The Provision Fund is in force for projects funded before 31.12.2021.

The Provision Fund operates as follows:

1. CROWDESTOR has made an initial investment in the Provision Fund of 50,000 EUR.
2. CROWDESTOR has devoted its commission in the amount of 0,5-1% from each project volume funded in the period from March 2019 until December 2021 into the Provision Fund. With exception of Flex, Tokens, and Equity Ticket-type projects.
3. Each project has its budget attributed from the Provision Fund that is calculated according to the method described below.
4. The Platform will distribute the funds in a proportionate amount according to the Provision Fund's distribution rules.

Calculation method

See the example below: 

The outstanding principal of the particular project – 100’000 EUR 

The total amount of all outstanding projects – 35’000’000 EUR 

Provision Fund Value: 442’554 EUR 

• 100’000/35’000’000x100%=0.29% 
• 0.29%x442’554=1’283.41 EUR 

In this case, the total amount of 1’283.41 EUR would be distributed to investors in proportion to the amounts invested by them. 

Distribution rules

For projects funded before 04.03.2021, the Fund is used to compensate the following costs:

1. Late payment fee - in case the Borrower has repaid the principal and initial interests but was not able to cover the late payment fee due to extraordinary circumstances.
2. Expenses related to legal enforcement - in case the CROWDESTOR has terminated the agreement with the Borrower and submitted this case to the court.
3. Capital loss – in case the Borrower is subject to default and the capital is not recovered in full during the legal proceedings.

For projects funded after 04.03.2021, but before 31.12.2021, the Fund will be used to compensate the following costs:                                                                                                                                                      

1. Expenses related to legal enforcement - in case the CROWDESTOR has terminated the agreement with the Borrower and submitted this case to the court.
2. Capital loss – in case the Borrower is subject to default and the capital is not recovered in full during the legal proceedings.