DoFinance is providing a breakthrough
opportunity for any individual to engage
into the world of financial investment. If
previously this was a privilege of
finance savvy professionals, these days,
with the help of DoFinance it is
accessible to anyone. Investment is an
extremely exciting way of generating
income if done properly.
It is very important to note, however,
that as any financial investment,
certain risks must be considered. We
encourage all of our investors to be
aware and assume all risks associated
with financial investment and always
diversify investments among different
risk classes. DoFinance is giving an
opportunity to invest into products
backed by consumer loans. The main
risks associated with these investments
are: credit default risk of borrowers,
market, regulatory, currency risks, and
financial risks of the service providers.
Below is the description of these and an
explanation how DoFinance is
mitigating them.
Credit Default risk
Risk
The risk of borrower not repaying the loan
Mitigation
Loan originator of
DoFinance is having a state of the art
scoring model that is monitoring
borrower behaviour in real time. The
scorecard is already adjusted for big
fluctuations impacted by pandemic.
Investment tool is not allowing the
investor to expose himself to the risk of
just one final borrower.
Market and regulatory risk
Risk
The risk of economic recession
affecting the value of investments
made by investors including sudden
changes in regulations, severe currency
fluctuations
Mitigation
DoFinance team is
constantly monitoring the economic situation in the markets that it is
operating. Monitoring results are
presented in DoFinance blog on a
monthly basis. In case of any
extraordinary events the reports will be
published immediately. Investors are
encouraged to frequently follow that
information and other information
sources in parallel. Investments are
accepted in EUR currency and Loan
Originator is assuming currency risk.
Right now however, the currencies in
Asia are at their historically lowest
levels so investments can actually
appreciate and the currency volatility
has not been too high due to that fact
that most Asian currencies are
dependant or even pegged to USD.
Dofinance allows investment into loans
that are originated in regulated market
where Loan Originator has all necessary
permissions.
Financial risks of investment platform
Risk
The risk of borrowerd delaying scheduled payments
Mitigation
DoFinance is monitoring
and Loan Originator is applying
penalties for delays to stimulate the
debtors to make payments in time. The
loans are issued for a period of up to 30
days, so the risk of delay is not
substantial and can be recognized
immediately.
Risk
The risk that platform experience financial difficulties or goes out of business
Mitigation
All of the investments are
backed by actual loans issued to end
borrowers. In case DoFinance ceases to
exist, the Investors portfolio will be still
serviced by Loan Originator or debt
collection agencies and respective
money will be transferred through to
the Investors' accounts. Since
DoFinance is an intermediary who is not
taking any financial risks, it is highly
unlikely that it would cease to exist.
Consequently, it will make sure that
there is a manager of outstanding loan portfolios of Loan Originators.
Loan originator company risk
Risk
The risk of a Loan Originator company experiencing problems or goes out of business
Mitigation
In case Loan Originator
ceases to exist, the Investors portfolio
will be passed over and serviced by
debt collection agencies and respective
money will be transferred through
DoFinance accounts to the Investors
respective account. Nevertheless,
DoFinance is monitoring the financial
stability of its loan originator on a
weekly basis.
How DoFinance Protects Your Personal Data
The security of your information and
private data (as well as investment risk
reduction) is one of our top priorities.
DoFinance deploys organized data
storage in accordance with the highest
security standards and relevant Latvian
legislation. Personal data of each
investor is requested not more and not
less to meet the relevant legislation
requirements and to prevent any
fraudulent activities that keep both
parties safe. Dofinance registration
process includes an identity verification
process during which each new investor
is being reviewed separately by our
DoFinance team
DoFinance keeps each investor up to
date regarding the status of investment
plans, each cession, profits and other.
Emails of main profile figures are sent
to investors on a daily basis, together
with payout request confirmations (one
such is made), added funds and
completed investments, etc. In addition,
investors are being informed of the
main milestones of the company on our
Blog, in which we disclose information
regarding products, Loan Originator
market status, upcoming webinars,
portfolio updates and other relevant
information at the time being.
Compliance To Financial Markets
DoFinance employs AML and
Compliance specialists to make sure
that it is not engaged in any illegal
activities. Investors may be asked to
provide proof of origin of their funds in
order to comply with the MiFID of the
EU as well as follow the
recommendations of the regional
Financial Supervisory Agency.
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