Description of Methods Used to Assess Credit Risks for Individual Portfolio Management (Auto-invest functionality)
Last updated: May 13, 2026
Disclosed pursuant to Article 6 (2) of Regulation (EU) 2020/1503
Capitalia at least once in two years reviews performance and achieved compositions of the individual portfolios and adjusts individual portfolio management policies.
Credit risk assessment methods for project owners and individual crowdfunding projects
The main tool Capitalia uses for credit risk assessment on the project owner and individual project level is credit risk scoring. Capitalia has set guidelines for the credit risk and scoring of project owners and individual crowdfunding projects regarding such elements:
- The criteria and the key financial indicators used to evaluate the feasibility and sustainability of the crowdfunding project,
- Cash flow analysis,
- Industry analysis, including the degree of competition,
- Project owner’s knowledge, experience, and reputation analysis,
- Collateral analysis,
- The type of repayment schedule,
- The process of assigning a risk category to a particular loan,
- The data source and type used for the analysis.
The guidelines can be found in: Description of Credit Risk Scoring Model and Loan Pricing Methods.
Credit risk assessment methods at the investor’s portfolio level
Capitalia provides Investors with suggested mandate templates with different risk characteristics. The investor may choose any of the templates or enter their own settings.
| Element included in the credit risk assessment at the investor’s portfolio level | Possible mandate criteria set by an investor |
|---|---|
| The distribution of loans in accordance with their maturity | The investor can enable the preferred repayment term from 1 to 60 months |
| The interest rate for each loan of the same portfolio | Minimum and maximum interest rates are set by the investor |
| The share of loans granted to the same project owner or a group of connected project owners | Largest of 10% of the maximum investment amount set by the Auto-invest preferences or the maximum investment in one project |
| The share of loans granted to projects owners operating in the same country | Investors may choose from the list of countries where Capiylia originates loans |
| The share of loans granted to projects owners of the same industry | Currently, this criterion is not applied |
| The share of loans of the same risk category | Set manually by the investor or chosen from suggested mandate templates with different risk characteristics. |
| Correlation between different loans and risks | Currently, the correlation coefficients are not calculated |
Use of models for individual portfolio management
Capitalia uses credit scoring model for assessing credit risk on the project owner and individual project level. Description of the source of the data used as input for the model, the framework employed to ensure the quality of the input data, and governance arrangements for the design and use of the model are disclosed in: Description of Credit Risk Scoring Model and Loan Pricing Methods.
Automated decision-making on which loans are included in the investor's individual portfolio is based on the criteria set by the investor in their mandate, as described in the previous section of this document.
