RPPI
Over-the-counter swap contracts that exchange fixed launch rates for floating RPPI rates, enabling bilateral risk management without exchange infrastructure.
The fixed-rate payer agrees to pay a predetermined $/kg rate multiplied by the notional mass. This rate is locked at trade execution.
The floating-rate payer pays the arithmetic average of RPPI daily fixes over the swap period, multiplied by the notional mass.
Net Settlement: At maturity, only the net difference is exchanged:
Payment = (Fixed Rate - RPPI Avg) × Notional KgLock in launch costs for a constellation deployment 6 months out. If RPPI rises, the swap payout offsets higher physical launch costs.
Guarantee revenue per kg for capacity sold forward. If RPPI falls, the swap payout compensates for lower market rates.
Trade the spread between different tenor swaps (e.g., 3M vs 12M) to express views on term structure dynamics.
Launch Price Swaps are informational product specifications. RPPI does not currently operate as a swap execution facility.