The ACTUS Demo-App

ACTUS (Algorithmic Contract Types Unified Standards) is a data and algorithmic standard for the representation of "smart" financial contracts developed and promoted by the ACTUS Financial Research Foundation. In particular, ACTUS Contract Types (CT's) are a set of generic financial contract templates that are unique in terms of the embedded exchange of cash flow obligations. The ACTUS standards implement these obligations as a machine-readable logic that allows to derive current as well as uncertain, future cash flow signals. Therefore, ACTUS provides the common and thus consistent business logic for "smart" real-time applications such as transaction processing systems, bookkeeping systems, or risk management and forward-looking analytical systems in general. For more details on the standards, a data dictionary, or a formal description of the algorithmic representation of CT's please visit the ACTUS homepage.

On this interactive demonstration platform you can get a "hands-on" experience of the ACTUS standards by analyzing the cash flow obligations embedded in the various CT's. Therefore, the platform allows you to alter market conditions, load a set of pre-configured demonstration cases or define your own, specific contract terms and translate these inputs into the financial contract's (future) transaction (cash flow) signals using the ACTUS CTs.

The following diagram gives a high-level overview of the ACTUS financial contract modeling paradigm and may serve as navigation through this demonstration platform. As you can see, ACTUS CTs require two types of input data: (1) risk factor states, and (2) contract terms. CTs then transform these inputs into a Contract Events (CE) representation. CEs denote real-world transaction events such as the initiation of a contract deal, the maturity of a contract or simply interest and dividend payments. These events then serve e.g. as the transaction signals in a transaction processing signal or the carry all information necessary to derive all common analytic metrics.

Alter market conditions in the Market Environment menu.

Choose a CT and contract terms in the Contract Types Calculator menu. A number of demo cases providing a specific set of contract terms is available for every CT.

Alter the Analysis Date (AD0) on the contract terms page. When using the demo cases, a compatible AD0 will be chosen automatically.

Translate the inputs into Contract Events (CE) using the "Solve" button on the bottom of the contract terms page.

Analysis Elements build on the intermediate CE-results. Aggregation of CE-results over multiple contracts, specific time-periods, or risk factor scenarios are important operations here. Currently, this is not covered here though.

On the results page, you may find a graphical representation of the expected cash flows as well as a tabular representation of CEs. In the CE table you find Dates, Types, Values, and various other relevant information which we call contract state variables. Under tab "Contract Terms" of the tabular results section, you get an overview of the contract terms used in this demo case.