The risks nobody puts in the banner ad
Read this before the comparison table. If any of it makes you uncomfortable, that is the correct reaction.
You can lose everything
P2P loans are not deposits. There is no deposit guarantee scheme, no central bank backstop and no compensation fund. If the borrower, the originator and the platform all fail, your capital is gone.
A buyback guarantee is a promise, not a guarantee
The buyback is issued by the loan originator — the same company whose loans went bad. When originators run into trouble, the buyback fails exactly when you need it. This has happened repeatedly since 2020.
Your money can be locked in
Secondary markets dry up under stress. Several platforms have suspended withdrawals for months with a short announcement and no timeline.
Platform risk is separate from loan risk
Even a portfolio of performing loans is worthless to you if the platform operating it becomes insolvent and loan servicing stops.
Currency and country risk
Many originators lend in emerging-market currencies. A devaluation hits their ability to repay long before it shows up in your dashboard.
Tax is on you
Most platforms do not withhold tax. Interest is generally taxable in your country of residence and you are responsible for declaring it. We are not tax advisers.
The rules we follow ourselves
- Never invest money you need within five years.
- Spread across platforms, not just across loans within one platform.
- Treat any yield above 13% as a warning sign, not a bargain.
- Test a withdrawal with a small amount before committing a large one.
- Re-read the terms when they change — which is why we track them daily.