3.2.2. LCA or Liquid Capital for Administration

Role: Administration and Management of Collections.

From the moment the NFT is created, the management of the rent collection will be the responsibility of Nash21. This means that tenants will pay Nash21 the rent from their contracts and it will be the guarantee fund (through the LCA) that will guarantee the necessary capital to nourish all of the NFTs it finds available. The main characteristic and difference between the LCA and the other indicators and items from the Guarantee Fund is that the LCA does not generate profitability since, by nature, it must remain in a state of “absolute liquidity”.

LCA: is the necessary liquid capital that must be available to pay the rents corresponding to all of the NFTs issued.

LCA= Q_contratos_tokenizados*(días_de_retraso/días_medios_de_un_mes+%IMP) *Valor_medio_renta_mensual

CLA=(1/3+2/3%IMP)Valor_medio_renta_mensual*Q_contratos_tokenizados

LCA, in addition to paying ordinary rents, also aims to cover the lags or shortfalls in transient liquidity which may arise between the time at which the tenant pays the rent, and the time at which the owner wishes to have the money available. Let’s remember that, according to the contract, the tenant must pay between day 1 and 5 of the month. This is where various situations may occur:

1. If the tenant pays the rent promptly, on day 5 for example, but the owner wants to charge the proportional rent (make a proportional claim) on day 4. In this case there is no non-payment event or any delay by the tenant. If, however, the owner executes the CLAIM function of the SC, the guarantee fund via the LCA will pay the corresponding amount proportional to those days. This situation will only be possible if it occurs in the first month of issue of each NFT, since for the months following the lag, it will have been covered with the proportion of the rent paid a posteriori.

2. If the tenant, for reasons relating to the calendar or some type of distraction or minor issue, pays the rent after day 5, we would not see a situation of non-payment in this case either. However, the CLAIM function and payment of the SC will be executed automatically. Hence, the LCA will take care of ensuring the necessary liquidity is available for it. To do so, the LCA is calculated taking into account that 100% of the rent to be paid by the tenant is received late, on day 10 of the month (double the legally established by the contract).

3. Situations of non-payment: in addition to the cases above, the LCA is calculated in anticipation of the fact that there will always be monthly situations of non-payment (calculated by tripling the current non-payment rates of the market) where the rent that should be paid by the tenant does not reach Nash21. Remember that here we are referring to the specific event of a “first non-payment” of a rental contract, since the role of dealing with non-payments once they have been identified as such falls to the Reserve Fund, which will reimburse the amount paid by the LCA.