Why your return rate may fluctuate

Bondora_ROI

If you are a new investor on our platform and don’t have many repayments from our investments yet, you may notice that your return rate may change significantly overnight.

This happens because of the way we display your return, which is an annualized figure. To calculate your annualized return rate, we account for all actual and overdue transactions at the moment of the calculation. We don’t make any forecast for future payments.

Because fresh portfolios normally have very little or no repayments, any payment (or an overdue payment) can affect the calculated return rate significantly.

With time, as your portfolio accumulates more transactions and the return rate calculation has more data points to use, the figure becomes more stable and less affected by single payments.

Secondary Market Transactions

Additionally, it is important to remember that all Secondary Market transactions affect your portfolio returns. The discount/mark-up rate on the principal of the investments you buy or sell on the Secondary Market will also be accounted for in your return rate accordingly.