Indices

kord fi lending contracts use three following indices deposit index , net credit index and gross credit index deposit index – is an index that shows the growth of deposits by lenders; gross credit index – index that tracks the growth of farmers’ total debt; net credit index – supplementary index, that indicates the growth of the farmers' debt portion that is directly owed to lenders each one of these three indices is calculated in a similar piecewise linear manner according to a formula formulas i n=i p (1+r p (t n t p)), where i n present value of an index i p its previous value t n present timestamp t p last index refresh timestamp r p interest rate at a certain timestamp therefore, a regular update of these indices is required to limit their maximum values and thus the error compared to the “fair” operation of taking them to the nth power since we are dealing with fixed arithmetic operations it is necessary to specify the rounding type net credit index and gross credit index are rounded above, while deposit index is rounded below thus, conceptually the only difference between the way these indices are calculated is the interest rate type we use for each one of them index variable used in its computation gross credit index gross credit rate net credit index net credit rate deposit index deposit rate each successive rate is calculated based on its previous value formulas net credit rate = gross credit rate 9/10 deposit rate = net credit rate utilization if contract is powered down ( is working =false) net credit rate and deposit rate are automatically assigned values of zero