(1) Lack of supervision of funding sources.

(2) It is difficult to investigate the liability for breach of contract.

In other words, in the process of peer-to-peer lending, the platform only plays the intermediary role of both borrowers and lenders, providing financing information matching services for both borrowers and lenders, and assisting both parties to complete it smoothly.

The security of deposited funds is low, which may be misappropriated by other personnel such as websites.

1. Borrower

The money you lend to the borrower is unsecured, that is, the borrower does not provide guarantee for the loan (such as house mortgage loan). Therefore, if the borrower defaults and has no money or property, as a lender, there is almost nothing he can do but bear the loss of the remaining unpaid funds.

2. Poor diversified portfolio

Diversification and portfolio is to divide the investment into several parts when considering risks.

3. Operational risks of 3.P2P loan companies.

There is no legal precedent for the bankruptcy of P2P peer-to-peer lending companies, and no one knows the specific consequences accurately. However, many P2P companies have been thundering frequently recently, so they must be cautious before investing.

4. Risk of rising interest rates

In recent decades, we have been in the environment with the lowest interest rate. In fact, interest rates may rise, and it is not known whether it will affect P2P peer-to-peer lending. Now, it is easier to attract the expected 8%.

Legal basis: The first paragraph of Article 176 of China's Criminal Law stipulates that the crime of illegally absorbing public deposits refers to the act of illegally absorbing public deposits and disturbing the financial order. The Supreme People's Procuratorate and the Ministry of Public Security's "Provisions on the Standards for Filing a Case for Prosecution" clearly stipulate the quantitative standards, that is, if the amount of public deposits illegally absorbed or disguised by the unit is more than 200,000 yuan, it is more than1100,000 yuan; Individuals illegally or in disguised form absorbed more than 30 public deposits and more than one happy and fifth deposits, resulting in depositors' direct economic losses of more than100000 yuan, and units illegally or in disguised form absorbed public deposits, resulting in depositors' direct economic losses of more than 500000 yuan. This means that peer-to-peer lending is limited by the legal scale, and the specific goal of successful lending cannot be slightly announced. There are more than 30 individual loan targets, and some loan targets exceeding the maximum investor quota are not restricted by the platform.

2. What does 2.p2p mean?

1, p2p refers to peer-to-peer network:

Peer-to-peer network is a distributed application architecture, which distributes tasks and workloads among peer nodes. It is a networking or network form formed by peer-to-peer computing mode at the application layer. "Peer-to-peer" means "peer, partner, peer" in English, so literally, P2P can be understood as peer-to-peer computing or peer-to-peer network.

2.p2p refers to the Internet financial peer-to-peer lending platform:

P2P is the abbreviation of English peertopeerlending, which means person to person, also called Peer to Peer peer-to-peer lending. It is a folk micro-loan model, which gathers small funds and lends them to those who need them.

3. What are the main risks faced by 3.p2p institutions in peer-to-peer lending?

(1) Lack of supervision of funding sources. (2) It is difficult to investigate the liability for breach of contract. That is, the risk that the borrower cannot repay the principal and interest on time. In the process of P2P peer-to-peer lending, the platform only plays the intermediary role of both borrowers and lenders, providing financing information matching services for both borrowers and lenders, and helping both parties to successfully complete the deposit. The security of funds is low, which may be misappropriated by other people such as websites. 1. The risk of default by the borrower. The money you lend to the borrower is unsecured, that is, the borrower does not provide guarantee for the loan (such as a house mortgage loan). Therefore, if the borrower defaults and has no money or property, as a lender, there is almost nothing he can do but bear the loss of the remaining unpaid funds. 2. A bad diversified portfolio is diversified. Portfolio is the best way to reduce the risk to 1, that is, you should divide the investment into several shares. 3. Operational risks of P2P lending companies There is no legal precedent for the bankruptcy of P2P lending companies, and no one knows the specific consequences accurately. However, many P2P companies have been thundering frequently recently, so they must be cautious before investing. 4. The risk of rising interest rates In recent decades, we have been in the lowest interest rate environment. In fact, interest rates may rise, and it is not known whether it will affect P2P peer-to-peer lending. Now, it is easier to attract investors with expected returns of 8% to 10%. Legal basis: According to the first paragraph of Article 176 of China's Criminal Law, the crime of illegally absorbing public deposits refers to the act of illegally absorbing public deposits or absorbing public deposits in disguise, disrupting financial order. Article 28 of the Provisions of the Supreme People's Procuratorate and the Ministry of Public Security on the Standards for the Prosecution of Criminal Cases under the Jurisdiction of Public Security Organs also clearly stipulates the quantitative standards, that is, if an individual illegally absorbs or conceals public deposits of more than 200,000 yuan, the unit illegally absorbs or conceals public deposits of more than1million yuan; Individuals illegally or in disguised form absorb more than 30 public deposits, and units illegally or in disguised form absorb more than 30 public deposits of One Happy and Fifty; Individuals illegally absorb or disguise public deposits, resulting in direct economic losses of depositors of more than 100,000 yuan, and units illegally absorb or disguise public deposits, resulting in direct economic losses of depositors of more than 500,000 yuan. This means that peer-to-peer lending should be limited by the legal scale and cannot be exceeded. However, judging from the specific targets of successful loans published on the Internet, there are also more than 30 individual loan targets, some of which exceed the maximum investor quota, and the platform has not played a restrictive role.

4. What are the operational risks of 4.p2p peer-to-peer lending platform?

1. Ponzi scheme: Ponzi scheme is the name of investment in the financial sector and the ancestor of Pyramidscheme, which is used by many illegal pyramid schemes to collect money. This scam was invented by a speculator named Charles Ponzi. Ponzi scheme is also called "robbing Peter to pay Paul" and "empty gloves and white wolves" in China. In short, it is to use the money of new investors to pay interest and short-term returns to old investors, so as to create the illusion of making money and then defraud more investment.

2. The cash pool is also called the cash pool. The fund management model was originally developed by the finance companies of multinational corporations and international banks to uniformly distribute the global funds of the group and minimize the net positions held by the group. The fund pool business mainly includes account balance transfer of member companies, daytime overdraft of member companies, active receipt and payment, entrusted lending between member companies, and interest bearing of member companies on deposits and loans of the group headquarters. Different banks have different expressions about cash pools.

3. Unqualified borrower: refers to the P2P company's failure to fulfill its obligation to verify the authenticity of the borrower's identity, to discover or even acquiesce in publishing a large number of false loan information in the name of multiple false borrowers of the company in time, and to absorb public funds. The existence of unqualified borrowers is often accompanied by the high concentration of risks and the concentrated outbreak of default, which is also the fundamental reason for the "running away" and "bankruptcy tide" of many P2P platforms. Problems such as high default rate and irrecoverable overdue funds have seriously affected the overall reputation of P2P industry, and also seriously damaged the interests of investors.

4. False bidding: In order to deceive investors, the project description in false bidding is often unclear, deliberately concealing the borrower's information and not disclosing relevant loan contracts, mortgage certificates and other documents. In order to cover up the truth of false targets, some platforms even use fake ID cards to forge borrowers, fabricate various reasons for borrowing, and maliciously deceive investors.

5. The platform website was hacked: many P2P platforms were hacked. Hackers maliciously withdraw cash by applying for accounts, tampering with data, impersonating investors, etc. "User privacy has been leaked and even funds have been stolen, but these have not yet appeared in newspapers. "Usually hackers will carry out' precise strikes', that is, when a certain online lending platform is' weak'.