FAQ

About AmFi

• What is AmFi?

  AmFi is an on-chain financing platform that makes it easy and fast for fintechs to structure, distribute and operate their own financial products. We connect fintechs with local and global investors and implement the best capital market practices to replace bureaucratic processes with code. We're a team of third time founders with over 10 years of experience in fintechs and capital markets.

• What is AmFi's team expertise and background?

  The AmFi team combines deep expertise in financial markets, blockchain technology, and regulatory compliance, with a strong track record building innovative financial services, products, and infrastructure across Latin America. Since our founding in 2022, we have pioneered the integration of blockchain with regulated financial markets in Brazil.

  Our leadership includes seasoned entrepreneurs with backgrounds in traditional finance, fintech innovation, and capital markets operations. We have delivered solutions for regulated institutions and B2B/B2C fintechs, including launching Brazil’s first regulated tokenized securities platform, setting new standards for transparency and efficiency in credit markets.

• Is AmFi regulated? Under which regulation does it operate?

  AmFi is the first regulated tokenized securities investment platform in Brazil, operating under the supervision of the Brazilian Securities Commission (CVM). The company functions as a CVM-regulated crowdfunding platform and structures all its products as securitization operations that fully comply with Brazilian financial regulations.

  It's important to note that AmFi is not a bank or financial institution. All aspects of tax collection, custody, and reporting are handled in strict compliance with applicable laws, including specific requirements for non‑resident investors.

AmFi Products

• What types of products does AmFi offer?

  AmFi focuses on fixed income strategies backed by Brazilian credit markets. These include structured credit, receivables-backed notes, and other regulated fixed income instruments. Products are designed to balance yield and risk, with clear liquidity terms.

• How are AmFi Products structured?

  AmFi's in-house Debt Capital Markets (DCM) team specializes in sourcing top local private credit originators, applying traditional finance practices to design institutional-grade fixed income products.

  All products are fully backed by regulated assets and/or trade receivables, with added collateral by AmFi or pool originators as junior tranche. Key characteristics such as APY, collateralization, and collection structures are aligned with industry best practices and market benchmarks, aiming to offer investors an optimal risk-return balance.

• Is there currency risk when investing with AmFi?

  It depends on the product you choose:

  • BRL-denominated products: These offer higher return potential but carry currency risk, since your returns in USD will fluctuate with the USD/BRL exchange rate.

  • USD-denominated products: These eliminate currency risk, as returns are paid directly in USD, but typically deliver lower yields compared to BRL strategies.

  Investors should select products according to their risk appetite and currency exposure preferences.

• What are the liquidity terms of AmFi Products?

  Liquidity depends on the specific product you invest in. Each product has a defined redemption period (e.g., D+15), which is clearly disclosed prior to allocation and informed under the product description in your logged in area.

• What currency are the underlying loans or assets denominated in? Our first operating market is Brazil, and all loans are denominated in the Brazilian real.

AmFi for Investors

• Who can invest in AmFi Pools? KYC'd investors interested in fixed-yield on-chain investments backed by real-world assets.

• Can institutional investors also access AmFi products?

  Yes, of course. AmFi already works with multiple institutional investors such as investment funds, family offices and banks.AmFi offers plenty of options and flexibility to better support institutional investors specific needs and requirements, especially in order to structure allocations and custody models according to their internal compliance and operational requirements.

• How does investing with AmFi work for global investors?

  Once you complete onboarding and KYC verification, you can fund your account either USDC (Polygon) or fiat USD (wire transfer). Your funds are automatically converted into BRL in your wallet and ready to be allocated into AmFi Products. You can monitor your positions directly in our platform and request payouts at any time, subject to liquidity terms.

• Why do I need to complete KYC in order to invest with AmFi?

  KYC (Know Your Customer) and AML (Anti-Money Laundering) verification are required by regulation. They ensure compliance with international standards, protect the platform from illicit activities, and safeguard your identity and investments.

  AmFi partners with Sumsub, a global leader in compliance and identity verification solutions, to ensure that all processes follow the highest standards of international regulation and security.

  Generally, the documents required by Sumsub for KYC include:

  • A valid government-issued identification document (passport, national ID card, or driver’s license);

  • Proof of residential address (such as a utility bill, bank statement, or official correspondence not older than three months);

  • Proof of income or employment information, when applicable;

  • Corporate structure and registration documents, in the case of legal entities.

  For AML purposes, the following documents may also be requested:

  • A declaration or evidence of the source of funds;

  • Information on the Ultimate Beneficial Owner (UBO), when applicable;

  • Proof of business activity or financial statements;

  • Additional reports or documentation, depending on the customer’s risk profile.

• How safe is investing with AmFi?

  Security is our top priority:

  • Technology: Custody options include AmFi-custodied wallets (Web2 UX) or self-custody (e.g. Fireblocks, Ledger, MetaMask). All transactions are encrypted and monitored.

  • Financial Products: Investments are allocated into regulated, high-quality Brazilian credit and fixed income instruments, structured to balance risk and return.

    • All assets are registered with entities regulated by the Central Bank of Brazil on investors behalf

  • Governance: AmFi operates with independent service providers and banking partners to ensure transparency and security.

• What are the risks of investing with AmFi?

  All investments carry risk. AmFi mitigates these through rigorous due diligence, structuring, and diversification. Investors should be aware of:

  • Credit risk (borrower default).

  • Market risk (interest rate or FX fluctuations).

  • Liquidity risk (redemption timelines).

  We focus on building structures that provide attractive returns while prioritizing investor protection.

• Which banking jurisdictions does AmFi support for fiat funding and withdrawals?

  Currently, AmFi can receive deposits from anywhere in the world into its U.S. bank account via wire transfer. At this stage, fiat withdrawals are available only through our U.S. banking rails.

• Why do I need to convert my USD to BRL?

  AmFi’s investment strategies are denominated in BRL because they target Brazilian assets and are regulated under Brazilian law. Current regulation does not allow investment products to be offered in foreign currencies within Brazil. For this reason, USD (or USDC) deposits are converted into BRL at competitive FX rates, enabling direct exposure to the Brazilian market.

• How can I track my investments?

  All investments can be tracked in real-time through the AmFi platform. You will see allocations, current valuations, returns, and payout status. You will also receive periodic performance reports via email.

• Are there fees to invest in AmFi? How AmFi generates revenue?

  No, AmFi does not charge any fees to investors. All AmFi fees are paid by the originators. This allows investors to enjoy the full returns of their investments without any management or platform fees being deducted.

• How can I contact AmFi for support?

  You can reach our investor relations team directly via the in-app support center or by email at [email protected]. Our team is available to resolve issues and provide guidance across onboarding, funding, or investment monitoring.

Stablecoin

Learn all about ABRL, AmFi stablecoin here.

• What are stablecoins?

  Stablecoins are cryptocurrencies designed to maintain price stability relative to other assets, often fiat currencies. For example, each stablecoin paired with a dollar is worth one dollar. They are used to minimize the volatility of crypto assets prices while maintaining the security, speed, and other benefits of transactions on blockchains.

• How is ABRL used on the platform?

  ABRL is used in all transactions that involve a transfer of liquidity: loans, investments and expenses collection. It also allows platform participants who have passed a KYC (Know Your Customer) check to move their capital between the banking system and the blockchain (on-ramp/off-ramp) in an extremely simple and reliable way.

• How does ABRL peg work?

  Fiat-backed stablecoins have 1:1 parity with a fiat currency. For example, each stablecoin paired with a dollar is worth one dollar. This is the most popular model among digital assets. For it to work, there must be fiat currency in the bank accounts of the issuers of these stablecoins. This is the type of stablecoin used in our protocol. After an investor makes a request and it is approved through MetaMask (wallet used on AmFi), the ABRLs are created and backed by the reais in the AmFi account with a 1:1 peg.

• Is it possible to use ABRL outside of the AmFi platform?

  No, AmFi does not provide liquidity or support for use of ABRL outside of the platform.

Tax and Withholding

How are taxes applied to non-resident investors?

• Brazilian law requires income tax to be withheld at source (withholding tax) for non-resident investors. AmFi handles this process directly, ensuring full compliance:

  • Standard rate: 15% withholding tax on income for investors not resident in tax-haven jurisdictions.

  • Tax haven jurisdictions: 25% withholding tax applies if your country of residence is classified as a tax haven under Brazilian regulation.

  • The list of countries currently considered tax havens by the Brazilian Government includes

    Andorra; Anguilla; Antigua and Barbuda; Aruba; Ascension Island; Commonwealth of the Bahamas; Bahrain; Barbados; Belize; Bermuda; Brunei; Campione d’Italia; Channel Islands (Alderney, Guernsey, Jersey, and Sark); Cayman Islands; Cyprus; Cook Islands; Djibouti; Dominica; Gibraltar; Grenada; Hong Kong; Kiribati; Labuan (Malaysia); Lebanon; Liberia; Liechtenstein; Macau; Maldives; Isle of Man; Marshall Islands; Mauritius; Monaco; Montserrat; Nauru; Niue; Norfolk Island; Panama; Pitcairn Island; French Polynesia; Qeshm Island; American Samoa; Samoa; Saint Helena; Saint Lucia; Saint Kitts and Nevis; Saint Pierre and Miquelon; Saint Vincent and the Grenadines; Seychelles; Solomon Islands; Eswatini (Swaziland); Oman; Tonga; Tristan da Cunha; Turks and Caicos Islands; Vanuatu; U.S. Virgin Islands; British Virgin Islands; Curaçao; Sint Maarten; Ireland.

• Since AmFi is withholding investor taxes, will I be subjected to double taxation?

  Many countries have a doubletaxation treaty with Brazil, so investors will not have to pay taxes again at their home country — provided they submit the required documentation.

  • The list of countries currently with a double taxation treaty with Brazil includes

    South Africa, Germany, Argentina, Austria, Belgium, Canada, Chile, China, South Korea, Denmark, United Arab Emirates, Ecuador, Slovakia, Spain, Philippines, Finland, France, Hungary, India, Israel, Italy, Japan, Luxembourg, Mexico, Norway, Netherlands, Peru, Portugal, Czech Republic, Russia, Singapore, Sweden, Switzerland, Trinidad and Tobago, Turkey, Ukraine, Uruguay.

  For countries not included in this list, there is no treaty to avoid double taxation, and each investor must proceed according to the guidance of a tax advisor.

• U.S. Tax Return | How should U.S. taxpayers report their investment in Brazil in AmFi Platform at their U.S. income tax return?

  U.S. taxpayers investing in the AmFi Platform in Brazil must report their investment and any related income on their U.S. federal income tax return. Generally, these investments are considered foreign financial assets and may generate income subject to U.S. taxation, such as interest, dividends, or capital gains.

  • Form 1040, Schedule B: Report any interest or dividend income from your Brazilian investment.

  • Form 8938 (Statement of Specified Foreign Financial Assets): If the aggregate value of your foreign assets exceeds the reporting threshold, you must report your investment here.

  • FinCEN Form 114 (FBAR): If the investment is held in a foreign financial account and the total balance exceeds $10,000 at any time during the year, you must file an FBAR.

  Key codes / references:

  • Use Schedule B, Part III for foreign accounts.

  • Use Form 8938, Part I or II depending on asset type.

  • FBAR does not use an IRS code but is required for foreign accounts exceeding the threshold.

  Note: Always keep records of your Brazilian investment, including contributions, dividends, and capital gains, to accurately report and calculate U.S. tax liability.

• European Tax Return | How should European taxpayers report their investment in Brazil in AmFi Platform at their European income tax return?

  European taxpayers investing in Brazil in AmFi Platform must report their investment according to local tax regulations. Foreign investments are generally considered taxable assets, and any income (interest, dividends, or capital gains) must be declared in the annual income tax return.

  Key codes / forms by country:

  • Germany: Anlage KAP – report “ausländische Kapitalvermögen” (foreign capital income).

  • France: Form 2047 for foreign income; Form 2042 for total income.

  • Spain: Form 720 – declaration of foreign assets exceeding €50,000.

  • Portugal: Modelo 3 – include foreign investment income in Anexo J for dividends, interest, and capital gains; foreign assets above €50,000 must be reported in Anexo F.

  • Poland: PIT-36 or PIT-37 – include foreign income; for foreign capital gains, report in Załącznik ZG.

  Note: Always keep detailed records of contributions, dividends, and capital gains to ensure correct reporting. Double taxation agreements between Brazil and the investor’s country may allow credit for taxes paid in Brazil.

• Singapore Tax Return | How should Singapore taxpayers report their investment in Brazil in AmFi Platform at their Singapore income tax return?

  Singapore taxpayers investing in Brazil in AmFi Platform must consider both the nature of the income and Singapore’s tax rules. Singapore taxes residents on income accrued in or derived from Singapore, but foreign-sourced dividends, interest, and capital gains are generally not taxable unless they are received in Singapore under specific circumstances.

  • Income reporting:

    • Foreign-sourced dividends and capital gains are generally exempt from Singapore income tax if not remitted to Singapore.

    • Any income remitted to Singapore may need to be reported on the Form B or Form B1 (individual income tax return) under “Other Income.”

  • Record keeping: Maintain documentation of your investment contributions, dividends, interest, and any capital gains to support future reporting if necessary.

  Key codes / forms:

  • Form B / B1 – report foreign-sourced income remitted to Singapore.

  • No specific separate foreign asset reporting form is required in Singapore unless income is remitted.

  Note: Investors should also check whether Brazil has withheld taxes on dividends or interest, as Singapore may allow a foreign tax credit if the income is taxable in Singapore.