How we control risk.
High returns don't mean blind risk. These are the structural mechanisms that protect invested capital.
General framework
Every productive investment carries risk. Our job is not to hide it but to structure, measure and report it. We work in four layers: origination, diversification, first-loss capital and collections.
The four layers
Origination
Every loan goes through evaluation of cash flow, credit purpose and active references in validated productive communities. We reject more requests than we approve. Current approval rate: [TBD]%.
Diversification
No investor is exposed to a single loan. Minimum allocation is 15 loans per investor; v0.1 average is [X] loans. This turns an individual default into a marginal portfolio loss.
First-loss capital
The team keeps proprietary capital in every pool that absorbs first losses before they affect investors. Current percentage: 10% of pool.
Structured collections
Progressive collections escalation with transparent delinquency reporting. The structure is designed to recover capital without destroying the relationship with the productive borrower, which reduces future defaults.
Target and actual metrics
v0.1 metrics correspond to an initial operating cycle with reduced sample size. Statistical consolidation is reached at [X] loans deployed.
What we do NOT control
There are risks outside our control and we want to be explicit about them:
- Regional macroeconomic crises affecting widespread payment capacity
- Regulatory changes that modify operations
- Individual fraud events undetected by origination processes
We mitigate operational exposure, not systemic risk. That's why no investor should allocate capital to Finnoba that they cannot afford to lose entirely.