The return terms are specific and the assumptions are visible. Gross coupon of 15.25–16.25% is disclosed with an explanation of how Fusion Network sets the final rate — auction results, participation rate, issuance size, borrower preference, and historical performance. The rate range is honest rather than a single point estimate that implies false precision.

One number that deserves careful attention: the 10% investor service fee is deducted from interest earned, not from principal. On a 15.25% gross coupon, the net yield to investor is approximately 13.7%. On a 16.25% gross coupon, approximately 14.6%. The headline rate and the actual rate are not the same number — this is disclosed, but easy to miss on first read. Two points withheld: the final rate is not known until the auction closes on May 26.

Senior secured asset-based structure. The note is collateralized by Cadi's portfolio of MCA participations through a dedicated SPV — Series 203 of Percent. The overcollateralization requirement of 20% is maintained at all times: if the collateral falls below this threshold, Cadi is prohibited from reinvesting underlying asset proceeds until compliance is restored. This is a hard structural floor, not a soft guideline.

The 6.24x simple loss coverage means the portfolio would need to experience losses more than six times worse than Cadi's trailing twelve-month default rate before investors begin to experience impairment. One point withheld: no external lender quality disclosure beyond the SPV structure. Collateral verification has not been performed for this specific offering.

Monthly interest payments begin immediately. Principal amortization begins after the six-month anniversary of close (November 26, 2026). The note is callable at par plus accrued interest at any time — meaning Cadi can repay early without penalty to the investor. The automatic overcollateralization trigger is a genuine protection, not boilerplate. The SPV structure separates investor claims from Cadi's operating entity.

Three points withheld: no secondary market exists. Investors who need liquidity before November 2027 have no exit path. This is standard for Percent deals and should be understood before committing.

10% investor service fee deducted from interest earned — fully disclosed. Manager fee charged to Fusion Network, not to the investor. No acquisition fee, no promote, no hidden layers. Fee structure is clean and transparent. Two points withheld: the manager fee paid by Fusion Network to Percent is not publicly disclosed, creating an indirect cost that cannot be independently assessed.

The operator in this deal is Cadi International Capital LLC, not Fusion Network. Fusion is the manager — the intermediary that structures and manages the note on Percent. Cadi is the borrower: the Miami-based MCA participation firm whose portfolio of merchant receivables collateralizes the note. Understanding which entity is actually running the underlying business is the first step in evaluating this deal.

Cadi has raised $14.6M across nine deals on Percent since October 2024, with consistent on-time repayments across prior offerings. This is a partial-cycle track record — not the decade of data that would earn full marks, but more than sufficient to score meaningfully above zero. The business itself has a longer history: founded 2014, over $17M deployed across more than 6,700 advances. That is twelve years of direct MCA experience at the exact deal size and structure being offered here. Four points withheld: no independent audit of Cadi's performance. The Percent track record is self-reported via surveillance reports, not externally verified.

Direct match. Cadi operates exclusively in MCA participations — buying participations in merchant cash advances originated by their network of funding partners. This is not a firm that has recently entered MCA from an adjacent category. The management team has been in place since inception with 30+ years combined experience across MCA, finance, and banking. Alexander Castellaneta (President) is named and quoted directly on the deal page. One point withheld for the indirect origination model: Cadi does not originate MCAs directly. The underwriting quality of Cadi's funder network — BCP, Legend, Fundkite — is material but not independently verifiable.

Alexander Castellaneta is named as President with a direct CEO quote disclosing company performance and outlook. Fusion Network is identified as manager with activity since 2017 and 30+ corporate borrowers documented. Percent's surveillance reporting covers this borrower's prior performance. The offering structure diagram is published and clear. Two points withheld: Cadi International Capital LLC does not maintain a public website beyond its Percent borrower profile. Independent verification of company financials requires direct engagement with Cadi or Fusion Network.

The Federal Reserve's 2025 Report on Employer Firms confirms that 37% of firms applied for a loan, line of credit, or merchant cash advance in 2024 — MCAs specifically accounting for 9% of all SMB finance applications. This is structural demand. The broader alternative lending market continues to grow as banks tighten credit standards for SMB borrowers. Cadi's addressable market is not shrinking. Two points withheld: MCA as an asset class carries reputational and regulatory risk. State-level regulation is increasing, and several states have moved to cap factor rates or require additional disclosures.

MCA deals are priced at fixed factor rates established at origination and not tied to floating benchmarks — rising interest rates do not directly compress MCA returns the way they compress floating-rate private credit. Additionally, elevated interest rates increase demand for alternative SMB financing as bank lending becomes more expensive and harder to access. The rate environment is a tailwind for MCA origination volume. Two points withheld: if interest rates fall significantly, the 15.25–16.25% gross coupon may look less attractive relative to lower-risk alternatives. The callable structure allows Cadi to refinance at lower rates, which would return principal early.

SMB financing demand is consistent and not particularly cyclical at the MCA origination size Cadi operates at — average advance of approximately $2,600 to individual merchants. This is not middle-market corporate lending where credit cycles compress deal flow. One point withheld: a recession would increase both demand for MCA and default rates simultaneously. The 20% overcollateralization and 6.24x loss coverage provide meaningful buffer, but a severe SMB credit deterioration would test those assumptions.

The deal closes May 26. The gross coupon will be set between 15.25% and 16.25% based on auction results. Know where in that range you land before the close, and calculate the net yield after the 10% service fee. The difference between 13.7% and 14.6% net is real.

Percent notes that collateral verification has not yet been completed for this specific offering. This is not unusual for Percent deals at this stage, but it means the reported overcollateralization figures are based on Cadi's own reporting rather than independent third-party verification. This will be remediated post-close, but it is a gap at the point of investment.

This note matures November 2027. There is no secondary market. Subscribers who invest $15,000 or more should be prepared to hold through maturity. Early repayment is possible if Cadi exercises the call option, but that decision is Cadi's, not the investor's.