AmFi Pools connect all AmFi platform users (Agents and Investors) in one place. AmFi provides Agents with more options and access to liquidity, making it easier for them to structure, distribute, and operate their financial products at scale.
Fintech companies that want to become Agents go through our registration and onboarding process, which includes:
- A Know Your Partner (KYP) check;
- Pool policy definition: terms and conditions of the pool that will establish the rules by which the pool's smart contract will operate, such as pool size, Agent information, eligibility criteria, fees, etc;
- Agent Agreement: general terms and conditions that the Agent will be subject to. The goal is to set the responsibilities regarding the platform itself, not specific to any product.
After registration and onboarding, a pre-built SPV Company is automatically bound to the pool being created with all the legal bindings necessary for the flow of capital and custody of the financing operations.
To fund the pool, the SPV issues a debt instrument. By investing in our pools, investors buy parts of that debt instrument and receive tokens that represent their quotas of that pool.
Agents must provide the pool with an amount of capital as first-loss capital known as the Junior Tranche and investors can invest on the Senior Tranche — the least riskier, with lower returns. Learn more about it here.
Once investors allocate funds to the pool, it can begin operations.
After Borrowers repay their loans, the pool has liquidity again and the cycle starts over. Operations are continuous, that is, repayments flow back into the Pool’s treasury (with profits) and may be used immediately for new operations, unless an investor has requested a withdrawal.
When a deal repayment hits our smart contract, it automatically calculates how much should go to every tranche’s principal and interest (based on the repayment schedule and tranche structure).
The repayment schedule determines how much interest/principal is expected per repayment period (e.g. 30 days). If a borrower does not repay on time, late fees are charged. Our technology allows for arbitrary interest/principal schedules such as bullet amortization, amortization with grace period, or any other exotic structure.