What happens if the case is lost?

One of the main advantages of litigation funding is that the client does not assume the economic risk of the process. At Loopa, we work under an investment model known as "non-recourse", which means that we only recover the funds invested if the case is successful. If the litigation or arbitration does not result in a favorable outcome, the client does not have to repay anything. What does it mean for funding to be "non-recourse"? When we say that our funding is "non-recourse", we mean that the fund assumes 100% of the financial risk. This means: If the case is lost, the client does not have to reimburse the invested capital. No debts or outstanding interests are generated with Loopa. The relationship ends with no further financial consequences for the funded party. This model protects companies, individuals, and law firms from the high costs that a legal or arbitral dispute may entail, without compromising their operational resources or liquidity. Why do we assume the risk? At Loopa, we conduct a rigorous analysis before deciding to fund a case. We study its legal viability, the likelihood of success, the potential recovery amount, and the associated costs. We only invest when we are convinced of the merit and legal strength of the case, allowing us to assume the financial risk responsibly. This approach also ensures that our interests are fully aligned with those of the client: we only win if the case is successfully resolved. We do not intervene in the legal strategy, but we support the process financially so that the client has the necessary resources at each stage of the litigation. What if only a part is recovered? In cases where the outcome is partial — for example, if less is recovered than expected — Loopa only participates in what is actually recovered, according to the agreed percentage in the contract. We never demand more than what is available, and a negative balance is never generated for the client. In summary, if the case is lost, the client does not have to repay the funds received. Loopa assumes the financial risk of the litigation or arbitration, allowing access to justice without putting personal resources at risk or taking on debt in the event of an unfavorable result Do you have a strong claim but are concerned about the cost of the process? Let's talk. At Loopa, we finance cases with merit and assume the risk with you.