Structured Trade & Commodity Finance
Commodity Repo
Repurchase agreements on commodity assets — LME warrants, warehouse receipts, electronic bills of lading — providing short-term liquidity without selling the underlying position. Two legs of an outright sale, not a secured loan.
Key figures
How it works
From commodity deposit to instant liquidity.
Deposit commodity, receive USDC
Title transfers unconditionally — a genuine sale, not a pledge. USDC disbursed via atomic DvP in under 6 seconds.
Transfer an LME warrant, warehouse receipt, or eBL to Caviar. Title transfers unconditionally — a genuine sale under Singapore Sale of Goods Act, not a pledge.
Caviar purchases at the advance rate (Cu 80–85%, Al 75–80%, Ni 70–75%) applied to the LME cash settlement price. USDC disbursed via atomic DvP in under 6 seconds.
Repurchase or auto-liquidation
Repurchase at the forward price on maturity. If not, Caviar exercises ownership rights — no margin call ambiguity.
On the agreed date (1–90 days), repurchase the same instrument at the forward price: purchase price plus repo rate times days. The position returns to your book.
If repurchase fails or margin call is unmet within 48 hours, Caviar exercises its right as owner to sell the commodity. Proceeds applied to purchase price; surplus returned.
Capabilities
Structured under GMRA with commodity-specific annexes.
LME warrant repo
Warrant registered on LME system, immediately deliverable. Lot-by-lot verification via LME Warrant API: warrant numbers, brands, weights, locations, and exchange-verified assay grades.
Warehouse receipt repo
Physical commodity at LME-approved warehouses (Jurong Island, Rotterdam, JAFZA), FSU tank farms, and bonded zones. SGS or Bureau Veritas certified. Advance rates 72–85% by location type.
eBL repo
Electronic bills of lading for in-transit cargo under Singapore ETA Cap 88 framework. AIS vessel position monitoring confirms voyage progress. Transit advance rates 70–75% with marine cargo insurance.
Auto-margin on price moves
Daily MTM at 17:00 London time via LME close or Platts DECO TLS. 5-day rolling realized volatility spike above 2 sigma triggers intraday margin calls. On-chain MsgMarginCall for auditability.
Tri-party agent settlement
For repos exceeding $10M: independent tri-party agent (Euroclear, Clearstream, or Singapore-licensed custodian) holds warrants, performs daily MTM, and manages substitution rights. 5–15 bps fee.
Cross-commodity collateral
Substitute equivalent-value lots without re-executing the repo. Swap a copper warrant for zinc, provided post-substitution value exceeds outstanding. Registered on Cosmos appchain collateral registry.
Comparison
Traditional vs. Caviar
| Traditional | Caviar | |
|---|---|---|
| Execution | Voice-brokered, phone and email | Automated smart contract execution |
| Documentation | Paper-based, wet signatures | On-chain GMRA with commodity annex |
| Settlement | T+2 via SWIFT and custodian chains | <6 seconds atomic DvP |
| Double-pledge prevention | Manual lien checks, trust-based | MsgPerfectLien on Cosmos appchain |
Use cases
Real-world applications
LME metals trading desks
Short-term liquidity against copper and aluminium warrants at Singapore and Rotterdam warehouses. 1–30 day tenor, 80–85% advance on LME cash. Daily MTM with automated margin calls.
Oil cargo finance
VLCC in-transit repo against electronic bills of lading. Platts Dated Brent pricing via DECO TLS. 70–75% advance with AIS vessel tracking and marine all-risks insurance, Caviar named additional assured.
LNG cargo repo
QFLEX and QMAX LNG cargoes financed at 65–75% of JKM spot per MMBTU. Daily MTM with JKM price indexation. Margin calls triggered when MTM falls below 5% of advance. Standard cargo $8–12M minimum.
Deploy commodity repo.
Execute your first repo in under a minute. Atomic settlement, on-chain collateral registry, and automated margin — from day one.