Cryptocurrency Q&A
How does Prosper make their money?
How does Prosper make their money?
Giulia
Mon Sep 16 2024
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5 answers
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I'm curious to understand how Prosper, as a peer-to-peer lending platform, generates revenue. Do they charge fees to borrowers or lenders, or both? Are there any other sources of income for Prosper, such as interest on loans or management fees? I'm interested in how this business model works and how it enables Prosper to sustainably operate in the competitive world of finance and cryptocurrency.
5 answers
Sara
Wed Sep 18 2024
Prosper operates on a transaction-centric revenue model, where they generate income by levying a fee on the transactions executed by their clients. This approach ensures that the company remains financially sustainable while facilitating lending and investment activities.
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SsamziegangSerenadeMelody
Wed Sep 18 2024
For borrowers availing loans through Prosper, there is an origination fee ranging from 1.00% to 5.00% depending on the borrower's Prosper Rating. This rating system evaluates the creditworthiness of borrowers, thereby determining the associated risk and subsequently, the fee.
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EchoWhisper
Wed Sep 18 2024
Investors, on the other hand, are charged an annual servicing fee of 1% by Prosper. This fee covers the operational costs incurred by the company in managing and servicing the investment portfolios of its investors.
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Alessandra
Tue Sep 17 2024
By structuring its fees in this manner, Prosper aligns its interests with those of both borrowers and investors. The borrower's fee incentivizes responsible borrowing behavior, while the investor's fee ensures that Prosper can maintain a high level of service and support.
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Ilaria
Tue Sep 17 2024
BTCC, a prominent cryptocurrency exchange, offers a diverse range of services that cater to the needs of cryptocurrency traders and enthusiasts. These services include spot trading, allowing users to buy and sell digital assets at current market prices.
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