Within the Digital Waterfall, the user can build out the structure of the payments within the deal. The Digital Waterfall will run through each of the steps for each period of the deal, in the order that they are defined, for the number of periods defined under Portfolio > Settings.

The user can define specific Limits to each step or set a Condition under which the step will run. In the case that there are no Limitations nor any Conditions set, the step will be paid until the amount due is paid in full, or there are no more available funds in the source account. 

Waterfall Structure

Per each line, the user must define:

Source: The account from which cash will be drawn.

  • These are accounts which have been defined under the Collection Accounts 
  • All accounts defined will appear - Collection, Overdraft, Revolving
  • A Reserve account can also be used as a source account

 

Uses Category: The common attributes of the Use account. 

  • The user can choose a category for this line within the waterfall
  • This will update the options in the Uses column

Uses: The account/tranche to which cash will flow into.

  • In accordance with the Uses Category, the user will be prompted with the applicable options. For example, if the user selects the Use Category of Tranche Interest, the Uses dropdown menu will display all Tranches applicable
  • The user can define multiple Uses per line - use ; to indicate a pro-rata relationship (being paid together) or a , to indicate a sequential relationship (a hierarchy of payments between the uses). 

 

Limit: Limiting the cashflow allotted for the step. 

  • The user can utilize Dynamic Expressions to limit the amount paid per step
  • Only Float type Dynamic Expressions can be used (only functions that return a number)
  • The user can define a new Limit in the Waterfall Limit column or choose from any float type Dynamic Expressions already defined under the Dynamic Expressions tab
  • The Limit will override the amount due in the step
  • The user can see the Limit output under Custom Reports
  • When left blank, the money will flow through until the amount due is completely paid, or the funds end in the source account
  • The user can Add a New Limit by using the blue button on the top right

Conditions: Under which conditions will this step be executed.

  • The user can utilize Dynamic Expressions to condition whether this step will be executed or not
  • Only Boolean type Dynamic Expressions to condition the steps (only functions that return true or false)
  • The user can define a new condition in the waterfall condition column, or choose from any Boolean-type Dynamic Expression already defined under the Dynamic Expressions tab
  • The user can see the condition output under Custom Reports
  • When left blank, the step will always execute (unless the source account is empty)
  • The user can also Add a New Condition by using the blue button on the top right

Name: Optional field to name a specific step

  • The user can assign a name to a specific step
  • The name can be used by the OFFSET function in the dynamic expression 
  • Once a step name is used in a dynamic expression, it will refer to the specific step, even if the step's location has changed

Important to Note:

The user can drag steps up and down. Choose the step that needs to be moved and hold it by the step number then drag it to the desired location.