Private credit — also called “private lending” or “direct lending” or “private debt” — refers to a type of financing where investors lend money directly to businesses, without going through a traditional bank or public market.

Unlike bank loans, which are funded using customer deposits, private credit is funded by private investors, such as asset managers, institutional funds, or high-net-worth individuals. These loans are not listed or traded on public exchanges — they are private agreements between the lender and the borrower.

Because of this direct, non-public nature, the terms of private credit deals can often be more flexible. Lenders and companies can negotiate terms that suit both parties, including customised repayment schedules, interest rates, and collateral requirements. This makes private credit a valuable option for businesses that need capital but may not meet the strict criteria of banks, or that prefer alternative funding to issuing equity.

For investors, private credit offers an alternative asset class that may provide higher yields than traditional fixed-income investments, though it typically involves longer holding periods and less liquidity. As a result, private credit is playing a growing role in portfolios that seek diversification, income, and exposure to real-economy lending opportunities.

ALFI offers an 11.00% USD annual yield, before an 0.55% annual management fee.

The interest is split into four quarterly payments, with the management fee deducted from each distribution before it is paid into your Altify account.

ALFI offers higher yields primarily due to its private nature and the associated liquidity premium.

• Private Nature and Liquidity Premium: Unlike publicly traded investments, private credit is not easily bought and sold. This illiquidity demands a premium – an additional return that compensates investors for the longer holding periods.
• Expertise and Complexity: Sourcing, structuring, and managing private credit transactions require significant expertise and due diligence. This complexity justifies the expectation of higher returns to reward investors for the associated effort and risk.
• Market Inefficiency: Private credit markets often exhibit lower transparency and efficiency compared to public markets. This relative inefficiency can create opportunities for higher returns.

There is a mismatch between the structure of litigation and traditional lending criteria, meaning law firms often struggle to secure the funding they need through traditional channels. Banks are not set up to lend against the future proceeds of legal cases, particularly when those cases have uncertain timelines.

Litigation finance fills that gap. Funders like Fenchurch Legal provide flexible, fast funding solutions that align with the structure and cash flow needs of legal claims. The rates Fenchurch Legal charges reflect this speed, and the specialist expertise involved — something traditional lenders simply don’t offer.

These funding solutions are specifically designed for law firms, unlike traditional loans, which tend to have rigid terms and slow approval processes.

While After-The-Event (ATE) insurance helps reduce downside risk, it doesn’t change the fact that law firms need flexible, case-aligned finance. And there's still the complexity involved for a funder in assessing cases and monitoring performance, which is why litigation finance requires specialist expertise.

Fenchurch Legal offers tailored facilities. Once a law firm has a facility in place, firms can draw down funds as needed to support new cases. Interest is only paid for the time the funds are used, so if a case settles early, the loan can be repaid, and the funds can be drawn down again on future cases. This provides an efficient, revolving source of funding.

Issued by Altify, ALFI is a security token launched on the Bitcoin Liquid Network, designed to provide investors with exposure to a diversified portfolio of loans made to UK-based law firms structured as a note issued by Fenchurch Legal.

Each ALFI token is backed by $1.00 of a Fenchurch Legal 2-year USD note, ensuring a 1:1 ratio between the token and the underlying note. This structure provides investors transparency and a stable, asset-backed investment opportunity in legal finance.

Yes, investors can apply to sell and redeem their ALFI holdings for USDC or USDT with just 14 days' notice. However, redemption requests are subject to market conditions and cannot be guaranteed.

Additionally, if you decide to sell before the investment’s maturity date you’ll forfeit any accrued interest and incur a 5% early redemption fee based on your total invested amount. This fee is applied when your redemption request is approved.

Example: If you invest 100 USDC/USDT and receive 100 ALFI tokens on 1 January 2025, then on 10 December 2025, nearly 12 months later, you decide to sell all your tokens, you would need to apply for redemption with 14 days' notice. After approval, a 5% fee is applied, your accrued interest is removed, and on the specified date, you would receive 95 USDC/USDT.

💡 Lock-up periods refer to you needing to keep all of your funds invested for a specific period of time.

💡 Redemptions refer to you being able to pull some or all of your money out of a private credit investment.

Investing in legal finance, and private credit as an asset class, involves three main risks:

Default Risk
This occurs if the borrower, Fenchurch Legal, is unable to repay its loan due to case outcomes or financial instability. To mitigate this, Fenchurch Legal issues senior loans, ensuring they are first in line for repayment if a law firm faces trouble. All loans are secured by the underlying legal cases and director guarantees from the borrowing law firms. Additionally, Fenchurch Legal mandates After-the-Event (ATE) insurance, which covers all disbursements and fully reimburses Fenchurch in the event of an unsuccessful case. By diversifying across numerous firms and cases, the impact of a single default is further reduced.

Liquidity Risk
Since ALFI tokens are not traded on a public market, there is a risk that your 14-day redemption notice may not be approved, potentially locking up your investment for longer than expected. Altify mitigates this by closely managing the issuance of ALFI tokens, ensuring new tokens are only created with matching demand. This allows Altify’s investment team to monitor and meet liquidity reserve requirements effectively.

Insolvency Risk
If Altify were to close, there is a risk since ALFI tokens are a liability on Altify’s balance sheet. However, this is mitigated by fully segregating client and operational capital, and by maintaining a 1:1 ratio of ALFI tokens to Fenchurch Legal bonds on the balance sheet. In the event of a closure, the corresponding bonds would be transferred to ALFI token holders on a 1:1 USD basis.

Additionally, the ALFI tokens are digital asset securities. Every investment in such financial instruments, whether tokenised or non-tokenised, is associated with certain risks, such as - but not limited to - risks inherent to regulatory changes, taxation risks, investment-specific risks, market risks, insolvency risks. Risks may arise individually or cumulatively, and, in the worst case, the investor may lose the entire value of their investments. Please consult your investment advisor before making any investment decisions. It's important to carefully assess your risk tolerance and fully understand the potential consequences of investing in digital asset securities like ALFI tokens. Altify does not provide financial advice, and all investors are encouraged to seek professional guidance tailored to their individual financial situations before proceeding with any investment.

Please refer to our Private Credit Risk Disclosures as well as our General Risk Disclosures.

Altify investors can get started with just 100 USDC/USDT.

Altify charges an annual management fee of 0.55%, calculated on your total invested amount and deducted from quarterly distributions.

‍Additional fee considerations:

• Early Redemption Fee: If you request and are approved to redeem your ALFI tokens before the investment's maturity date with 14 days' notice, a 5.00% early redemption fee will apply to the total invested amount, including accrued interest. Please note that redemptions are subject to market conditions and cannot be guaranteed.
• Fiat Currency Conversion Fee: When depositing a fiat currency, you’ll need to convert it to USDC or USDT before investing in ALFI, incurring a transaction fee based on your Altify Rewards level. A complete list of fees for other Altify investments is available here.

Yes, we are regulated across multiple jurisdictions.

Europe
Coinpanion Crypto Services Sp z o.o. (“Altify EU”) is a Virtual Asset Service Provider (VASP). Altify EU is a private company incorporated in the Republic of Poland. Altify EU is registered as a VASP in Poland and appears on the Polish VASP register bearing KRS Number 0001030633 and NIP Number 7252330350. Altify EU is registered to provide exchange and/or intermediation services pertaining crypto assets and related means of payment. Altify EU has adopted and maintains an AML policy that reflects and is compliant with the applicable local laws and the FATF’s Risk Based Approach to AML/CFT and PF measures.

South Africa
Altify SA Capital (Pty) Limited (“Altify Capital”) is an authorised financial services provider (FSP) in the Republic of South Africa with registration number 52727. Altify Capital holds a non-advisory Category I and Category II licence from the FSCA in respect of a wide range of financial products including crypto assets, shares, money market instruments, bonds, warrants, certificates and derivative instruments. More information is available directly from the FSCA here. Altify Capital is likewise an Accountable Institution registered with the Financial Intelligence Centre (FIC) and maintains a comprehensive AML policy and RMCP.

Altify SA DAS (Pty) Limited (“Altify Crypto”) is a Crypto Asset Services Provider (CASP) with registration number 53289. Altify Crypto holds a non-advisory Category I and Category II licence from the FSCA in respect of crypto assets. More information is available directly from the FSCA here. Altify Crypto is likewise an Accountable Institution registered with the Financial Intelligence Centre (FIC) bearing registration number 54051 and maintains a comprehensive AML policy and RMCP.

It’s important to note that Altify crypto accounts do not fall under local banking laws and that investments in cryptocurrencies, at this time, are not covered by the Financial Ombudsman Service or subject to protection under the Financial Services Compensation Scheme.

The interest calculation follows the 30/360 convention, assuming each month has 30 days and the year has 360 days, to ensure consistent quarterly and monthly payments.

For example, if you invest 10,000 USDC/USDT in ALFI tokens, your annual interest would be 1,100 USDC/USDT (11% of 10,000 USDC/USDT). Each quarter, you would receive approximately 275 USDC/USDT, minus the applicable management fee. Monthly, this would be roughly 91.67 USDC/USDT, before the management fee.

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ALFI is not a cryptocurrency. It’s a security token that is backed 1:1 by 2-year USD Fenchurch Legal Finance notes. Each token is issued, recorded, and managed on the Liquid Network, a sidechain of the Bitcoin blockchain. Investors hold their ALFI tokens in their registered wallet on ALFI.

Yes, we do. To begin the process, please contact our Support Team at support@altify.app to request the corporate onboarding information.To open a corporate account, you will need to provide the following details:

• A document confirming the person opening the account is authorised to act on behalf of the company.
• A brief description of the company’s activities and the purpose for opening the account.
• Company registration documents (e.g. Certificate of Incorporation).
• A document outlining the company’s ownership and control structure (e.g. Organogram, Shareholder Register, or Capitalisation Table).
• If applicable, the company's Shareholders Agreement.
• Proof of the company's bank account (e.g. a bank statement).
• An indication and proof of the source of funds.
• Proof of the company’s registered address (not older than 3 months).
• ID documents and proof of address (not older than 3 months) for every shareholder owning more than 10% of the company. If another entity owns more than 10%, we will also need information on the ultimate beneficial owners (UBOs) who are natural persons.
• If the company provides financial services to third parties, a copy of the company's anti-money laundering (AML) and counter-terrorism financing (CTF) compliance programme will be required.

Please ensure all documents are up to date and meet the specified requirements.

No, while ALFI tokens issued at different times will be identical with respect to price and will always be fully backed by $1.00 worth of a Fenchurch Legal 2-year USD note, ensuring a 1:1 ratio between the token and the underlying note. The maturity date and annual yield may be different from one issuance to the next.

As an investor, you’ll always be shown all the important details upfront before you make an investment.