How to Write a IMFPA (Irrevocable Master Fee Protection)

Step-by-step

1. 1. Parties
   Paymaster (usually seller-side counsel or the seller's mandate), and every fee-earning beneficiary.
2. 2. Commission per unit
   State commission as USD per metric tonne or per barrel. Fix it - do not tie it to price.
3. 3. Payment instruction
   Irrevocable instruction to remit commission on each LC drawdown, wired same-day to beneficiary accounts.
4. 4. Beneficiary banking
   Bank name, SWIFT, IBAN/account, correspondent bank for each beneficiary.
5. 5. Term & renewals
   Cover the initial trade and any extensions or renewals for the stated term.

Common pitfalls to avoid

• Leaving placeholder text like [ ] or {seller name} in the executed copy.
• Missing signature date, or signing outside the validity window quoted on the document.
• Referencing Incoterms without the year - always cite 'Incoterms 2020'.
• Omitting the arbitration seat and governing law - defaults vary by country.

FAQ