Risks of investing in Mintos:
What to check first.

What can make you lose money?

The Mintos documentation describes credit, counterparty, market and liquidity risks, among others. A default or a problem of the institution involved in the investment may affect payments and capital.

The risks depend on the product. Before investing, read your documents and check who should pay you, where the performance comes from and what happens if the payment does not arrive.

What if the lender fails?

Behind the loans there are companies that grant them, manage the payments or respond to the repurchase. If one of them has problems, many investments can be affected at the same time. That’s why it also matters their ability to pay, even if the loans seem attractive.

The Mintos Risk Score Summarizes this assessment on a scale of 1 to 10: a higher note indicates lower risk according to Mintos. It combines the quality of the loans, the management of payments, the robustness of the repurchase and the cooperation structure. The note does not guarantee the capital nor does it amount to a probability of recovery.

It reviews the breakdown, date and status of the entity together with its accounts and communications. Having a repurchase obligation also does not ensure that the company can comply with it. risk explanation and lenders you have the visual scale, the weights of each component, what to review and how to interpret a suspension or a withdrawal score.

Will I be able to get the money back when I need it?

The existence of a secondary market does not ensure that you find a buyer. Mintos documentation indicates that a sale may require a discount and that not all assets have that possibility.

Check out the maturity, exit conditions, and which part of the money could remain frozen if your circumstances change.

What does investor protection cover?

Mintos explains that it participates in Latvia’s investor compensation scheme, with a limit of € 20,000 for the obligations covered if it is unable to return funds or financial instruments.

This protection does not cover losses arising from the return on investment or changes in its price or liquidity. Read the conditions and exclusions of the system; the limit does not amount to a guarantee on your portfolio.

Am I concentrating too much risk?

The Mintos guide proposes to review diversification between loans, borrowers, geographies and lenders. Diversification may reduce concentration, but the portfolio remains exposed to losses.

When reading a balance sheet, it is also interesting to know how the portfolio is distributed. An isolated percentage of profitability does not allow us to understand that exposure.