NotVault offers the ability to digitise term sheets and payment schedules for commercial or contractual relationships through smart contracts, streamlining commercial relationships and augmenting security and efficiency.

These relationships can exist between any parties - natural persons or legal entities such as corporations.

What is a Deal?

A 'Deal' in NotVault is a digital representation of a term sheet consisting of deliverables and payment schedules. Payments are governed by programmed rules which act as prerequisites for the release of payments. Upon the start of the agreement, collateral is locked into 'The Vault' and utilized to satisfy the payments when their conditions are triggered.

Note: Both term sheets and payment amounts maintain confidentiality. Term sheets are encrypted and only visible to the participants of the trade or commercial agreement. Payment amounts are confidential, achieved using the same methods as detailed in the Token Workflows.

Roles in the Workflow

There are two primary roles in this workflow:

  • Payor

  • Payee

Workflow Steps

Here is the step-by-step process to leverage NotVault's smart contract term sheet and payment functionalities:

  1. Term Negotiation: The payee and the payor negotiate and agree on the terms of a deal.

  2. Term Sheet Creation: The payee generates a digital term sheet and payment schedule, which includes the initial collateral.

  3. Payment Conditions Definition: During the creation and minting of the term sheet, the payee states the programmed payment conditions.

  4. Term Sheet Agreement: The payor agrees to the digital term sheet and payment terms.

  5. Collateral Lock-In: The payor locks in the initial collateral as per the payment terms, shifting tokens into the digital escrow account.

  6. Payment Release: As the payment conditions are met, the collateralised amounts are unlocked and made available to the payee for withdrawal.

Payment Conditions

The payment release conditions include:

  • The payee can withdraw after a certain date.

  • The payor can cancel payments that have not been withdrawn after a certain date.

  • The payee can withdraw when an approved oracle feed reaches a certain value.

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