Structured Trade & Commodity Finance
Borrowing Base Facility
Revolving credit secured by commodity inventories, receivables, and other current assets — the backbone of commodity trading house working capital. Dynamic, asset-linked facilities that grow and contract with your actual position.
Key figures
How it works
From collateral pledge to revolving liquidity.
Pledge and value in real time
Eligible assets enter the pool and are revalued daily by oracle — not monthly by spreadsheet.
Deposit LME warrants, warehouse receipts, or confirmed purchase contracts into the eligible asset pool. Title transfers to Caviar as a commodity purchase, not a loan.
At 17:30 London time, LME Warrant API delivers lot-by-lot positions. Oracle applies cash settlement prices and advance rates to compute the borrowing base in real time.
Draw, repay, and auto-margin
Fully revolving facility with automated deficiency notices and on-chain margin management.
Draw USDC up to available commitment. Freely substitute collateral — swap copper warrants for zinc without unwinding the facility. Repay and redraw as your trading book evolves.
If outstanding exceeds borrowing base, a deficiency notice issues automatically. Three business days to add collateral or reduce exposure. No manual monitoring required.
Capabilities
Built for the commodity trading book.
Daily oracle-based revaluation
LME official cash settlement prices, Platts DECO TLS for petroleum, Fastmarkets for battery metals — applied automatically every business day. No stale monthly appraisals.
Automated margin calls
On-chain MsgMarginCall events trigger when outstanding exceeds borrowing base. Timestamped, verifiable, and dispute-ready. 24-hour collateral response, 48-hour cash margin.
Multi-commodity collateral pools
Single facility spans copper, aluminium, zinc, nickel, lead, and tin. Concentration limits enforced automatically: max 40% single commodity, 20% single brand, 30% single warehouse.
Warehouse receipt integration
Direct API connections to LME-approved warehouses at Jurong Island, Rotterdam, JAFZA, and Fujairah. Warrant numbers, brands, weights, locations, and assay grades verified cryptographically.
Concentration limit enforcement
Smart contract enforces single-commodity, single-brand, single-location, and in-transit limits. Excess over any limit is excluded from the borrowing base — no manual overrides.
LME warrant finance
Purpose-built for metals traders running 200+ lot warrant books. Advance rates calibrated to 30-day VaR: Cu 80–85%, Al 75–80%, Zn 72–78%, Ni 70–75%. Pool-level substitution permitted daily.
Comparison
Traditional vs. Caviar
| Traditional | Caviar | |
|---|---|---|
| Collateral revaluation | Monthly manual appraisals | Daily oracle-driven MTM |
| Margin call process | Phone calls and emails over days | On-chain MsgMarginCall, instant |
| Collateral substitution | 3–5 day amendment process | Same-day pool swap, no unwind |
| Settlement speed | 3–5 business days via SWIFT | <6 seconds atomic DvP |
Use cases
Real-world applications
Merchant house working capital
Trafigura and Vitol-class traders running multi-hundred lot warrant books. $100–500M revolving facilities against diversified LME warrant pools with daily substitution and real-time MTM.
LME warrant finance
Asian LME warehouse operators at Jurong Island and JAFZA. Copper, aluminium, and zinc warrants financed at 75–85% advance with LME Warrant API verification and automated deficiency notices.
Indonesian nickel inventory
NPI and ferronickel held in JIIPE and Morowali bonded zones. 70–75% advance against contained nickel value with SGS-certified assay, RKAB quota verification, and CATL offtake linkage.
Deploy borrowing base facilities.
Start with a single commodity pool. Scale to multi-commodity, multi-warehouse revolving facilities as your trading book grows.