Investments always involve some level of risk. One risk when investing in loans is, for example, that the borrower of a loan that you invested in, does not have the ability to repay their debt, which in some cases leads to a credit loss.
Remember that each loan type on our platform has an associated target interest rate that shows the expected return after credit losses and fees. Additionally, we work actively to reduce each investor's total exposure to loans that are not repaid by constantly developing our yield robot. This way, the capital invested is spread over several different loan types, thereby reducing each investor's share of the credit loss from a single loan.
Read more about the riska involved in investing on our risk page.