When corporates engage in trade finance, they incur a range of fees that cover the services provided by banks and financial institutions. These fees, while sometimes complex, are crucial for ensuring secure and efficient trade transactions.

To simplify the complex fee structures that corporates face, RIVO has introduced a system feature that allows for detailed, periodic predicted charges—such as risk fees and transaction fees—to be set. These predicted charges are automatically calculated based on the predefined fee rules within the RIVO system.

This functionality is configurable against each bank, allowing you to include or exclude specific subunits when establishing fees.

Note: Currently, this fee engine is configured exclusively for guarantee products, but we plan to extend its functionality to cover all products in the future.

Here are the steps to set fees:

Navigate to Fee Agreements

• • Go to Administrator → My Banks → Fee Agreements.

Add a New Fee Agreement

• Click on "Add New" to open the Fee Agreement Details setup page.

Fill in Fee Agreement Details

Complete the following fields under Fee Agreement Details:

• Agreement Name
• Agreement Description
• Organization Units
• Bank Parent
• Bank Subunits
• Valid From
• Valid Until

Add a New Fee Structure

• Click on "Add New" to open the Fee Structure setup.

Define Fee Structure

• Click "Add Fee" to enable and update the following fields:
• Fee Name
• Fee Type - "Transactional" or "RISK"
• Fee Description

Transactional Fees are intended to be one-off e.g. a handling fee or SWIFT charges.
Risk Fees are intended to cover the life of the contract 

Set Fees Based on Fee Type

For "Transactional" Fee Type:

• "Type" is defaulted to Fixed.
• "Currency" field is enabled.
• "Amount" is editable.
• "Min, Max, and Period" fields are disabled.
• "Settlement" is defaulted to Instant.
• "Method" field is disabled.

For "Risk Fee" Type:

• "Type" is defaulted to % Per Quarter.
• "Percentage", "Currency", "Min", and "Max" fields are editable.
• "Settlement Period" is defaulted to Quarter.
• "Settlement" is defaulted to In Arrears.
• "Calculation Period" is defaulted to 365/366.
• Interest calculation Method hidden is

  Name	Unit	Rate in	Calculation
  Fixed Rate per year, year = 365/366 days	day	per year in %	result = (amount * rate / 100) / 365 * units

Now depending upon the values selected in “Fee Type” the charges could be updated.

Where to View Calculated Fees

• The calculated fees can be viewed under Reports → Applicant → Fee
• Fees are applied based on the conditions set in the Fee Agreement and will be reflected in transactions when:
  1. A transaction is executed that meets the fee conditions.
  2. The set fee type conditions are met (e.g., percentage-based for "Risk Fee" or fixed for "Transactional Fee").
  3. The applicable settlement period arrives (e.g., instant for transactional fees, quarterly for risk fees).

Note: Please refer our article to learn about Fees Report