Cash management charges

A cash management charge (CMC) is the portion of gross interest retained under the pool's payout arrangement.

Core calculation

For each account and day, Flinq calculates:

• Gross interest: balance × effective interest rate using the profile's day-count convention.

• Cash management charge: the applicable payout-profile percentage of gross interest.

• Client net return: gross interest minus the cash management charge.

Whole-balance payout

The account balance selects one payout tier, and that tier's CMC percentage applies to all gross interest for the day.

Partial-balance payout

Each CMC percentage applies to the interest earned by the portion of the balance within that tier. The payout-tier limits must align with the agreed interest arrangement.

Standing-rate effect

If a standing-rate floor applies, Flinq reduces the CMC as necessary so the client net return reaches the standing-rate interest. The payment run shows the affected accounts.

Change the charge

Create a new payout profile period with the agreed effective date. Flinq ends the previous period on the preceding day and preserves it for historical payment calculations.