Overview

In the financial world, institutions like banks and investment firms keep track of their financial status using balance sheets. A balance sheet is like a snapshot that shows what the institution owns (assets), what it owes (liabilities), and other financial commitments it has made, known as financial contracts.

Financial contracts are unique because they outline specific agreements where money will be exchanged in the future. These contracts are critical because they provide the foundation for many financial activities, from loans and mortgages to investments. However, managing these contracts can be quite complicated, especially when institutions rely on outdated technology or inconsistent methods.

This complexity leads to challenges in handling financial data, making it difficult for institutions to operate efficiently and for regulators (who oversee the financial system) to monitor and manage risks effectively. To address these challenges, the ACTUS project was developed.

What is ACTUS?

ACTUS (Algorithmic Contracts Types Unified Standards) is a standardization framework for financial contracts. It aims to bring consistency and clarity to how financial contracts are represented, executed, and analyzed across different platforms and institutions.

Need for ACTUS

Financial contracts are the foundation of the financial world, representing promised cash flows that define the assets and liabilities of institutions. However, managing these contracts efficiently and accurately has been a significant challenge due to outdated systems and a lack of standardization. ACTUS addresses these issues by providing a universal standard that applies across legacy financial institutions, regulatory environments, and emerging decentralized finance (DeFi) platforms.