What is an IMFPA?
An Irrevocable Master Fee Protection Agreement (IMFPA) is the document that secures payment of an intermediary's commission. It records the fee, identifies who pays it, and irrevocably instructs the paying party or paymaster to disburse it from the transaction proceeds.
At a glance
| Term | IMFPA |
|---|---|
| Definition | Irrevocable Master Fee Protection Agreement — protects intermediary commissions across the deal chain. |
| Category | Contracts & agreements |
| Related terms | NCNDA |
What it is used for
Where several intermediaries sit between buyer and seller, the IMFPA sets out the whole fee structure at once — who gets what percentage, on which volume, at which point in the payment cycle.
Key points
- States the fee as a rate per unit or a percentage, the total volume it applies to, and the payment trigger.
- Names each beneficiary with full banking details.
- Signed by the paying principal — normally the seller — and often countersigned by the bank or appointed paymaster.
- Usually attached to the NCNDA and referenced in the master sales contract.
What to watch for
- 'Irrevocable' describes the intent, not an automatic legal effect. Security comes from the paying party's bank acknowledging the instruction.
- An IMFPA signed only by intermediaries, without the principal who controls the money, protects nobody.
- Fee structures that consume an implausible share of the cargo value are a sign the chain is not real.
Frequently asked questions
Who signs an IMFPA?
The party who will actually pay the fee — usually the seller — plus every fee beneficiary. Without the paying principal's signature it has little force.
When is the commission paid?
Typically when the seller receives payment for each shipment, so fees follow the payment cycle rather than being paid up front.
Is an IMFPA the same as an NCNDA?
No. The NCNDA protects the introduction; the IMFPA secures the money. They are complementary and usually executed together.
Related terms
Lodfy verifies every company on the platform — registration, ownership and sanctions screening — before they can trade.