How many loans will my money be spread across?
To balance your exposure to risk, the platform will always try and invest your money across 10 to 60 loans (subject to availability). Sometimes this can’t be done straight away if there aren’t enough open loans available. So, your money will be put in the queue to be invested on a first-come, first-served basis.
It’s possible that your portfolio could become more concentrated over time – for example if loans get repaid, and the money that was previously allocated to them gets reinvested into loans that are already in your portfolio.
So that you don’t become over-concentrated in a few loans, we may periodically balance out your portfolio if more than 10% is held within a single loan.
We’ll do this by buying back your investments and spreading them across the loans you were previously invested in, and new ones, to ensure you’re sufficiently ‘diversified’.