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Floating Rate Markets
Infinity’s floating rates are a series of very short-dated fixed rate trades that automatically roll into the next period upon expiration thus perpetuating their floating-rate nature. The change in the number of Lenders and Borrowers within a specific period (i) determines the fixed interest rate for the next period (i+1). Traders may set levels (via Limit Orders) at which they are prepared to enter or exit such Floating rate markets, and the collection of these orders from the orderbook accordingly.
With the seamless ability to trade across both Floating and Fixed Rates, traders can update these levels in real-time depending on price movements across other markets. With a portfolio-margined risk system, this ensures fluidity of capital across the entire yield curve, and across all currencies.
The maturity date, or reset times for each Floating Rate market is as follows:
Floating Rate Markets do not pay interest on a period-by-period basis, however they accrue interest (similar to Aave/Compound) via an Index that grows over time. To crystallize your accrued interest, you will need to unwind your position, and re-enter it.
Prior to main net launch, we look for feedback from market participations on the duration/expiration of the above floating rate contracts. As such, the Expiration times may change. Check back for updates.
The value of floating leg intruments will always be Par (100%) plus accrued interest.