Peer to peer lending is not covered by the Financial Services Compensation Scheme (FSCS). Therefore, your capital is at risk if a borrower defaults on their loan commitment.
If a large number of borrowers default on their loans due to negative economic conditions or poor credit sanctioning at a particular platform, your investment would be affected.
In addition to this, if fraud occurred at a P2P platform, or if a cyber-attack occurred at a P2P platform, or if the P2P platform became insolvent, your investment would be affected.
The Orca Investment Platform was built to help reduce these risks through diversification and expert portfolio monitoring.