Performance

Debt instruments performances are exposed to credit risks.

The D-ASA performance \([PRF]\) MUST be identified with one of the following enumerated IDs (uint8):

Grace Period

Debt instruments may define a grace period as a time window after the payment due date during which payment may be retried without a penalty.

The D-ASA MAY define a grace period \([GRP]\) (uint64).

The grace period MUST be defined as UNIX time, in seconds.

In case of non-continuous day-count conventions (ID<255, see Day-Count Conventions section), the grace period MUST be multiples of a day, in seconds (86400).

The grace period MAY be set using the asset_config method as time period with:

• The time period duration (uint64) equal to the grace period duration;

• The time period repetitions (uint64) equal to 1.

• The grace period MUST be anchored \([ANX]\) to the time event of the first failed payment.

📎 EXAMPLE

Let's have a D-ASA with a grace period. A D-ASA coupon payment is triggered on due date, but there is not enough liquidity to pay all the investors. The D-ASA program starts counting the grace period, increments a failed payments counter, and waits 3 hours to retry. If the D-ASA payment retrial succeeds within the grace period, no penalty or fee is applied.

Delinquency Period

Debt instruments may define a delinquency period as a time window after the grace period. If payment happens after the delinquency period, then the counterparty is in technical default.

The D-ASA MAY define a delinquency period \([DQP]\) (uint64).

The delinquency period MUST be defined as UNIX time, in seconds.

In case of non-continuous day-count conventions (ID<255, see Day-Count Conventions section), the delinquency period MUST be multiples of a day, in seconds (86400).

The delinquency period MAY be set using the asset_config method as time period with:

• The time period duration (uint64) equal to the delinquency period duration;

• The time period repetitions (uint64) equal to 1.

• The delinquency period MUST be anchored \([ANX]\) to the time event of the first failed payment or at the end of the grace period (if any).

📎 EXAMPLE

Let's have a D-ASA with a delinquency period. A D-ASA coupon payment is triggered on due date, but there is not enough liquidity to pay all the investors. The D-ASA program starts counting the delinquency period, increments a failed payments counter, and waits 3 hours to retry. If the D-ASA payment retrial succeeds within the delinquency period, a penalty or fee is applied.

Default

Default is the ultimate failure to pay the lenders according to the payment obligations. When this happens, the creditors have the right to declare default to the debtors.

Default processes require the intervention of regulatory bodies and courts, therefore the D-ASA default status bridges the default process off-chain.

The D-ASA SHOULD enter default status if it cannot perform payments on due dates.

The D-ASA MAY disable all non-administrative methods on default status.

The D-ASA default can be called either automatically (based on program conditions) or manually (based on the decision of a trustee).

The default status MAY be set with the OPTIONAL set_default_status method.

📎 EXAMPLE

The D-ASA has no grace period and no delinquency period. A D-ASA coupon payment is triggered on due date, but there is not enough liquidity to pay all the investors. The D-ASA contract automatically enters in default immediately.

📎 EXAMPLE

The D-ASA has a grace period and a delinquency period. A D-ASA coupon payment is triggered on due date, but there is not enough liquidity to pay all the investors. The D-ASA program starts counting the grace period and delinquency period. If the delinquency period expires, then the contract enters in default.

📎 EXAMPLE

A D-ASA coupon payment is triggered on due date, but there is not enough liquidity to pay all the investors. The D-ASA contract relies on a trustee to call the default.