TIX Credit uses a fundamentally different model than traditional credit:
Traditional Lending
TIX Credit
Loan against collateral
Advance against future ticket revenue
Monthly P&I payments
Automatic recoup from ticket fees
Default → Repossession
Slow sales → Contract extends
Credit underwriting
Volume-based underwriting
This is revenue-based financing—we advance capital and recoup through a share of ticket sales, with exclusivity as our protection.
Why Venues Need Advances
The core problem isn't renovations or equipment—it's artist deposits.
The Cash Flow Crunch
Venues must pay artists before selling tickets:
BOOKING A $100K ARTIST
─────────────────────────────────────────────────────────────────
Day -90: Sign contract
Day -60: Pay $50K deposit ← CASH OUT (no tickets sold yet)
Day -30: Tickets go on sale
Day 0: Show happens, pay $50K balance
Day +7: Ticket revenue settles
Day +30: Final settlement ← CASH IN (finally!)
RESULT: Venue floats $50-100K for 90+ days PER SHOW
A venue doing 20 shows/month might have $500K-$2M constantly tied up in artist deposits. This creates perpetual working capital pressure.
Why Ticketing Advances Work
Ticketing advances solve this perfectly:
Immediate capital — Cover artist deposits today
Repay from revenue — Fees come out of ticket sales automatically
Aligned incentives — More shows = more tickets = faster recoup
This is why Ticketmaster's advance model dominates—it's the only financing that matches the venue business model.
The Four Parties
1. Depositors
Earn yield on their USDC deposits by minting USDtix and staking into sUSDtix. Yield comes from fees paid by integrators across all venue agreements.
2. Venues (Organizers)
Receive upfront capital advances in exchange for:
100% exclusive ticketing through a TIX-enabled platform
Minimum volume commitment (or contract extends)
3. Integrators (Ticketing Platforms)
TIX-enabled ticketing platforms that:
Power the venue's ticket sales
Set their own service fees to fans
Pay TIX Credit a portion of those fees as repayment for the venue's advance
The integrator—not the venue—is responsible for paying TIX Credit.
4. Curators
Source and vet venue deals, perform due diligence, and may provide first-loss capital for higher-risk advances.
Deal Structure
Typical Terms
Based on real KYD Labs agreements:
Term
Description
Typical Value
Advance
Upfront capital to venue
$100K - $1M+
Integrator Required
Must use TIX-enabled platform
Yes
TIX Credit Share
Portion of integrator fees paid to TIX
Negotiated per deal
Exclusivity
Ticket inventory committed to protocol
100% (10% carve-out allowed)
Payout Schedule
Revenue remittance to venue
95% bi-weekly
Reserve
Held for cancellation/breach protection
5% for 6 months
Term
Contract duration
Until EITHER: (i) 48 months OR (ii) $X million GMV
Fee Flow Example
For a $50 ticket:
Service fees are paid by the fan on top of face value—the venue receives 100% of their ticket price. The integrator collects the fee and pays TIX Credit a portion as repayment for the venue's advance.
Contract Mechanics
The "Soft" Term Structure
Unlike traditional loans with fixed maturity dates, TIX Credit contracts end when EITHER:
Time limit reached (e.g., 48 months from start), OR
Volume threshold reached (e.g., $10M in ticket sales)
This means:
High-volume venues → Contract completes on volume, often in 12-24 months
Moderate venues → Contract runs closer to full term
Slow venues → Contract extends to full 48 months
Why This Protects Capital
Exclusivity Requirements
The exclusivity clause is the core protection mechanism:
"Organizer shall allocate one hundred percent (100%) of ticket inventory for all Covered Events to KYD. No carve-outs to other ticketing platforms will be permitted, with the sole exception of up to ten percent (10%) of inventory allocated for fan club presales, artist holds, or internal comps."
This means:
Every ticket sold generates protocol revenue
Cannot switch to competitor mid-contract
All marketing must use TIX ticketing links
Breach = full advance acceleration
Capital Flow
Repayment Mechanics
How Integrators Pay TIX Credit
The integrator is contractually obligated to pay TIX Credit a portion of their service fees:
This happens automatically on every transaction—no invoicing, no manual payments.
FAN PAYS:
─────────────────────────────────────────────
Ticket Face Value: $50.00
+ Integrator Service Fee: $8.50 (set by integrator)
─────────────────────────────────────────────
Total to Fan: $58.50
FEE SPLIT:
─────────────────────────────────────────────
Service Fee ($8.50):
├── Integrator keeps: $5.50
└── Paid to TIX Credit: $3.00 (repayment)
VENUE RECEIVES:
─────────────────────────────────────────────
Full Face Value: $50.00
SCENARIO: $500K Advance, $10M Volume Threshold
High-Volume Venue (sells $10M in 18 months):
├── 18 months of fees collected
├── Total protocol revenue: ~$2.7M (27% × $10M)
├── Net after advance: ~$2.2M profit
└── Contract: COMPLETE ✓
Moderate Venue (sells $6M in 48 months):
├── 48 months of fees collected
├── Total protocol revenue: ~$1.62M (27% × $6M)
├── Net after advance: ~$1.12M profit
└── Contract: COMPLETE (time limit) ✓
Even "underperforming" venues generate positive returns!
INTEGRATOR FEE SPLIT
─────────────────────────────────────────────────────────────────
Every ticket sold:
├── Fan pays integrator's service fee
├── Integrator keeps their portion
└── Integrator pays TIX Credit their portion → Advance recoup
Week 1-2 Sales: $100,000 face value (1,000 tickets @ $100 avg)
├── Venue Receives: $100,000 (full face value)
│ ├── Bi-weekly payout (95%): $95,000 → Venue
│ └── Reserve (5%): $5,000 → Held 6 months
│
├── Integrator Fee (separate): $17,000 (paid by fans)
│ ├── Integrator keeps: $10,000
│ └── Paid to TIX Credit: $7,000 → Advance recoup
Protocol TVL: $10M
Active Advances: $7M across 15 venues
Idle Capital (T-Bills): $3M
Annual Ticket Volume (financed venues): $50M
├── Integrator Payments to TIX: ~$3M (varies by deal)
├── T-Bill Yield (5% on $3M): $150K
├── Total Revenue: ~$3.15M
├── Operating Costs: -$500K
└── Net Yield: ~$2.65M
sUSDtix APR: After advance recoup & reserves = 10-15% net APR
