Loan: Other payables-XX Company

Performance bond: The performance bond is to prevent the contractor from defaulting or breaching the contract during the execution of the contract and make up for the economic losses caused to the employer. Its forms include performance bond (also called performance guarantee), performance bank guarantee and performance guarantee. The performance bond can be confirmed check, bank draft or cash check, and the performance bond shall not exceed10% of the winning contract amount; The performance bank guarantee is the guarantee issued by the winning bidder to the bank, and the amount is within 10% of the contract price; Performance bond is a bond issued by an insurance company, trust company, securities company, entity company or social guarantee company, and the amount of guarantee is 30% of the contract price. The Employer shall return the performance guarantee to the Contractor within 28 days after the project acceptance certificate is issued.

Performance bond is a kind of financial guarantee for buyers and sellers to ensure performance. Traders in the futures market must deposit a certain amount of performance bond when trading. The amount of bonds is set by the exchange that provides contract transactions, usually 5- 15% of the total contract value. Of course, brokers or entrusted brokers will also set an additional margin on their own, which will not be lower than the level set by the exchange. In addition, the level of margin is also affected by the market transaction risk, and more margin is usually paid in the volatile market. At the same time, the margin requirements for hedging and speculative trading are also different. Generally, the deposit received by the former is relatively low. Margin is divided into initial margin and additional margin. The initial margin is the margin paid by the trader before the transaction according to the regulations. Due to price changes, the book losses suffered by traders are deducted from the margin, resulting in a decline in the margin. When the margin is reduced to a lower level (generally stipulated by the exchange), the broker will ask the trader to pay a part of the margin to make the account reach the initial margin level. This extra part is called extra margin.