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There Is More To P2P Lending Versus Is Commonly Understood…
- Uncover the concealed potential risks behind P2P financing.
- Discover which potholes you need to avoid to take pleasure from peer to peer profits that are lending.
- Reveals just exactly just how marketing that is p2P exploit both borrowers and loan providers.
In a full world of zero interest levels, peer to peer lending can look tempting that is mighty yield hungry investors.
Avoid being deceived. Your investment revenue depends upon mathematical expectancy (Expectancy=(Gain on an absolute Bet * likelihood of Profit) + (Loss for a Losing Bet * Probability of Loss), or higher commonly understood as “probability times payoff”).
Whenever filtered throughout that lens, the issues with peer to immediately peer lending are apparent:
- Your gain is strictly limited by the attention rate; whereas your loss may be 100% making a negative risk/reward ratio. Read more