Capital Markets
Repo & Collateral
Tri-party repo and collateral management for tokenized trade finance instruments — enabling leverage and liquidity for institutional holders of CLO tranches and receivable pools.
Key figures
How it works
From collateral posting to auto-margin.
Collateral posted
Institutional holders post tokenized CLO tranches, ABCP, or receivable pools as collateral to the tri-party agent smart contract.
Haircut applied
Oracle-derived valuations set haircuts from 2% for AAA CLO tranches to 15% for unrated receivable pools. Dynamic, not static.
Cash disbursed
USDC disbursed atomically against collateral lock. Overnight to 90-day tenors available. Rolling repos supported.
Daily MTM & auto-margin
Oracle-verified daily mark-to-market triggers automatic margin calls or collateral release. Liquidation if thresholds breached.
Capabilities
Full-service collateral management.
Tri-party agent
Smart contract acts as tri-party agent, holding collateral in escrow and managing settlement, substitution, and margin calls autonomously.
Auto-substitution
Collateral givers can substitute eligible assets without unwinding the repo. Smart contract validates eligibility and adjusts haircuts automatically.
Daily MTM via oracle
Oracle-verified mark-to-market pricing every 24 hours. No stale valuations, no manual processes, no disputes about collateral value.
Cross-collateral
Post multiple asset types as collateral against a single repo. Portfolio-level haircuts reflect diversification benefits across asset classes.
Rehypothecation controls
Configurable rehypothecation rights enforced at the smart contract level. Collateral takers can or cannot re-use, per agreement terms.
Margin call automation
Automated margin calls triggered by oracle price feeds. Counterparties have configurable cure periods before liquidation cascades begin.
Comparison
Traditional vs. Caviar
| Traditional | Caviar | |
|---|---|---|
| Valuation | Monthly dealer marks | Daily oracle-verified MTM |
| Margin calls | Manual, next business day | Automated, real-time |
| Settlement | T+1 to T+2 | Atomic DvP |
| Eligible collateral | Govt bonds, IG corporates | CLO tranches, ABCP, receivables |
Use cases
Real-world applications
CLO tranche leverage
Institutional CLO holders repo AAA tranches at 2% haircut to fund mezzanine purchases. Leverage the capital structure efficiently.
Overnight liquidity
Trade finance originators repo receivable pools overnight to manage working capital. Rolling repos provide continuous funding.
ABCP collateral transformation
Transform ABCP holdings into cash for margin requirements elsewhere. Auto-substitution allows dynamic collateral management.
Access repo and collateral.
Leverage your tokenized trade finance holdings. Tri-party repo with oracle-verified valuations and automated margin management.