The ALFI token offers an 11.00% annual yield with quarterly cash distributions. This represents the Annual Equivalent Rate (AER) of return over a year, excluding compounding effects.

The 11.00% yield is before Altify’s 0.55% annual management fee, which is deducted from each quarterly distribution.

The yield is fixed in USDT, a stablecoin backed 1:1 with the USD. Both the quarterly income and the final principal repayment are automatically deposited into your Altify account.

Private credit loans, which are the underlying cash-generating assets behind the ALFI token, carry higher interest rates because they remove traditional intermediaries like banks, allowing investors to earn higher yields directly from borrowers.

Banks, which often specialise in more conventional lending, typically don't offer the same flexibility or expertise in areas like legal finance, where specialist legal finance credit providers can step in, such as Fenchurch Legal.

This added customisation and direct lending, along with the lack of a secondary market, means borrowers must offer higher rates to attract investors willing to take on the added risk and illiquidity.

The ALFI token 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 held within a bond issued by Fenchurch Legal.

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

Investors can sell their ALFI tokens with just 14 days' notice. However, if you decide to sell your tokens before their maturity date, you will 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 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 USDT.

Important: Redemption requests are subject to market conditions and cannot be guaranteed.

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

1. 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 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.

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2. 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.

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3. 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.

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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 extended Private Credit Risk Disclosures as well as our General Risk Disclosures.

Altify investors can get started with just 100 USDT.

At Altify, we charge three fees relating to the ALFI tokens. These include:

Annual Management Fee

A 0.55% Annual Management Fee is calculated against on your total invested amount. This amount is charged and deducted from the quarterly distributions made into your account.

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Redemption Fee

Investors can apply to redeem your ALFI tokens before the investments’ maturity date with 14 days' notice. However, redemptions are subject to market conditions and cannot be guaranteed. If your request is approved, a 5.00% early redemption fee will apply to the total invested amount, including accrued interest.

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Transaction Fee (Only applicable if you’re making a fiat currency deposit)

To convert from a fiat currency to USDT, or vice versa, incurs a transaction fee that is based on your Altify Rewards level ranging from 0.33% - 0.50%.

A complete list of fees for other investments can be viewed 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.

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Seychelles

Revix International Limited (“Altify International”) is a Virtual Asset Service Provider (VASP). Altify International is an International Business Corporation incorporated in the Republic of Seychelles. Altify International provides exchange and/or intermediation services pertaining to crypto assets. Altify International is not a regulated VASP in the Republic of Seychelles and is not subject to the regulatory oversight and supervision of the Seychelles Financial Services Authority (FSA). Altify EU Revix 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.

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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 quarterly interest on the ALFI token is calculated based on an 11.00% Annual Equivalent Rate (AER), before the 0.55% annual management fee is applied.

The interest is split into four quarterly payments, with the 0.55% management fee deducted from each distribution before it reaches your Altify account. The 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 USDT in ALFI tokens, your annual interest would be 1,100 USDT (11% of 10,000 USDT). Each quarter, you would receive approximately 275 USDT, minus the applicable management fee. Monthly, this would be roughly 91.67 USDT, before the management fee.

All payments are automatically deposited into your Altify account.

Distributions are made by Fenchurch on the following dates:

31 March

30 June

30 September

31 December

Payments will be allocated to Altify accounts within 7 business days

New ALFI tokens will be issued based on both demand from investors and from Fenchurch Legal for legal finance. We expect 2-5 million ALFI tokens will be issued each month. Since the ALFI tokens are asset-backed, the issuance of new tokens does not dilute existing token holders.

ALFI tokens are not cryptocurrencies. They are digital assets that are backed 1:1 by Fenchurch Legal Finance bonds. Each token is issued, recorded, and managed on the Liquid Network (a sidechain of the Bitcoin blockchain). Investors can 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.

The ALFI tokens issued in different series will be identical with respect to price and will always be fully backed by $1.00 worth of a Fenchurch Legal 2-year USD bond, ensuring a 1:1 ratio between the token and the underlying bond. The maturity date and annual yield, however, may be different from one issuance to the next.

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