In simple terms, an AmFi Pool receives liquidity from Investors and allows the Originator to use this liquidity (within restrictions) for operating credit rights. After a certain period, the profits obtained by the pool are distributed back to the investors with interests.
In more technical terms, AmFi Pools are credit structures created by Originators. They are used to generate loans to Borrowers and can be invested by Investors. They are backed by a corporate structure pre-built by AmFi and provide full coverage to the flow of capital.
Our pools are very similar to traditional credit funds and the reason for their creation remains the same: the anticipation of credit rights to be obtained by individuals or legal entities. The main change is in how this is done.
One of the key elements of our Pools is to automate most of the processes and make them depend as little as possible on human intervention, minimizing costs and errors while increasing transparency and efficiency.
See here how we managed to reduce costs and increase efficiency.
The AmFi Pools are based on the tripod:
Smart contracts: they are responsible for tokenizing the assets purchased by the pool, analyzing the eligibility criteria, and managing the flow of funds (investments, withdrawals, disbursements, and payments).
Bank orchestration: it coordinates the movements between accounts. Based on the inputs on our platform and the events issued by the smart contracts, disbursements are automatically made to the borrower(s). In the event of a default on the installments owed, we automatically retain the amounts in an escrow account (enforcement of guarantees).
SPV/securitization (separate equity): it is the legal entity that represents the pool for real-world purposes (i.e. loan custody, collection, collateral execution, etc.). Each pool has an SPV linked to it.
The Originator has this entire structure at their disposal to build their Lending Pool based on the criteria that make sense for the operation and for its asset portfolio.
AmFi provides the entire structure for the originator to operate. The originator must provide the documentation requested at the time of onboarding with information about the operation, partners, resource utilization, growth plans, etc.
The originator only needs to submit the operations to AmFi to be validated according to the pre-established criteria.
Collateralization of the operation
We support the full spectrum of collateralization, from overcollateralized to non-collateralized operations.
Although it is common for these types of operation to use some level of collateral, there are operations where collateral is not used, either due to the asset used or the originator's niche. This needs to be well defined when the pool is created and be very transparent to investors.