Agents
AmFi offers a complete package for fintechs that want to build a new lending business without using their own balance sheet. It is a more professional and scalable approach. For early-stage fintechs, AmFi offers a complete warehousing solution that makes it much easier to raise external capital later on.
AmFi does not provide loans directly, that is done through the pools operated by Agents.
It is important to clarify that the Agent never "touches" the capital directly, but uses the AmFi platform to submit new loan requests. In this way, we can guarantee that the funds in each pool are used according to the eligibility criteria for which the Pools were created.
- On the AmFi platform, Agents configure the parameters for the pool they want to create - like pool size, assets it'll accept as collateral, and dozens of others. AmFi’s off-chain backend then deploys on-chain smart contracts according to these parameters.
- These parameters, along with AmFi's rules for good risk management, constitute the Pool Policy. This is a set of written rules against which each loan and it's collaterals is validated (automatically and on-chain) before funds are released.
- A pre-built SPV Company is automatically bound to this pool with all the legal bindings required for the capital flow and custody of the financing operations.
- Agents are responsible for providing themselves or fund-raising a small amount of first-loss capital to be invested in the Pool (between 5% and 25% of the maximum size of the Pool). This is one of the measures to align the Agent's and Investors' interests.
- Agents are responsible for collecting and enforcing repayments owed by their clients, and will will be penalized for excessive defaults in their Pool or other misuse.
- The first Agents have been personally vetted by AmFi. In 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 Agents.
Last modified 2mo ago