Bankruptcy Risk : This term describes the risk, that a borrower will become insolvent because of its inability to service its debt.
Total Loss Risk : This term describes the risk, that the investor does not get back anything for the invested capital.
Malversation Risk : This term describes the risk of misconduct and illegal action by the executives of a partner firm. Such action could harm the partner directly or indirectly and might even lead to its bankruptcy.
Concentration Risk : This term describes the risk of a loss arising from heavily lopsided exposure to a particular counterparty. We therefore recommend a diversification of your portfolio among different borrowers strategies available on Emiglo to invest in.
Inflationary Risk : This term describes the risk of a loss of purchase power in the future due to rising prices of goods. This can lead to a decreasing real return of the capital invested.