What percentage does Loopa take?

At Loopa, we only charge if the case is won or there is monetary recovery. Our model is based on a success structure: if the case does not have a favorable outcome, the client does not have to reimburse anything. We assume the financial risk of the litigation or arbitration, which fully aligns our interests with those of the funded party. Participation in the economic outcome Our standard compensation consists of a percentage of the amount recovered, typically ranging from 20% to 40%, depending on factors such as: - The legal risk of the case - The procedural stage at which funding is requested - The estimated duration of the process - The jurisdiction and level of uncertainty - The required capital and agreement structure This percentage is established in advance in the Litigation Funding Agreement (LFA), ensuring transparency and predictability from the outset. Preferred return: protection in low recovery scenarios In addition to the percentage on the outcome, in many cases Loopa agrees to a preferred return, acting as a kind of minimum return for the fund in scenarios where the case is resolved for an amount lower than expected (e.g., through an early settlement or partial recovery). This preferred return is calculated as a multiple on the invested capital (e.g., 1.5x or 2x), and is triggered when the agreed percentage on the outcome does not reach that minimum threshold. Practical example: Let's say Loopa invests $1 million to fund a case, under the following terms: 30% participation on the amount recovered, and Preferred return of 2x the invested capital Scenario 1: The case is successfully resolved with a favorable judgment of $10 million. → Loopa receives 30%, i.e., $3 million. Scenario 2: The case ends with a settlement for only $4 million, below the initially projected value. → Instead of the 30% (which would be $1.2 million), the 2x preferred return is activated. → Loopa receives $2 million, doubling its original investment. This mechanism protects our investment in conservative scenarios, without affecting the agreement's transparency: the client knows from the start what our participation will be in case of success, and how the return behaves in different scenarios. In summary, Loopa typically receives between 20% and 40% of the economic outcome, but a preferred return can also be agreed upon to balance the risk when a lower-than-expected outcome is anticipated. In all cases, we only charge if something is won or recovered, and we never demand more than what the case actually yields. Want a personalized proposal for your case or portfolio? Fill out our form and we will evaluate your situation confidentially.