Crowdhive / Risks and defaults / How should I use risk grades?
How should I use risk grades?
09/24/2026
1 min
Every project carries a grade from AAA to B. The grade and the interest rate move together: AAA projects pay around 5-7% and carry the lowest assessed risk, while B projects pay 17% and above and carry meaningfully more risk. A higher rate is compensation for risk, not a gift. Use grades to build a mix that matches your own risk tolerance rather than concentrating on the highest rate.
Related articles
What happens if a borrower pays late?
The borrower receives formal notice and a defined grace period to cure the missed payment. Many delays end there. If the default is not cured, the loan can be accelerated and collateral enforcement begins.
How are loans monitored after funding?
Monitoring continues through the life of the loan: whether interest arrives on schedule and whether the source of repayment is developing as planned, for example construction milestones or portfolio performance. If a borrower misses payments, BellaVista Invest One AG acts as Collateral Agent and conducts recovery on behalf of all investors, so you never need to pursue a borrower in court yourself.
Can I lose my invested capital?
Yes. CrowdHive investments are not bank deposits and are not covered by any deposit-guarantee or investor-compensation scheme. Collateral and centralised recovery reduce risk but do not remove it: if enforcement proceeds fall short of the outstanding debt, investors bear the loss on the remainder. Never invest money you cannot afford to lose.
What are the main risks of investing?
The main risk is credit risk: a borrower may pay late or fail to repay. Related risks include country risk for projects outside Europe and currency risk where a borrower earns revenue in a local currency while the loan is in EUR or USD. Returns of 10-17% exist precisely because these risks exist. Investing involves risk, including the possible loss of capital, and returns are not guaranteed.
What happens if a borrower pays late?
The borrower receives formal notice and a defined grace period to cure the missed payment. Many delays end there. If the default is not cured, the loan can be accelerated and collateral enforcement begins.
How are loans monitored after funding?
Monitoring continues through the life of the loan: whether interest arrives on schedule and whether the source of repayment is developing as planned, for example construction milestones or portfolio performance. If a borrower misses payments, BellaVista Invest One AG acts as Collateral Agent and conducts recovery on behalf of all investors, so you never need to pursue a borrower in court yourself.
Can I lose my invested capital?
Yes. CrowdHive investments are not bank deposits and are not covered by any deposit-guarantee or investor-compensation scheme. Collateral and centralised recovery reduce risk but do not remove it: if enforcement proceeds fall short of the outstanding debt, investors bear the loss on the remainder. Never invest money you cannot afford to lose.
What are the main risks of investing?
The main risk is credit risk: a borrower may pay late or fail to repay. Related risks include country risk for projects outside Europe and currency risk where a borrower earns revenue in a local currency while the loan is in EUR or USD. Returns of 10-17% exist precisely because these risks exist. Investing involves risk, including the possible loss of capital, and returns are not guaranteed.