P2P / Crowdfunding
P2P / Crowdfunding platforms allow investors to participate in real estate projects or consumer/business loans with relatively small amounts. These instruments typically offer fixed or variable interest payments and have a defined maturity date.
🔑 Key Characteristics
| Property | Detail |
|---|---|
| Code in LibreFolio | CROWDFUNDING |
| Pricing | Not exchange-traded — value is typically the invested principal |
| Currency | Denominated in the platform's operating currency |
| Income | Periodic interest payments (monthly, quarterly, or at maturity) |
| Liquidity | Very low — funds are locked until maturity or buyback |
| Typical providers | Scheduled Investment, Manual |
📊 How It Works
🏗️ Real Estate Crowdfunding
- A platform lists a real estate project needing funding
- Multiple investors contribute small amounts (€500–€10,000 typical)
- The project pays interest on the invested capital
- At maturity, the principal is returned (if the project succeeds)
💸 P2P Lending
- Borrowers request loans through a platform
- Investors fund portions of loans
- Borrowers repay principal + interest over the loan term
- The platform distributes payments to investors
⚠️ Risk Factors
| Risk | Description |
|---|---|
| Default risk | The borrower/project may fail to repay |
| Liquidity risk | Cannot sell before maturity (unlike stocks) |
| Platform risk | The platform itself may go bankrupt |
| Concentration risk | Each investment is a single project/borrower |
🔧 Modeling in LibreFolio
The Scheduled Investment provider is designed for these instruments. It generates:
- Interest events — Periodic coupon payments based on configured rate and schedule
- Maturity Settlement events — Final capital return at end of term
- Price Adjustment events — Write-downs if the project underperforms
🔗 Related
- 📈 Interest Events — How interest accrual works
- 🏁 Maturity Settlement — End-of-life capital return
- 📅 Day Count Conventions — How interest periods are calculated