At Daskapital, the interest rates are determined by the promotors and investors themselves.
First, project promoters, when applying for funding, set the maximum rate they are willing to pay for the financing. It's important to note that the higher this rate, the more interest it attracts and the higher the probability of securing financing.
Subsequently, when the funding request is made public, an auction takes place, in which investors compete with each other to participate in the financing. To do so, investors declare the amount they wish to invest and minimum return they are willing to accept.
Finally, investors' bids and investment amounts are ordered in increasing order of interest rates so that the lowest requested interest rates are considered first fo fulfill the funding request amount. The final interest rate (which will be the same for all investors) is set by the first bid that's left out.
If you need further clarification, don't hesitate to get in touch with us at support@daskapital.eu.
