The auction process works as follows:
Each investor specifies the amount they want to invest and the minimum return they want.
The funding is then allocated to the investors based on these criteria.
Those who ask for the lowest minimum returns will win the auction.
The funding amount is distributed among the investors by ranking their bids in ascending order of the minimum returns asked.
The investor who is the last to receive any allocation will set the return rate for all allocated investors.
For instance, if there is a funding request of 1000€ and 4 investors want to invest 400€ each, with the following minimum rates of return:
Investor A: 4%
Investor B: 5%
Investor C: 6%
Investor D: 7%
Investors A and B will fulfill their bids entirely, and investor C will get the remaining 200€. Since investor C is the last one to achieve any amount allocation and is the first investor to not fulfill their bid entirely, he will set the return rate of the project. Therefore, investors A, B, and C will be awarded a 7% interest rate for this project.
For more information, please contact Daskapital at support@daskapital.eu.
