Venue contracts are the foundation of TIX Credit—legally binding exclusivity contracts that secure protocol revenue in exchange for upfront capital advances.
The Core Problem: Artist Deposits
Venues face a brutal cash flow reality: they pay artists months before tickets sell.
Timeline
Event
Cash Flow
Day -90
Book artist, sign contract
—
Day -60
Pay 50% deposit
-$50K
Day -30
Tickets on sale
—
Day 0
Show day, pay balance
-$50K
Day +30
Revenue settles
+$80K
Multiply by 15-30 shows per month, and venues need hundreds of thousands in working capital just to operate. This is why ticketing advances exist.
The Core Model
Unlike traditional asset-backed lending, TIX Credit doesn't "own" anything. Instead, we secure capital through exclusive ticketing agreements:
┌─────────────────────────────────────────────────────────────────────┐
│ TRADITIONAL LENDING │
├─────────────────────────────────────────────────────────────────────┤
│ Collateral: Physical asset (venue, equipment, real estate) │
│ Security: Lien on asset, right to repossess │
│ Default: Auction asset, recover what you can │
│ Problem: We don't own venues, can't repossess │
└─────────────────────────────────────────────────────────────────────┘
┌─────────────────────────────────────────────────────────────────────┐
│ TIX.CREDIT MODEL │
├─────────────────────────────────────────────────────────────────────┤
│ Collateral: Exclusivity agreement + future ticket revenue │
│ Security: 100% ticket inventory committed to protocol │
│ Slow sales: Contract extends, fees keep collecting │
│ Advantage: Self-enforcing, automatic recoup │
└─────────────────────────────────────────────────────────────────────┘
"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."
The only exception is up to 10% for:
Fan club presales
Artist holds
Internal comps
Marketing Exclusivity
All promotional efforts must use TIX ticketing:
✅ Venue website event calendar
✅ Instagram, Facebook, Twitter/X, TikTok
✅ Paid and organic advertising
✅ Partner and affiliate promotions
✅ Newsletters, email, SMS campaigns
✅ No links to any other ticketing platform
Coverage Scope
The agreement covers:
All designated venues in the contract
Any new venues opened during the term
All events (regardless of promoter or artist)
Third-party rentals and venue buyouts
Payment & Recoup Mechanics
Fee Flow Example
Service fees are paid by fans on top of face value. The venue receives 100% of their ticket price.
Integrator-Based Repayment
The integrator (ticketing platform) is responsible for paying TIX Credit. The venue makes no direct payments.
Payout Schedule
Component
Amount
Timing
Bi-weekly payout
95% of net proceeds
Every 2 weeks
Reserve holdback
5% of net proceeds
Released 6 months post-event
Term & Completion
Dual Exit Conditions
The agreement ends when EITHER occurs (whichever is later):
Time Limit: 48 months from start date
Volume Threshold: $X million in total ticket sales
Why "Whichever is Later"?
This protects the protocol:
Scenario
Time
Volume
Result
Fast performer
18 months
$10M reached
Stays until 48 months OR extends
Normal performer
48 months
$8M reached
Complete (time limit hit)
Slow performer
48 months
$4M reached
Complete (time limit hit)
Even "slow" venues generate significant fee revenue over 48 months.
Contract Extension
Some agreements include automatic renewal:
"After the Initial Term, this Agreement will automatically renew for one (1) more year unless one Party gives written notice at least three (3) months prior to the end."
Risk Mitigation
How Venue Contracts Protect Capital
Risk
Protection Mechanism
Slow ticket sales
Contract extends, fees keep collecting
Venue stops events
Reserve holdback provides buffer
Breach of exclusivity
Advance acceleration clause
Venue closure
Acceleration + legal remedy
Operator change
Agreement survives assignment
Reserve Holdback
5% of proceeds held for 6 months protects against:
Event cancellations
Breach by organizer
Chargeback exposure
Settlement disputes
Breach Remedies
If organizer breaches exclusivity:
Notice: Protocol notifies of breach
Cure Period: Organizer has opportunity to cure
Acceleration: Full outstanding advance becomes due
STANDARD TICKET ($50 face value):
─────────────────────────────────────────────────────────────────
Fan Pays:
Face Value: $50.00
+ Service Fee: $8.50 (set by integrator, paid by fan)
= Total: $58.50
Venue Receives: $50.00 (full face value)
Service Fee Split:
Integrator keeps: $5.50
Paid to TIX Credit: $3.00 → Advance repayment
REPAYMENT FLOW
─────────────────────────────────────────────────────────────────
Fan buys ticket → Pays integrator's service fee
Integrator → Pays TIX Credit a portion of fee
TIX Credit → Applies to advance recoup
┌─────────────────────────────────────────────────────────────────────┐
│ VENUE CONTRACT LIFECYCLE │
└─────────────────────────────────────────────────────────────────────┘
ORIGINATION ACTIVE COMPLETION
─────────── ────── ──────────
1. Due Diligence 4. Tickets Sold 7. Volume Hit
• Venue history • Integrator collects fees OR
• Event calendar • Bi-weekly payouts 8. Time Limit
• Management team • Advance recoup tracked
5. Advance Recoup 9. Renewal?
2. Term Negotiation • Integrator pays TIX Credit • Auto-renew
• Advance amount • Tracked per-dollar • Negotiate
• Volume threshold • Complete
• Integrator terms 6. Post-Recoup
• Integrator payments continue
3. Signing & Funding
• Agreement executed
• Advance disbursed
• Integrator connected
