We will only borrow your securities if you have explicitly given your consent by opting in. In our set-up, we are the borrower of your securities, which makes us your counterparty. When we borrow your securities, the legal ownership transfers from you to us. We then lend these securities to carefully selected borrowers in the market. Legal ownership is then transferred to the borrower. In return, we provide you with collateral, and you receive a compensation payment on a monthly basis for active loans.
The amount you can earn from lending your securities depends on market demand and the composition of your portfolio. Your securities will only be lent out when there is demand for them. After deducting the costs we pay to our service providers, we split the borrower’s fee we receive for your securities with you, 50/50.
If you opt in, all the shares, ETFs and bonds in your portfolio may be lent out. This means that you can’t choose which securities can be lent.
As you remain the economic owner of the securities, your position will still be exposed to market fluctuations. You can still sell your securities on loan at any time.