Interest earned in one month is paid out during the following month.
You authorize a transfer of $10,000 to AlphaFlow.
AlphaFlow receives your $10,000 and starts investing it into a few different loans.
AlphaFlow invests your funds across 75 loans, and you are owed 28 days of interest.
Lenders debit borrowers to collect for February’s interest.
Lenders distribute earnings to AlphaFlow.
AlphaFlow distributes earnings to investors on the last day of the month: you receive your 28 days of interest from February, minus a 1% AUM fee.