The Daily Credit Facility is available to eligible clients only, and its proceeds can be used on the LGO spot exchange only.
At the end of April 2020, we have released a significant improvement to our spot exchange.
With the Daily Credit Facility, clients are able to trade on the platform without prefunding trades. This new feature offers a secure, scalable, and flexible financing option with low opportunity cost to our client base. This is a first in the industry!
- Low opportunity cost: trade with 10-30% collateral on a spot market
- Secure: limited counterparty exposure due to the post-trade settlement feature and our counterparty vetting system
- Flexible: pay interest on funds used only
To use the daily credit facility, follow the steps below:
- Make an inquiry to your LGO representative: We will assess the request, conduct our due diligence and compute your credit limit per asset
- Deposit collateral: send required collateral on the Collateral Wallet
- Receive credit: Upon receiving collateral, LGO will update your Trading Wallet to reflect your new trading limit
- Settlement: the Daily Credit Facility settles each business day
- Upon settlement of previous day credit, trading limits are reset
10 am => 2 pm*
2pm => 10pm*
> 10 pm*
LGO computes net settlement transactions and communicate settlement instructions
Net settlement takes place and withdrawals are processed
Late penalties accrue on non-settled positions (1% of unsettled positions + 30% p.a additional interest rate)
Unsettled positions are liquidated and covered using collateral
* All communicated times are Eastern Standard Time
- Deposit funds to Trading Wallet - settlement is complete once exact amount communicated to clients at 10 am ET has been deposited into the Trading Wallet
- Optional: Trade OTC with LGO’s desk to convert assets in overfunded positions into underfunded assets within the Trading Wallet. No movements of funds required, credits and debits will occur automatically within minutes
- 4am ET (best effort)
- 10am ET (4 hours SLA)
- 4pm ET (best effort)
For clients using the Daily Credit Facility:
- By default, proceeds of trades are credited after each trade on the Trading Wallet
- Settlement of trades can occur on an external wallet if the request is made before 10am ET. Once your leg is settled by sending funds to your Trading Wallet, LGO will send funds to the requested external wallet
- Trading proceeds and PnL can be withdrawn from the Trading Wallet according to withdrawals schedule. Please note that we will not process withdrawals until trades are settled
Interest Rate Calculation
Interest Rates are updated monthly to reflect market prices.
Interest is paid on amounts drawn from the Daily Credit Facility only.
To learn more, please contact your LGO account rep