This proposal seeks approval to change the protocol fee for an upcoming borrower pool from 10% to 7%. This fee reduction is a requirement from an anchor investor in the pool, which is committing $10MM of capital. This change will not affect existing pools.
Cerchia, a Switzerland-based fintech, is seeking to launch a borrower pool on Goldfinch backed by natural disaster insurance-linked securities. Cerchia has secured an anchor investor, which intends to invest $10MM in the pool. Given the magnitude of the check size, the investor is seeking a reduction of the standard 10% protocol fee as a “volume discount”. Volume-based pricing discounts are typical in markets, including capital markets, where larger investors often pay lower fees on a percentage basis.
- Change the protocol fee for the Cerchia borrower pool to 7% of interest.
- Facilitates the addition of the following to the Goldfinch platform:
- at least $10MM of new investor capital
- a new underlying asset class of insurance-linked securities
- Potentially set a precedent for investors to seek lower fees. As noted, this is a common feature of markets.
- Non-anchor investors will benefit from the lower fee, regardless of investment size.
“Yes” - Change protocol fee for the Cerchia pool to 7%.
“No” - Do not change, which would put at risk the feasibility of Cerchia launching on Goldfinch.