TRD Open-Ended Adaptive Debt Facility Interactive Model

Investor-led pricing for a revolving receivables securitization

Scenarios
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SummaryThe facility is fully drawn and in equilibrium: current pool utilization equals target utilization, so the borrow rate is not moving.
Established operating state

State 1 of 1

Established operating state

What changed

  • Default model state loaded.

Current state

  • Debt facility target: 8M USDC. Full 8M USDC is drawn.
  • Utilization is 95% — exactly at the 5% cash buffer target. No utilization gap.
  • Zero days elapsed, so the dynamic adjustment rule has not moved the borrow rate.
  • Investor APY = 95% drawn at the current borrow rate + 5% idle capital at the Suilend rate.

Next change

No next change is defined for this scenario.

Procedures
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Investor Withdrawal Procedure

  1. Investor creates a REDEMPTION_CLAIM for a requested USDC amount. The claim records REDEMPTION_REQUEST_TIME, PAYOUT_EPOCH_ID, SCHEDULED_PAYOUT_TIME, REQUESTED_REDEMPTION_AMOUNT, and REDEMPTION_CLAIM_STATUS.
  2. No REDEMPTION_FEE is charged when the claim is created. The requested amount remains economically deployed and continues earning full pool yield while it is unassigned.
  3. At the weekly payout event, the protocol calculates TOTAL_WEEKLY_PAYOUT_CLAIM_VALUE and AVAILABLE_LIQUIDITY for that payout cycle.
  4. Decision split: if AVAILABLE_LIQUIDITY is sufficient, each claim receives full gross assignment. If AVAILABLE_LIQUIDITY is insufficient, gross assignment is pro rata across TOTAL_WEEKLY_PAYOUT_CLAIM_VALUE.
  5. REDEMPTION_FEE is deducted from GROSS_ASSIGNED_LIQUIDITY at assignment and paid to TRD treasury. The investor receives a claimable net assigned liquidity balance.
  6. Decision split: any UNASSIGNED_REDEMPTION_CLAIM_BALANCE either rolls forward to the next payout epoch and continues earning pool yield, or the investor cancels the unassigned balance and pays CANCELLATION_FEE. Only unassigned balance can be cancelled.
  7. ASSIGNED_LIQUIDITY cannot be cancelled back into the pool. At assignment, the gross assigned amount burns or redeems investor position shares, stops earning pool yield, and remains claimable for four payout epochs.
  8. If assigned liquidity is not withdrawn within four payout epochs, the redemption for that assigned amount expires. The REDEMPTION_FEE remains with TRD treasury, net assigned liquidity returns to the main pool, and the investor is re-credited with active investor position shares at the then-current exchange rate.
  9. If TRD freezes investor payouts to implement a contract-defined off-chain event, payout movement pauses and the frozen period does not count against the four-epoch claim window.
Important: Use the Defensive Queueing Scenario to see the adversarial case with multiple claims and pro rata payout math.

Design rationale

Weekly payout batching removes transaction-order priority within the same payout epoch, gives the borrower and other investors a visible liquidity signal, and keeps unassigned capital economically aligned with the pool. The cancellation fee and assigned-liquidity expiry prevent investors from maintaining a free permanent protection option.

Protocol Parameters & Variables
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Borrow Rate Bounds
MAX_BORROW_RATE
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Borrower + SA
%
INITIAL_BORROW_RATE
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Borrower
%
MIN_BORROW_RATE
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Borrower + SA
%
Variable: Current Borrow Rate
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%
MAX_BORROW_RATE_FACTOR
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Borrower + SA
x
Capital Variables
Linked Capital Variables
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Total Deposits
× $100k
Capital Drawn
× $100k
Current Pool Utilization
%
Undrawn committed capital = 0.00 × $100k. This is the amount used by the commitment charge.
Facility Structure
MAX_FACILITY_TARGET
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Security Agent
× $100k
FACILITY_TARGET
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Borrower
× $100k
MANDATORY_REPAYMENT_RATE
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Borrower + SA
% monthly
Monthly repayment if triggered22.7k USDC
568.4k × 4.00% = 22.7k
PAYOUT_EPOCH_LENGTH
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Borrower + SA
days
Rate Adjustment
CASH_BUFFER
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TRD
%
Variable: Target Utilization96%
DAILY_BORROW_RATE_STEP
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TRD
% of current rate
Variable: Days Elapsed
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days
Facility economic statusbalanced
Daily move0.260 pp/day
26 × (1.0÷100) × (1 + |96−96|÷96)
Adjusted borrow rate (0d)26.00%
26.00 (held at base)
Borrower Fees
ORIGINATION_FEE
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Borrower + TRD
%
STRUCTURING_FEE
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Borrower + TRD
%
ADMINISTRATION_FEE
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Borrower + TRD
%
PREPAYMENT_FEE
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Borrower + TRD
%
TRANCHE_PROTECTION_MONTHS
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Borrower + TRD
mo
UNFREEZE_FEE off-chain
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Borrower + TRD
USDC
Commitment Charge
COMMITMENT_RATE_FACTOR
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Borrower + TRD
%
Investor Fees
REDEMPTION_FEE
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TRD
%
CANCELLATION_FEE
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TRD
%
Market Inputs
Variable: Suilend Rate
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%
Investor APY

22.43%

 

Total Deposits

526.3k

Investor capital supplied

Capital Drawn

500.0k

Borrower capital in use

Available Liquidity

5.0%

26.3k USDC buffer

Utilization-Priced Borrow and Supply Rate Curve
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0%10%15%20%25%30%0%25%50%75%90%100%Utilization (Borrowed / Deposited)APRminmax26.00%22.43%Borrow RateSupply Ratetargetcurrent
Visualizations & Explainers
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Facility Economic Status

Facility Economic Status is the model signal for utilization, liquidity pressure, and rate direction.

Pool Utilization
96.0%
drawn capital / active pool TVL
Facility Target Utilization
100.0%
drawn capital / FACILITY_TARGET
Target Pool Size
520.8k
surplus needed: 20.8k
Borrower Intent
noneΔ 0
FACILITY_TARGET: 500.0k → previous: 500.0k
totalDeposits: 526.3k ≥ target
surplus: 26.3k; excess above target pool size: 5.5k
Utilization Gap
96.0%vs96.0%
near target (±0.4%)
gap: 0.0%
balancedUtilization near target. Equilibrium.
— rate hold
intent> target + 0.4%± 0.4%< target − 0.4%
nonelow liquiditybalancedoversubscribed
expansionoverdrawndeployedunderutilized
reductionpending repaymentcontractedpending redemption