PayPledge

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Pricing and Cost ​

This section provides a comprehensive overview of how pricing works, the associated costs for different participants, and the factors that influence them.

Our pricing mechanism is fundamentally centered around the PayPledge premium, which is facilitated through the use of platform credits. This premium enables the core functionality of the platform, including the payment guarantee provided by the Underwriters and contributes to compensating various participants in the ecosystem.

The platform utilizes a system based on the PayPledge premium, which users manage and pay using platform credits. This structure is designed to cover the costs associated with providing the core service, primarily the payment guarantee backed by Underwriters, and to compensate various participants within the ecosystem.

Understanding how these credits are acquired and how the premium is calculated is key to participating in trade transactions on PayPledge.

Platform Credits: Your Balance for Transaction Costs ​

At the heart of the PayPledge pricing model are platform credits. Think of these credits as your balance on the platform, specifically designated to cover the costs incurred for conducting trade transactions.

  • Acquiring Platform Credits: Users acquire platform credits by paying the platform using fiat or crypto. For example, if you pay $200, you receive 200 credits. These credits are then available in your account to be used for transaction premiums.

The PayPledge Premium: ​

The primary cost associated with a PayPledge transaction is the PayPledge premium. This premium ensures the functionality of the platform, including the security provided by the underwritten collateral.

  • Premium Calculation Basis: The PayPledge premium is calculated based on the payment term of your transaction and the transaction value.
  • Daily Rate: For both Buyers and Sellers, this rate is set ranging from 1.5 to 3.0 basis points (bps) per day, which is equivalent to 0.033%.
  • Duration of Calculation: The premium is calculated based on this daily rate multiplied by the number of days the PayPledge agreement is in effect. For a Buyer securing the initial guarantee, this is the total duration. For a Seller accessing early financing, it's calculated based on the remaining duration from the point financing is requested.
  • The Formula: The fundamental formula used to calculate the PayPledge premium is: Premium = Transaction Value * (Daily Basis Points Percentage) * Number of Days

This calculated premium, denominated in credits, is then deducted from the respective party's platform credit balance. The funds generated from this premium contribute to covering the Underwriter's premium/yield, Payment Processor's fee (in early financing scenarios), contributions to the Dispute Resolver's rate, and a platform fee.

  • Pricing for Buyers: Understand the specific premium paid by Buyers to secure the payment guarantee, including when and how it's calculated based on the transaction value and total duration, and what services this premium covers.

  • Costs for Sellers (Early Financing): Discover the costs incurred by Sellers if they choose to access early financing, how this premium is calculated based on the remaining duration, and what the Seller's premium covers.

  • Collateral's Role in the Cost Structure: Explore how the collateral, provided by Underwriters in the form of Trade Tokens (ERC-3643) and represented as ERC-1155 tokens within the PayPledge contract, underpins the payment guarantee and impacts the financial model, including collateral release or claim processes.