Capital Partners
Commodity Trading Houses
Mid-market trading houses ($200M–$10B revenue) and commodity hedge funds with physical operations pay 400–600bps on repo while Tier 1 counterparties access SOFR+50bps on identical collateral. The spread is relationship access, not credit risk. Caviar provides Tier 1 financing mechanics on a non-bank rail — commodity repo, BBF, inventory finance, multilateral netting, and a TEE-protected derivatives venue.
Key figures
How it works
Tier 1 financing mechanics, available to the mid-market.
Repo at SOFR+150bps against tokenized warehouse receipts
A warehouse receipt for 500 metric tons of LME-grade copper is the same quality collateral whether it belongs to Glencore or a $2B Singapore house. The pricing differential between Tier 1 and the rest is bank economics, not credit. Caviar reprices it.
Tokenized warehouse receipt locks to the repo buyer via the non-negotiability registry. Same legal protection as a conventional repo, on a 500ms settlement rail. SOFR+150bps narrows the Tier 1 spread.
Borrowing base updates continuously via LME/CME oracle feeds. No more month-end certification lag, no more 45-day-old snapshot when copper moves 3-5% intraday.
Net bilateral exposure, hedge with order-flow privacy
A house trading with 15 counterparties has 15 partially-utilized credit lines. Multilateral netting compresses gross to net. The Private DEX gives you commodity perps without telegraphing position building to every other tape reader.
The CLS-equivalent for trade finance. Net gross bilateral exposure across 15 counterparties; release capital that was permanently over-allocated to gross settlement. 2–5bps on netted notional.
Copper, nickel, lithium perpetuals where your resting orders are not visible to other participants. Equivalent to a dark pool, with one-block atomic settlement and ISDA-on-chain margination.
Capabilities
A non-bank financing source that stays open through the cycle.
Commodity repo, 500ms settlement
Title-transfer secured against tokenized LME, SHFE, and bonded-warehouse receipts. 10–25bps annual fee on facility size; pricing competitive with mid-market bank facilities at Tier 1 mechanics.
Inventory finance with live LTV
Pledge-based credit with 15-second LTV updates from oracle-verified inventory and price feeds. Draw against actual collateral value, not a 45-day-old certification.
Borrowing base facility (revolving)
Continuous availability against dynamic receivables and inventory. Eligibility, concentration limits, and reserves enforced onchain. No monthly bank review window.
Variation margin in one block
Same-day VM calls cleared via USDC settlement instead of phone-and-email cash chase. Eliminates the operational risk that catches mid-market houses on volatile days.
Multilateral netting (CLS-style)
Net gross bilateral exposure across counterparties active across base metals, energy, and agriculturals. Capital previously stuck in bilateral gross flows is released at 2–5bps.
Non-bank facility through the cycle
Available when bank relationship managers are constrained by their own RWA limits or commodity-book pullbacks. Diversification across bank and non-bank counterparties is a Tier 1 risk practice; this is the rail to build it.
Comparison
Traditional vs. Caviar
| Traditional | Caviar | |
|---|---|---|
| Repo pricing (mid-market) | SOFR+400–600bps | SOFR+150bps |
| Borrowing base certification | Monthly + 1–2 week bank review | 15-second oracle refresh |
| Variation margin | Phone-and-email cash chase, T+0 | One-block USDC settlement |
| Counterparty exposure | 15 bilateral gross lines | Multilateral net at 2–5bps |
Use cases
Real-world applications
Singapore copper trader, $1.5B revenue
Head of Structured Finance closes the Tier 1 spread on the overnight repo book. $500M facility at SOFR+150bps saves ~$1.5M/yr on the spread differential alone, with continuous BBF refresh replacing month-end certification.
Commodity hedge fund, physical book
Cayman fund with warehouse receipts and forward purchase agreements. Inventory finance against physical collateral at actual quality pricing, plus copper/nickel perps in a TEE-protected CLOB so position building stays private.
Dubai trading house, financing diversification
CFO building bank-concentration risk hedge after Deutsche/SocGen pullbacks. Sub-facility alongside existing bank lines: line stays open when commodity markets stress the broader sector. Track record built before it is needed.
Stop paying the mid-market financing premium.
Tier 1 mechanics on a non-bank rail: commodity repo at SOFR+150bps, BBF that updates every 15 seconds, multilateral netting, and TEE-protected commodity perps.