Payments × Treasury · mudaraba placement model

Treasury-backed placements: Client Tool

You place funds with Clarency under a profit-sharing investment agreement. The placement earns a share of what the portfolio actually makes. That profit is yours, and you can apply it against your payment charges. Profit is a fixed dollar amount; charges scale with volume - so the same placement funds a shrinking share of the bill as you grow.

This model sizes an expectation, not a promise. The profit rate is indicative. Every figure below moves with the portfolio’s realised return, and your net position can land either side of nil - see “If the portfolio under- or out-performs”. A version of this grid where the net is always exactly zero would be a guaranteed return, and a guaranteed return on a placement is riba.

Assumptions

Structure - mudaraba

Target ROA on mudaraba pool (% p.a.)

Your profit share - PSR (%)

Your indicative rate (% p.a.)

Downside gross rate (% p.a.)

Upside gross rate (% p.a.)

Payment pricing

Average payment size ($)

TT charge per payment

-Fixed - charged on each payment

Flow fee

-Fixed - charged on payment value

All-in charge

-Flow fee plus TT, at the average size above

The frontier

Horizontal: monthly payment value. Vertical: placement. Click or drag anywhere to reposition the crosshair. The hatched band around the line is where that line moves between the downside and upside profit rates - the width of the band is the uncertainty you carry.

Profit below your fee cost - partial relief only Covers everything - payments free Range across downside–upside profit rates

This deal

If the portfolio under- or out-performs

Your over/under against payment fees - profit earned less payment charges - at the placement and volume on the crosshair, across realised gross portfolio rates. This chart is the point: the outcome must be able to fall on both sides of the line.

You keep a surplus You pay the shortfall

Placement required, by tier

Read across: to fund this level of relief at this volume, this is the indicative placement.

Reading this correctly

The placement is an investment, not a deposit. You are not lending Clarency money at zero and being paid in discounts - that would be a benefit on a loan. You are investing, earning a share of real profit under a declared profit-sharing ratio, and choosing to spend that profit on payments.

The profit-sharing ratio is the commercial term. It is declared up front and disclosed in the agreement. Nothing is netted against your payment fees to arrive at it.

Payment pricing stands on its own. The tariff is earned by pre-funding, volume and netting - things that genuinely lower the cost to serve. It is not consideration for the placement.

The rate is a Shariah-compliant portfolio rate. High quality IILM and sukuk instruments or similarly agreed upon equivalents - not US Treasuries or any other traditionally yield bearing instruments.