Margin and Fee

Margin Requirements

Initial Margin

To ensure commitment and cover potential fees, both parties must provide initial margin:

• Margin Amount: 2% of the loan amount converted to USDC value

• Purpose: Guarantees trade execution commitment and covers platform fees

• Timing: Required when placing orders in the marketplace

Margin Calculation

Initial Margin = Loan Amount × 2% (converted to USDC)

Transaction Fee Calculation

When orders are successfully matched in Indication Mode, both parties are required to pay platform fees calculated using the following formula:

Transaction Fee = matchedAmount × matchedInterestRate × feeRate × days / 365

Fee Parameters

• matchedAmount: The final matched loan amount in the transaction

• matchedInterestRate: The agreed annual interest rate (expressed as decimal, e.g., 0.03 for 3%)

• feeRate: Platform fee rate that differs by role

• days: Number of days from transaction date to maturity date

Fee Rates by Role

Role	Fee Rate	Description
Lender	0.5%	Applied to lending transactions
Borrower	3%	Applied to borrowing transactions

Integrated Margin and Fee Examples

Example 1: Short-term Loan with Margin Flow

Initial Setup:

• Matched Amount: $100,000 USD

• Interest Rate: 5% per annum

• Duration: 30 days

Step 1 - Initial Margin Requirements:

• Lender Initial Margin: $100,000 × 2% = $2,000 USDC

• Borrower Initial Margin: $100,000 × 2% = $2,000 USDC

Step 2 - Fee Calculations:

• Lender Fee: $100,000 × 0.05 × 0.005 × 30 / 365 = $2.05 USDC

• Borrower Fee: $100,000 × 0.05 × 0.03 × 30 / 365 = $12.33 USDC

Step 3 - Margin Refunds (after fee transfer completion):

• Lender Refund: $2,000 - $2.05 = $1,997.95 USDC

• Borrower Refund: $2,000 - $12.33 = $1,987.67 USDC

Example 2: Long-term Loan with Margin Flow

Initial Setup:

• Matched Amount: $500,000 USD

• Interest Rate: 8% per annum

• Duration: 180 days

Step 1 - Initial Margin Requirements:

• Lender Initial Margin: $500,000 × 2% = $10,000 USDC

• Borrower Initial Margin: $500,000 × 2% = $10,000 USDC

Step 2 - Fee Calculations:

• Lender Fee: $500,000 × 0.08 × 0.005 × 180 / 365 = $98.63 USDC

• Borrower Fee: $500,000 × 0.08 × 0.03 × 180 / 365 = $591.78 USDC

Step 3 - Margin Refunds (after fee transfer completion):

• Lender Refund: $10,000 - $98.63 = $9,901.37 USDC

• Borrower Refund: $10,000 - $591.78 = $9,408.22 USDC

Fee Payment Process

Step-by-Step Process

1. Order Matching: When orders are successfully matched between counterparties

2. Fee Calculation: Platform automatically calculates fees based on matched terms

3. Fee Transfer Requirement: Users must complete fee transfer transaction to TSI

4. Margin Refund: Any unused portion of the margin is returned to the user's wallet only after successful fee transfer completion

5. Fee Confirmation: Users receive confirmation of fee payment and remaining balance

Fee Status Tracking

Users can monitor fee payment status through:

• Real-time Updates: Immediate notification of fee calculations and deductions

• Transfers Section: Complete history of margin deposits and fee payments

• Transaction Details: Detailed breakdown of all fee components

• Refund Status: Tracking of margin refunds and processing times