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RikkiTikki

SLA's???

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Is anyone privy to Ripples SLA policy or even SWIFT's ??? The reason why I ask is because I am sure Ripple has entered into SLA agreements with their customers that utilize their products.  Typically if SLA's are broken due to software or service not living up to the SLA agreement in most case where a lot of dollar amounts are involved this pretty much becomes a battle between the customer and the provider through litigation. Typically the customer accusing the provider of software or service breaching the SLA agreement and the dollar amount owed due to this occurrence and the provider either acknowledging that the breach was their fault and paying the cost of such or proving that the breach was not their fault.  So if XRP isn't  succeeding where are the law suits or arbitrations from the customers who are live on XRP???? Just a thought. I mean I see all the non verified reasons why XRP won't work at this point Ripple should have lawsuits out the rear you would think, but they don't!! Hmmm!!!If your product or service breaks SLA agreements and causes your customer a substantial loss or liability rest assured they will come after you.  I have seen this first hand.  Considering that the core of the business here is money I bet SLA's are structured really tight so if things are going south like some claim where is the fall out????

Edited by RikkiTikki

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I'm sure the SLO's are well established before customers jump into ODL.  It's pretty clear there is an orchestrated "ramp up" and customers are likely suggested or agreed upon per SLO's to maintain a certain level of stabilization in their use of the ODL product.  Ripple may even provide signals (i.e. the UK corridor announcement recently) to customers regarding when and how to use ODL.

It's pretty early on.  I don't think anyone except MGI is wagering a serious bet on ODL (yet).

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9 minutes ago, Zedy44 said:

I'm sure the SLO's are well established before customers jump into ODL.  It's pretty clear there is an orchestrated "ramp up" and customers are likely suggested or agreed upon per SLO's to maintain a certain level of stabilization in their use of the ODL product.  Ripple may even provide signals (i.e. the UK corridor announcement recently) to customers regarding when and how to use ODL.

It's pretty early on.  I don't think anyone except MGI is wagering a serious bet on ODL (yet).

It still needs to preform within SLA specifications no matter how small or large the transaction flow is.. SLA's are a factor at every junction.  Money transfer is a core business of  MG, matter of fact it is their business.  There maybe a little wiggle room since Ripple does own a percentage.  By the way typically yes a company does set an initial framework for an SLA but the customer ultimately dictates a lot what goes into an SLA.  Your not going to go into any organization and state this is how our product works here is are SLA adhere to it or else.  Also SLA's can be modified per customer so I'm not going to speculate what they did before hand or what they came up with in a high level meeting between the customer and themselves my point was it would be good to see one if possible and we have not got a whiff of any bad news from a customer saying  ODL is out of bounds.

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7 hours ago, RikkiTikki said:

It still needs to preform within SLA specifications no matter how small or large the transaction flow is..

I think Ripple are in a position to guarantee profitability because of their war chest.  They have said they would subsidise corridors if necessary at first to get the pump primed.  So I suspect it is a guaranteed win for the customer hence no lawsuits likely.

So the absence of lawsuits doesn’t really prove much I think.

Even if Ripple are subsidising heavily, (I don’t think they are, ) it’s still all good because that may be what’s required to get the flywheel turning.

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4 hours ago, Tinyaccount said:

I think Ripple are in a position to guarantee profitability because of their war chest.  They have said they would subsidise corridors if necessary at first to get the pump primed.  So I suspect it is a guaranteed win for the customer hence no lawsuits likely.

So the absence of lawsuits doesn’t really prove much I think.

Even if Ripple are subsidising heavily, (I don’t think they are, ) it’s still all good because that may be what’s required to get the flywheel turning.

This

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15 hours ago, Tinyaccount said:

I think Ripple are in a position to guarantee profitability because of their war chest.  They have said they would subsidise corridors if necessary at first to get the pump primed.  So I suspect it is a guaranteed win for the customer hence no lawsuits likely.

So the absence of lawsuits doesn’t really prove much I think.

Even if Ripple are subsidising heavily, (I don’t think they are, ) it’s still all good because that may be what’s required to get the flywheel turning.

The interesting thing here is that I don't think it would be the customers of Ripplenet that Ripple would be subsidizing. When you model it out, for any corridor, the customers like MGI make money and use the system because the quoted spread between originating currency and receiving currency over ODL is low. This is dependent on the liquidity providers who are providing those quotes via the FX ticker/s. My assumption has always been that the exchange operate one FX ticker using their open 'market' order book and at least 2 liquidity providers operate another 2 using non-public books (like A + B books/dealing desk in the forex market). The LPs are under a contract with Ripple, not the customer (MGI in this example) or the exchange, so if there's any mechanism to maintain a low FX spread (i.e. create on-demand liquidity/market breadth) through the injection of a subsidy from Ripple its likely to happen there, and to start we know Ripple have in some cases loaned these LPs large tranches of XRP to kick start their LP operations, which in itself is a subsidy as it lowers capital costs of holding XRP. Other subsidies may come in the form of discounts for OTC purchases, scaled interest loan payments back to Ripple based on volume and/or spreads, volume and/or spread based rebates, etc.

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1 hour ago, vinylwasp said:

the customers like MGI make money and use the system because the quoted spread between

We know from MGI earnings call that they are getting back a portion of the fees they pay for ODL and they are recognizing it as revenue. Per Alex Holmes, it was negligible last quarter and included in other income but said that it will increase in future period and will be presented as its own line item.

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8 minutes ago, lll_lll said:

We know from MGI earnings call that they are getting back a portion of the fees they pay for ODL and they are recognizing it as revenue. Per Alex Holmes, it was negligible last quarter and included in other income but said that it will increase in future period and will be presented as its own line item.

That makes sense too, assuming Ripple offer rebates for volume on the utilization side as well, the more you use the cheaper it gets.

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