the loan will commence.

Loan Commencement and Confirmation

On the Loan Commencement Date, each Lender will be issued a Loan Confirmation via email that will document the legally binding terms of the loan. The Loan Commencement Date is the same day as the Loan Maturity Date for the prior Loan Cycle.

Loan Maturity Date & Roll Date

Withdrawal Requests

There are two types of withdrawal requests in the Treasury Management Product:

Rollover Terminations

"I want to withdraw USDC on the Maturity Date"

Early Withdrawal Requests

"I want to withdraw USDC as soon as possible"

Loan Repayments & Withdrawals

Payment Date

The date on which USDC is due to be delivered to the Lender for Withdrawal is known as the Payment Date. Before or on the Payment Date, USDC will be transferred back into the vault by the Borrower to be withdrawn by Lenders who have issued an Early Withdrawal Request and/or Rollover Termination Notice.

Rollover Termination - Transfer Out Window

For Rollover Terminations, the Payment Date follows the completion of the Transfer Out Window, which is a period of time no longer than two (2) business days following the Loan Maturity date.

Net Inflows and Outflows

Where there is a Net Inflow for the upcoming loan cycle (more USDC has been lent in than is to be withdrawn), the Transfer Out Window will be immediate and USDC can be withdrawn on the Loan Maturity Date.

Where there is a Net Outflow for the upcoming loan cycle (more USDC is to be withdrawn than to be lent in the next cycle), the Transfer Out Window will take no more than two (2) business days. This is to account for the time the Borrower requires to convert USD to USDC and transfer it back into the vault for withdrawal.

Early Withdrawals - Early Withdrawal Processing Period

The Early Withdrawal Processing Period accounts for the time the Borrower requires to sell loan collateral, receive USD, convert USD to USDC, and transfer it back into the vault for withdrawal.

What is Automatic Rollover?

With Automatic Rollover the principal and interest from one loan is automatically compounded and rolled over into a new loan in the next Loan Cycle. The rollover loan will commence on the Roll Date, which coincides with the Maturity Date for the previous loan cycle.

In this way, Lenders can continue to reinvest their principal and interest automatically for as long as they'd like too. If a Lender does not provide a Rollover Termination Notice via the Platform, the principal and interest on the loan(s) will compound and automatically be rolled over into a new 28-day secured loan with the same collateral type.

Issuing a Rollover Termination Notice

If a Lender would like to to terminate Automatic Loan Rollover, they should submit a Rollover Termination Notice via the Platform at least two (2) business days before the Loan Maturity Date.

User Guide - Rollover Termination Notice