The Oxyile Model
Oxyile is built on a simple premise: capital should move directly between verified UK parties without opaque bank intermediation. Investors allocate micro-lots of capital into individual loan handshakes — each one a bilateral agreement with a named borrower, recorded on-platform and anchored to an on-chain reference for auditability.
Unlike pooled fund structures where you buy exposure to a black-box portfolio, Oxyile gives you line-of-sight into every handshake you participate in: borrower profile, proposed term, interest band, collateral position (where applicable), and repayment schedule. You negotiate, accept, or pass — the platform facilitates; it does not substitute its balance sheet for yours.
Smart contract handshakes
Each funded loan is memorialised as a handshake — a digital agreement that binds offer terms, acceptance timestamp, and repayment obligations. A lightweight smart-contract reference on Polygon Amoy (testnet during beta) provides an immutable audit trail without requiring investors to manage private keys or gas fees directly.
Handshakes are not speculative tokens. They are compliance-grade records that mirror the legal loan agreement executed on-platform, giving both parties a shared source of truth.
- Offer → counter-offer → acceptance workflow with full version history
- On-chain hash references for dispute resolution and regulatory audit
- Automated status transitions: pending, active, repaying, closed, defaulted
Direct P2P matching
The matching engine surfaces borrower proposals that align with your risk appetite filters — term length, interest band, collateral class, and geographic concentration. There is no proprietary trading desk intermediating spreads. When you fund a handshake, your capital flows through segregated client money rails to the borrower upon mandate confirmation.
This direct model means your return is not diluted by fund management fees layered on top of bank spreads. Oxyile charges transparent platform fees disclosed before you commit — no hidden FX margins or trailer commissions.
Escrow & settlement
Funds are held in escrow until all pre-disbursement conditions are satisfied: KYC clearance, Direct Debit mandate activation, guarantor confirmation (if required), and handshake acceptance by both parties. Settlement is triggered programmatically — not manually — reducing operational risk and settlement lag.
Risk & Compliance
Peer-to-peer lending is regulated activity in the United Kingdom. Oxyile operates a compliance-first architecture designed to meet the standards expected under FCA supervision, even as our authorisation application remains in progress.
FCA framework
The Financial Conduct Authority (FCA) regulates P2P platforms that facilitate loan agreements between lenders and borrowers. Key obligations include fair customer treatment, clear risk disclosures, operational resilience, and appropriate due diligence on both sides of the market.
- Investor categorisation and appropriateness assessments before first commitment
- Transparent disclosure of platform fees, default rates, and historical performance
- Complaints handling via our Support Desk with published response timelines
- Anti-money laundering (AML) and know-your-customer (KYC) checks on all participants
Capital at risk
Your capital is at risk. P2P lending is not a savings product. Borrowers may default, and you may lose part or all of the money you lend. Returns are not guaranteed, and past performance of any borrower cohort is not a reliable indicator of future results.
Oxyile does not provide investment advice. All lending decisions are yours. Diversify across multiple handshakes, term lengths, and risk tiers to reduce concentration exposure.
FSCS coverage
Peer-to-peer loans are not covered by the Financial Services Compensation Scheme (FSCS). If a borrower defaults or the platform ceases operations, there is no government-backed guarantee protecting your lent capital.
Oxyile mitigates platform-level risk through segregated client money accounts, operational wind-down planning, and transparent loan-level reporting — but these measures do not equate to deposit protection. You should only lend amounts you can afford to lose entirely.
Returns Engine
Oxyile's returns engine is designed for investors who want granular control over yield generation — combining micro-lot deployment, negotiated interest bands, and systematic reinvestment into new handshakes as capital is returned.
Micro-capital snowball
Rather than requiring large minimum commitments, Oxyile supports micro-lot allocations — allowing you to spread £50, £100, or £250 slices across many handshakes. As repayments arrive (principal + interest), returned capital can be automatically redeployed into new opportunities, compounding your effective deployment rate over time.
- Fractional participation in loans above your per-handshake budget
- Reinvestment queues prioritised by your saved filter preferences
- Snowball visualisation in the investor dashboard showing cumulative deployed vs. idle capital
Variable yields
Interest rates on Oxyile are negotiated, not fixed by a central treasury. Borrowers propose bands; investors counter-offer. The agreed rate reflects credit risk, term length, collateral quality, and guarantor backing — producing a yield curve that is market-driven rather than administratively set.
Target rate bands during beta are illustrative (typically 5–12% gross per annum depending on risk tier). Actual returns will vary based on defaults, early repayments, and your portfolio composition. Platform fees are deducted from gross returns as disclosed at commitment time.
Portfolio reinvestment
The reinvestment engine monitors maturing handshakes and idle wallet balances, surfacing ranked opportunities that match your strategy profile. You can operate in manual mode (review each opportunity) or semi-automatic mode (auto-allocate up to a configured cap per handshake).
Compounding works best with diversification. A portfolio of twenty micro-lots across varied terms typically exhibits smoother cash-flow than a single large commitment to one borrower.