Example of gradually increasing margin: - Day 1: 10% deposit required - Month 1: 25% required - Month 2: 50% required - Month 3 (Maturity): 100% required This flexibility allows parties to structure payments based on future cash flows ๐ฐ
๐ The margin requirements increase algorithmically over the contract's lifespan This ensurer both parties deposit their obligation in full by maturity, while allowing for partial collaterization Thus leveraging the time value of money, without the need for a trusted party