An Order is the operational unit of a contract: it specifies what is to be delivered, when, under what conditions, and at what price except for donations or free products. Orders are issued under a Contract (the broader framework agreement), and may be confirmed individually, on a recurring basis, or as a single all-in-one arrangement.

An order can either be a stand-alone order or be part of a contract.

Orders are classified by their nature, which mirrors the Contract nature:

• Commercial 🏷️: the Supplier delivers products (services, goods, work, assets or other non-financial contribution) in exchange for payment by the Client (e.g., an invoice, salary, or rent).
• Funding 💰: the Supplier (investor, bank) provides funds to the Client (recipient), in exchange for return, interests, dividends, principal repayment, buybacks, or other types of payments.
• Grant 🎁: the Supplier (donor, grantor) provides funds to the Client (recipient, beneficiary) without any remuneration.
• Transfer ➡️: the Supplier (seller) transfers existing Commitments (receivables, securities) to the Client (buyer). Commitments can be financial securities, receivables, or other financial instruments. When transferred, these commitments retain their original payor, but the client (buyer) becomes the new payee.

An Order defines the Deliveries, the Remuneration Structure, and the Payment Terms applicable to that specific engagement

Payment structure

• The order’s payment structure defines how the remuneration, if any, will be paid by the client.
• In case of a Funding or Grant order, the payment structure also defines how the contribution (i.e. the funds or donation) will initially be paid by the supplier (investor or donor) to the client (recipient).
• The payment structure includes one or more portions, each with a percentage and a payment term.
• If the order is subject to a project’s FlexUp Charter, then flexible payment terms (preferred, flex, superflex, credit and token) can be used. Flexible payments are not guaranteed, but are subject to the project’s availability of cash. Tokens are issued by the project (token issuer) to the associate (token recipient) in exchange for the risk taken by the payee (recipient) on the related commitments. The number of tokens is calculated using the payment structure’s specific risk factor.

Order recurrence

The order recurrence determines how orders are added to a contract:

• None ❌: No orders are added to the contract (convenants)