As with all investment activities, there are risks associated with share lending, but here is how we have managed them:
| Risk | Safeguard |
| The borrower doesn't return your shares. | Your shares are secured by collateral in the form of US treasuries for Trading 212 UK and cash for Trading 212 Markets, protected as any other client investment. |
| Intraday price volatility. The value of your lent shares can increase, or the collateral value can decrease, leaving you insufficiently collateralised. | The collateral is a minimum of 102% of the value of your lent shares and is adjusted daily. |
| Trading 212 and all other parties simultaneously go bankrupt. |
Trading 212 UK Ltd. Up to £85,000 protection by the FSCS (Financial Services Compensation Scheme)
Up to €20,000 protection by the ICF (Investors Compensation Fund). You can check the full protection here. |
How are my lent shares protected?
You will receive collateral of at least 102% of the value of the lent shares. The collateral will be in the form of US treasuries for Trading 212 UK and cash for Trading 212 Markets. It will be adjusted daily to match the value of the shares. The collateral will follow the same regulatory rules as your other investments.