Use case examples

The following examples provide an overview of how transactions could potentially operate:

A hotel developer based in (LATAM+C) needs to borrow funds to develop a new hotel or refurbish an existing hotel. It cannot find any lender willing to lend the funds due to the absence of regular mortgage securities. Instead, the hotel developer proposes a structure whereby an investor receives the agreed loan payments from a security structure (a Trilobyte Vault) where the foreign hotel operator will send the future room rental and other cash flow from the hotel once it is operational. This operator (a Payment Actor) is based entirely outside of the hotel country and would be instructed by the Borrower (the owner of the hotel) to redirect the operating cash flow resulting from the hotel operations to the agreed Vault.

Similarly, online sales platforms on which the hotel rooms and other hotel services are sold can be directed to channel their payments owed to the Borrower to the Vault.

This structure can potentially be applied to most cash flow generating businesses. The owner of an online shop can borrow funds in order to purchase inventory that will be sold on the platform, using the future online sales proceeds to be paid to the owner from the payment platform. Similarly, the owner of a factory can borrow funds in order to purchase raw materials to be used in the manufacture of the products that it sells, using the future cash flow from customers to secure repayment of the loan.

If a loan agreement is signed by all parties and the Payment Actor is instructed accordingly, the relevant cash flow would flow regularly to the Vault and would be automatically distributed to the Investor and Borrower in the agreed fashion through the operation of the relevant smart contract.