The Company publishes this information based on the requirements of Article 20(1) of Regulation (EU) 2020/1503 of the European Parliament and of the Council of 7 October 2020 on European crowdfunding service providers for business purposes, and amending Regulation (EU) 2017/1129 and Directive (EU) 2019/1937.

INFORMATION ABOUT THE PROJECT OWNER'S DEFAULTS

The Company considers that there has been a default by the Project Owner in relation to a particular loan if one or both of the following events occur:

1. Insolvency of the project owner; and/or
2. Inability of the project owner to fulfill obligations.

The Company considers that the Project Owner is insolvent if one or more of the following events occur:

• circumstances have arisen that give reason to believe that the Project Owner is likely to default on or otherwise default on its loan obligations in relation to a particular loan in full without recourse to actions, such as realising collateral;
• an application has been submitted for the initiation of insolvency proceedings or similar proceedings against the Project Owner.

The Company considers that the Project Owner is in default if the Project Owner has not made a full payment of the principal amount of the loan for more than 90 (ninety) calendar days.

DEFAULT RATES OF PROJECTS OFFERED ON THE PLATFORM

The annual default rate of the projects offered on the platform for a given year is calculated as a simple average over the calendar year (from January 1 to December 31).

The indicator is calculated using the formula:

ANNOUNCEMENT OF RESULTS

Actual Default Rate

The actual default rate of the loans offered on the platform is calculated as the simple average of the observed annual default rates by risk category.

The rate is calculated using the formula: