How do you calculate the Net Annualized Return (NAR) of the Lending Loop Platform?

The Net Annualized Return (NAR) of the Lending Loop Platform is shown by the Lending Loop Marketplace Index, which is calculated based on the actual historical monthly returns from October 1, 2015 to the our most recent month-end. The return at the end of each monthly period is weighted equally to all other monthly periods and assumes the full reinvestment of all net proceeds (principal, interest, and other proceeds) received over the course of any given month in the current month as of the end of that month. The monthly returns are linked using standard compounding to create a cumulative time series of performance. Each monthly return is calculated using the monthly interest and net recovery proceeds received, less projected losses of loans in arrears during that month (based on the time the last successful loan payment was made) less charge-offs, divided by the beginning of month principal balance for that vintage. Projected losses of loans in arrears is calculated by multiplying the outstanding principal of the delinquent loan by an expected recovery ratio. Data in any performance charts is for informational use only. Historical returns are not a promise of future results.