How the Platform Risk Score Is Calculated
The platform risk score starts with portfolio performance and is adjusted using clear, predefined rules.
- Positive factors add points
- Red flags reduce points
- Scores are normalized to a 1-10 scale
- No platform can buy a higher score
1. Portfolio Performance
Portfolio performance reflects how the platform’s loan portfolio is actually performing, based on publicly disclosed and regularly updated data. Strong performance means most investor funds are repaid or performing as expected.
Weak performance increases the risk of liquidity problems, delayed repayments, or capital losses. A current portfolio means investors are not required to manage defaulted or long-term overdue loans.
| Portfolio performance | Points |
|---|---|
| 100 % | 10 |
| 90 % - 99.99 % | 9 |
| 80 % - 89.99 % | 8 |
| 70 % - 79.99 % | 7 |
| 60 % - 69.99 % | 6 |
| 50 % - 59.99 % | 5 |
| Below 50% | 0 |
| Portfolio performance not disclosed | 0 |
Platforms that do not disclose performance data receive a score of 0 for this category. In addition to portfolio performance, investors should consider the total assets under management. Strong performance is easier to maintain in smaller portfolios.
As platforms grow, consistent performance becomes harder. This factor is not part of our risk rating score, but it should not be ignored by investors.
2. Structural Safeguards
These factors increase confidence in a specific platform.
| Factors | Points |
|---|---|
| Regulated platform | + 1 |
| Financial statements are available | + 1 |
| Operating history more than 3 years | + 1 |
If a platform does not meet the structural safeguards, it receives 0 points in this category.
Regulation adds oversight and disclosure requirements, which reduces the risk of fraud and misleading practices. Regulated platforms usually provide clearer information about their operations and, in some cases, about the lenders behind the loans.
Some unregulated platforms have operated without major issues, but disclosures are often more limited. This increases platform risk.
3. Red Flags
Red flags reduce the score depending on severity.
| Minor & Substantial Red Flags | Points |
|---|---|
| Issues that raise concerns but are not critical | - 1 |
| Serious issues that affect investors' trust or platform integrity | - 2 |
Red flags are documented and explained in our platform reviews. A minor red flag may include changes to terms and conditions without prior notice. A substantial red flag includes actions that restrict investor liquidity or fall outside normal platform operations, such as blocking or limiting withdrawals.
| Example: How a Platform Is Scored | Points |
|---|---|
| Portfolio performance 85% | + 8 |
| Regulated platform | + 1 |
| Financial statements are available | + 1 |
| Operating history more than 3 years | + 1 |
| 1 minor red flag | - 1 |
The final score is shown on a 1–10 scale to keep ratings comparable across platforms. Scores may change over time as new data, disclosures, or red flags emerge.
Disclaimer:
This methodology helps us assess platform risk in a consistent way. However, P2P lending also involves lender risk and country risk, which are not captured by a platform risk score alone. A platform risk rating does not guarantee protection from losses. Some information is not publicly available, so investors should always verify key details independently before investing.
