MFX Product Pricing

MFX will base its pricing on the terms and price at which it can rehedge its own risk with TCX or a commercial bank, plus a spread to account for the credit risk of its clients. MFX will not require collateral from its microfinance industry clients that meet minimum credit standards. This removes a major barrier for many lenders who cannot afford to tie up liquidity in order to hedge their currency risk. It also vastly simplifies the hedging process.

However, since MFX is transacting on an unsecured basis, it must price for the credit risk it is taking on. MFX will charge a credit spread on top of the price it receives from TCX to cover this risk. Actual spreads charged to clients will depend on their credit score. The company may charge other fees to non-investors.

Price Quotes