Methodology and Formulas for P2P portfolio Analysis

01

General principles

The output must be traceable to the inputs and formulas. Demo profiles are not current market data.

Local computationBasic calculations are done in the browser.

Input dependenceInaccurate or incomplete data leads to an inaccurate result.

Indicative resultIndicators aid analysis but are not a credit rating.

RoundingSome of the displayed values are rounded off, while the calculations use the full numerical value.

02

Diversification Calculator

Positive positions are converted to relative shares. The HHI measures capital concentration, not investment quality.

wᵢ = sumᵢ / total sum HHI = Σ(wᵢ²) Effective number of positions = 1 / HHI Balance score = rounded(effective number / max(number of positions, 2) × 100)

The minimum possible value at n equal positions is 1 / n. The maximum value is 1 when a position contains the entire capital.

Indicative structural interpretation of HHI
HHI	Structure	Interpretation
to 0.15	more distributed	lower concentration along the entered dimension
over 0.15 to 0.25	moderate	several positions have significant influence
above 0.25	concentrated	one or a few positions dominate

Thresholds are a guideline for structure, not proven P2P portfolio safety limits.

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03

Risk Analyzer

Positions are grouped by platform, country, loan originator and credit type. For each of the four main dimensions, the HHI is calculated on the entered shares.

Dimension Score = Rounded(Dimension HHI × 100) Total Score = Rounded((Platform + Country + Publisher + Credit Type) / 4)

Corporate groups and guarantors are calculated separately as hidden concentrations. They are shown in the result, but do not take part in the overall assessment.

Guidance intervals

0–29: lower concentration;
30–59: moderate concentration;
60–100: high concentration.

The score is not a probability of loss and does not assess solvency, arrears or regulation.

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04

Liquidity Analyzer

For horizons of 30, 90, 180 and 365 days, a position is considered available if it has a free balance or is in normal repayment and matures on time. An early exit is also allowed when the entered sell term is on the horizon.

Gross Available Amount(H) = Σ sum of available positions up to horizon H Net amount on early exit = amount × (1 − expense / 100) Liquid Share(H) = Gross Available Amount(H) / Total Portfolio × 100 Average term = Σ(amountᵢ × days remainingᵢ) / Σamountᵢ for normally paid positions

Pending payments, refunds, overdue and blocked items are displayed separately and are not included in standard accessibility scenarios.

The secondary market is modeled by the introduced term and cost. The instrument does not guarantee a buyer, price or actual time of sale.

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05

Portfolio stress test

The active scenarios are sequentially applied to the remaining value: default of the largest issuer, sovereign stress, change in buyback, slowdown, platform freeze and interest rate decline.

Loss on Default = Affected Value × (1 − Recovery) State loss = residual value × affected share × (1 − recovery) Buyback loss = residual value × defaulted share × lost coverage × (1 − recovery without buyback) Deferred income = residual value × yield × affected share × months / 12 Return after decline = residual value × max(return − decline × reinvested share, 0)

Publisher Default automatically selects the publisher with the largest total exposure entered. Freezes and delays block capital temporarily, but do not write it off as a permanent loss.

Because permanent losses are applied sequentially, the combination of scenarios is not a simple sum of their individual results.

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06

Cash flow forecasting

Each position creates a schedule based on the principal remaining, the annual interest rate, the term, the frequency, and the chosen repayment model. Annuity, equal principal, interest only and maturity payment supported.

Period Interest = Remaining Principal × Annual Interest × Months in Period / 12 Annuity = principal × periodic interest / (1 − (1 + periodic interest)⁻ⁿ) Delayed Amount = Payment Due × Delay Share For reinvestment = principal and interest received × reinvested share Reinvestment interest = amount reinvested × annual rate × active days / 365 Effect of waiting = amount to reinvest × rate × days until reinvestment / 365

The delayed portion is moved by the entered number of months. Reinvestment is activated after the entered period in days and accumulates income only for the active days. The chart shows each month of the selected 12, 24 or 36 month horizon.

The model is a scenario, not a repayment plan. Does not include new defaults, fees, taxes or interest rate changes unless modeled through available fields.

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07

Portfolio optimiser

The tool generates three demo scenarios—protected, balanced, and profitable—on preset profiles. This is not a numerical optimization of real investments.

Expected return = Σ(weightᵢ × returnᵢ) Risk index = Σ(weightᵢ × riskᵢ) Deviation from target = |target yield − expected yield|

The number of positions and the maximum share determine whether distribution is possible. Target return and risk tolerance do not generate the weights: they indicate a deviation and a warning. The priority determines which out-of-the-box scenario is marked as closest.

Profiles, returns and risk indices are for demonstration purposes and are not updated by market sources.

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08

Platform comparison

Platforms are compared using demonstration or user input values for yield, risk, liquidity, transparency and diversification. Buyback, regulation and market structure are shown as context.

Total balance = (100 − risk + liquidity + transparency + diversification) / 4

User profiles are saved in localStorage. Embedded profiles are examples and do not update automatically.

The summary balance is a visual guide, not a rating or recommendation. Profitability does not factor into the balance sheet formula.

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09

Loan originator check

The tool contains 15 examined areas in five categories: finance, regulation, history, structure and conduct.

Total completeness = rounded(marked areas / 15 × 100) Category completeness = rounded(marked areas in category / all areas in category × 100)

Financial result, equity, audit opinion, registration, source and date create alerts and next steps. They do not add or subtract points from the completion percentage.

The check mark only means that the user declares a check performed. The tool does not check evidence or assess creditworthiness.

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10

Bulgarian tax helper

The current logic mechanically totals the entered interest, bonuses and cashback, subtracts the entered costs and applies a demo rate of 10% on the positive difference.

Total Income Entered = Interest + Bonuses + Cashback Basis = max(total input income − input expenses, 0) Indicative result = indicative tax base × 10%

The instrument does not determine the legal category of income, the recognition of expenses, the applicable application to the return, tax residency, foreign tax credit or any tax withheld.

This is an organizational model, not a tax opinion. Check the current guidelines at NRA ↗ or consult a qualified specialist.

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11

General restrictions

There is no automatic check on the Internet, registries or databases.
There is no guarantee of future profitability, payment, recovery or liquidity.
Categories and groups depend on how the user enters the data.
Correlations and general economic dependencies may remain hidden.
Scenarios do not model all contractual, legal, tax and regulatory specifics.
Demo profiles should not be used as live market data.
Rounding displayed values may create small visual differences.