XPAY KNOWLEDGE

Industry WIKI

Digital assets and currencies

Understand assets, networks and trading mechanics with sources you can check.

Interest rate cap and floor

In finance, an interest rate cap is a type of interest rate derivative in which the buyer receives payments at the end of each period in which the interest rate exceeds the agreed strike price. An example of a cap would be an agreement to receive a payment for each month the LIBOR rate exceeds 2.5%.