As a licensed platform, Debitum uses various tools to help investors on the platform invest with controlled risk.
Debitum operates as a licensed Investment Brokerage Firm under the Bank of Latvia and complies with the European Union's MiFID II regulations.
Funds are protected up to €20,000 by the Investor Compensation Scheme and are regulated under MiFID II by the Bank of Latvia.
Our assets are secured by either a buyback obligation or a redemption obligation. This means if a loan is late by a set number of days (which varies by partner), the loan originator must repurchase the investment. Read about protection plus here: https://debitum.investments/en/protection-plus
In the redemption obligation system, if adverse predefined events occur or a Note becomes non-performing, the issuer is legally obliged to redeem the Note early. This includes returning the principal and any accrued interest until the redemption date, relying on the issuer's financial capacity to fulfill the obligation.
*Investment still involves risk, including the risk of losing the principal investment amount. Although investor protections are in place, it is important to thoroughly evaluate risks associated with each specific investment opportunity.