How to Deposit

Approval Process

Bulla’s Liquidity Pools are accepting deposits from accredited investors through a standardized approval process.

Custom pool vs. Bulla TCS Settlement Pool

Once approved, investors can either set up a custom pool or deposit directly into the Bulla TCS Settlement pool. All Bulla pools are set up on Polygon.

Custom Pool

Investors that deposit into a custom pool earn returns denominated in the pool's designated asset. This ‘haircut’ or discounting rate to purchase receivables is determined by the terms set between the Investor and the TCS credit underwriting and risk management team.

Bulla TCS Settlement Pool

Investors that deposit into the Bulla TCS Settlement Pool earn the dicount paid by TCS to freight carriers for their invoices. The target discount rate is 11.75% PA net.

Liquidity Pools on Bulla are permissioned. When an investor proves they are accredited and completes the KYC/KYB process, their wallet address or SAFE address is added to the appropriate Bulla pool. The depositor may then use the Bulla platform to access that pool.

Deposit

Investors who own USDC or USDT can deposit directly into their selected pool. For those who do not own USDC or USDT, the Bulla team can help set up a wallet. All depositors receive a Bulla Finance token, pictured below, as receipt.

Deposits into the pool will be at the current accrued price of the pool. Depositors will see their tokens deposited into their wallet or Safe.

A user may also access the Bulla Explorer, a “smart” dashboard that tracks all transactions across 14 chains.

Redeem

Depositors with their own custom pools can redeem using the Bulla Finance dashboard. If Bulla recognizes that the wallet or SAFE address is involved in a pool, the finance dashboard will allow the depositor to Redeem or Deposit using the lower right buttons.

A depositor may redeem as much as there is cash in the pool. As shown above, there is 15.31USDC in the pool, this is the current redeemable amount.

The depositor in this example has 9.98 BFT tokens which are all redeemable. Below is a look at this particular SAFE:

The safe had 378.17USDC.. and now has no BFT tokens but instead has more cash .. 388.17 USDC.

Redemptions in pools with more than one user require giving notice to Bulla. Bulla will then manage the redemption by financing fewer new opportunities until the redemption is met.

Default

In the event that a debtor to an invoice has not made a payment, Bulla may execute a default. A default will reduce the pool’s value by the amount of outstanding debt on the invoice.

Risk

Bulla is a technology services provider. Use of the Bulla Protocol involves risks, including but not limited to smart contract risk, default risk, and risk of loss.

Mitigating default risk

Every new debtor (freight shipper) is independently vetted by the TCS Team, utilizing the Equifax-Ansonia credit platform. This SaaS platform is the gold standard in the $2T+ North American transportation Industry. TCS has no obligation to extend credit to new debtors, and no obligation to continue extending credit to existing debtors. Credit allocation is rigorous, and monitoring is continuous.

While there is volatility among transportation carriers in the freight Industry, volatility is low among shipper-debtors. Historically, aggregate default rates in the full truckload sector do not exceed 1.5%. Fortune 1000 companies tender the majority of loads in the U.S. Offerings in Fortune 1000 commercial paper are rarely available to accredited investors, and intermediary fees prevail with nearly all offerings.

When TCS buys freight AR, and settles a carrier in 1-2 days, TCS owns the debtor asset. If the TCS user files bankruptcy the following week, TCS still owns the debtor asset. Where a TCS user sells AR to TCS that is not paid or short-paid by a debtor due to a claim or related event, TCS has full recourse rights against the user.

When TCS draws liquidity from Bulla, Bulla has priority rights in the asset in the event of default by any counterparty. Bulla then extends those rights to its Investors pursuant to Bulla’s Liquidity Provision Agreement (LPA).

Onchain settlement benefits Bulla Users by providing complete transparency in all commercial paper asset activity. This tech-enabled immutability mitigates human error, malfeasance, and prohibits rehypothecation activity.

Additionally, please feel free to contact our team. TCS has a 0% default rate to date. Collections Team leaders, led by Maressa Gordon, have over 30 years of freight AR settlement experience, and have worked with the largest freight factoring companies in the U.S. and Canada.