Enhancing the risk & return balance on Mintos

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A lending company may offer loans to investors with various interest rates. So to calculate the interest rate floor, we consider the investing activity (of manual and custom automated strategies) across the interest rate range that a lending company is currently offering on Mintos. If investment volumes are low at a particular interest rate, we set the rate floor above this rate. 

For example, if a lending company is offering loans with interest rates between 4% – 14%, but we see that investing activity in loans with interest rates below 10% is low, we set the rate floor for loans from that lending company to above 10%. Once set, Mintos strategies will only invest in loans from that particular company that are of 10% interest or higher. 

To set the rate floor for a lending company new to Mintos, we consider the rate floors of other lending companies that are from the same country and offer the same product type. 

Rate floors are constantly updated to reflect market conditions, and in case of unexpected market events, we may update them immediately. 

To learn more about Mintos strategies, check out investing with Mintos.

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