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How to launch a pool
Now that you know how our pools work and the benefits of using the AmFi platform to structure your credit operation, let us take a look at the process of opening a pool.
- After approval through our onboarding/KYP process, where we assess origination capacity and fraud history, among other things, the originator can configure their pool.
- AmFi will use its network of contacts to find institutional investors interested in your product; many operations are already born sold, like this one. Other options are to distribute via retail or to make a public offering.
- On the AmFi platform, Originators configure the parameters for the pool they want to create - such as pool size, assets accepted as collateral, and dozens of others. AmFi's off-chain backend then deploys on-chain smart contracts according to those parameters.
- These parameters, along with AmFi's rules for good risk management, form the Pool Policy. This is a set of written rules against which each loan and its collateral are validated (automatically and on-chain) before funds are released.
- A pre-built Special Purpose Vehicle (SPV) is automatically bound to this pool with all the legal bindings required for the capital flow and custody of the financing operations.
- Once the pool is invested with a certain amount of capital (the pool does not have to be fully filled to start operating), the originator can start operations, acquiring assets and making loans to its borrowers!
The first Originators were personally vetted by AmFi. Over time, anyone will be able to apply and go through AmFi's automated and independent KYP process, and those who meet the requirements will be able to become Originators.
Last modified 2mo ago