By placing money in the Loan Vault you are automatically buying debt claims (assets) from Modena. These debt claims are against customers who have used some credit or Buy Now, Pay Later financing from Modena.

Once you have placed your funds in the Loan Vault the platform will automatically sell to you the debt claims. The debt claims are sold in portions to platform users so that no user individually owns fully a debt claim. This is to ensure even distribution of revenues and stability. For example a user might own 1% or 5% or 14.63% etc. of a debt claim.

Debt claims are sold to platform users with a discount. The difference between the selling price and the nominal value is the revenue for the user. Revenue is distributed to the users based on the ownership percentage of the debt claim. As an example a debt claim with a maturity of 30 days and principal amount of 500 € will be sold at a discounted price of 490 €. The platform users who owns that debt claim will earn 10 € for buying a claim of 500 € that matures 30 days. Please note that this is just an example the actual discount rate will depend on the actual debt claim, however on average platform users can expect around 11% ROI p.a.

When the customer makes repayments for part of that repayment that gets credited to the platform users’ account is principal and part revenue. Received repayments will be used automatically for new debt claim purchases. Customer repayments are imported daily to the system.

If the customer fails to make repayments on time then Modena will rebuy the debt claim from the platform user automatically after the customer has been in delay for 35 days.

If you have any questions or need further clarification, please don’t hesitate to contact us by email info@modena.capital or by phone +372 5804 2366. Our support office hours are Mon–Fri, 10:00–17:00 CET.