Method and system for efficiently processing large volumes of complex small value financial transactions

The present invention provides a means for a system to model the financial terms of a contract. The system receives a contract and the details of a transaction governed by the contract as inputs and outputs a processed transaction. The system models the financial terms of the contract as a function of one or more parameters. Each of the parameters are further reduced to one or more rules, where each rule represents the terms of the contract as a set of conditions and associated actions. The actions are performed by the system when a corresponding condition is satisfied. The system determines the values of the various parameters by analyzing the outcome of the condition-action sets in relation to the given input transaction.