Illya Gerasymchuk
Financial & Software Engineer
Example of gradually increasing margin:
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 💰
📈 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