FAQs
Detailed answers about litigation funding
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What is litigation funding?
It's a mechanism that allows litigation costs to be covered without the client having to pay them up front. The fund only recovers its investment if the case is successful.
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Who can apply for funding?
Both individuals and legal entities can access financing, whether they represent a client, have a direct economic interest, or need capital.
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How is the financing agreement structured?
We sign a master funding agreement and establish a pledge over the litigation rights as collateral, ensuring transparency and alignment of interests.
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What happens if the case is lost?
The client doesn't have to return anything. We assume the economic risk of the litigation and only recover the investment if the case has a favorable outcome.
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How does funding affect case management?
The client and their legal team retain full control over the strategy and decisions. Loopa maintains a passive role in the course of the process.
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What percentage does Loopa take?
Our share varies depending on the risk and stage of the case, but it usually ranges between 20% and 40% of the economic outcome, if the case is succesful.
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What types of cases does Loopa finance?
We finance all types of claims with an economic outcomes, both judicial and arbitral, regardless of the jurisdiction or procedural stage in which they are in.
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Is it debt?
This is not debt in the traditional sense. The capital is not repaid if the case is unsuccessful, and it does not appear on the balance sheet as a conventional financial liability.
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What are the criteria for investing in a case?
Our main criteria for deciding whether to invest in a case are based on the legal merits, the procedural timeline, and the financial solvency of the counterparty.
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