About our financial statements and risk of bankruptcy
Goparity is an entity authorised to operate by the Portuguese Securities Commission (CMVM). This certifies that Goparity has the financial, technical, and human resources necessary to conduct business. In the event of a default situation, there is a contingency and continuity protocol that will ensure the continuity of the loan agreements and financial flow.
Goparity acts as an intermediary between investors and promoters. The credit risk, therefore, falls on the promoter, and only the default of the promoter may condition the total recovery of the investors' investments. If Goparity was ever to declare bankruptcy or seek insolvency proceedings, you will be formally notified and an alternative platform will be suggested to you, which will ensure the enforcement of the rights and duties assumed by the projects’ promoters in their relationship with the investors.
In other words, the formal and legal relationship between the investors and the promoters, the lender-borrower relationship, will remain unchanged. The promoters will still have the legal obligation to make the agreed repayments, their schedule remaining unchanged. Thus, if Goparity was to suspend its business activities, either another platform would take on the operational side of the ongoing investments or the relationship between the investors and the promoters would be carried out without an intermediary platform.
The funds deposited at Goparity (the funds which have not been invested) are kept in MangoPay wallets (our payment services provider). They are maintained in escrow accounts on investment-grade banks and segregated from MangoPay's assets. In other words, in the event MangoPay was to declare bankruptcy, the investors' funds are safeguarded and the funds will be promptly made available.
About our continuity mechanism
E-money portfolios and funds from Goparity users are held in MangoPay accounts, ensuring complete asset segregation from Power Parity Lda. (Goparity's parent company). In the event of insolvency or cessation of Power Parity's business, the following scenarios are envisaged:
Delegation of the management and maintenance of the IT platform to a third party, ensuring the continuity of payments to users' portfolios via MangoPay;
Liquidation of electronic money portfolios on MangoPay and transfer of funds to users. Transfer to beneficiaries of all relevant information to follow up on the payment plan for investors.
Given the fact we are confident that our investors are fully protected in case GoParity enters bankruptcy or insolvency proceedings, we are not making our financial information public at the moment.