❓FAQ

What assets am I even funding?

When you add funds to buy a LP token on FU Capital, you're getting fractionalized exposure to a debt portfolio. This portfolio consists of many loans to various real-world businesses, packaged into a single instrument. The collection of loans is then split into smaller shares and sold as LP tokens. Each LP token represents a small portion of the overall loan portfolio. As individual businesses repay their debt with interest, this interest is distributed as cash flow to the LP token holders.

What are the Risks?

By deploying funds on FU Capital, you are exposed to the credit risk of the asset owner, also known as the lender, which refers to the various FinTechs and institutions offering opportunities on our platform. All interest and loan default risks are absorbed by the asset owner. Your capital is secured by the asset owner's balance sheet and regulated by smart contracts. The primary risk you face is the possibility of the asset owner's default.

Who is the Team behind FU Capital?

FU Capital's founding team consists of seasoned professionals with over 30 years of experience in traditional finance, 15 years in lending, and a decade in blockchain businesses. The team has a proven track record, including successful FinTech startups with zero defaults across all their ventures.

How do I know that the assets are even real?

We understand the challenge of verifying crypto opportunities, which is why we perform thorough due diligence on every asset owner on our platform. This includes verifying balance sheets and loan portfolios. Initial asset owners are also partly owned by our group, ensuring oversight, performance, and minimized risks.

How Safe is FU Capital?

FU Capital prioritizes safety with strong compliance controls, including KYC, AML, and legal recourse. All transactions are regulated by smart contracts and are subject to a strict technical audit regime, safeguarding funds against potential threats.

How Can I Exit my Position?

There are two ways to exit your position on FU Capital. First, you can sell your LP tokens on the secondary market, similar to selling fixed-income securities. These LP tokens have a fair market value based on their promise of future income and their redeemable value upon maturity. The second option is to hold the LP tokens to maturity, at which point the repayment of debt will "buy back" the LP tokens at its original notional loan amount.