Litigation funding means that a third party pays the costs of your legal dispute and receives a share of the proceeds if you win. If you lose, you pay nothing back.
What it is, what it costs and who it is for
Litigation funding means that an external funder pays all costs of a legal dispute in return for a share of the success. You hand over the cost risk of your proceedings: lawyers' fees, court fees, experts and, if you lose, the other side's costs as well. If you win, the proceeds are split according to the agreed formula. If you come away with nothing, you owe nothing back.
Unlike traditional litigation funders, AEQUIFIN brings claimants and many sponsors together on one platform. Companies gain an additional benefit: they can outsource proceedings for which they lack the internal budget or capacity.
The funders cover lawyers' fees, court fees, experts and all other costs of the proceedings – and, if you lose, the other side's legal fees as well. You only pay if you win, and then with a share of what you recover. If you lose, you pay nothing back.
The litigation cost calculator shows roughly how large the litigation budget for your case would be: your total cost risk under Section 91 of the German Code of Civil Procedure (ZPO) – your own and the other side's legal fees plus court fees – plus a 5% buffer and trustee fees. For an amount in dispute of €250,000 over two instances, that comes to about €54,000.
How large that share is depends on the case. On the market, litigation funders usually receive between 20 and over 40 percent of the amount recovered. In complex proceedings and arbitration, a minimum multiple is also common: the funder gets back at least 1.5 to 3 times its investment. The higher the risk and the litigation budget, the higher the share.
How the proceeds are distributed at AEQUIFIN:
If the other side reimburses court and legal fees after the judgment, these go to the sponsors on top and are not deducted from your share. So you only give up part of your proceeds, and never more than was actually recovered. Without funding, you would have to advance the costs yourself and, if you lost, also pay the court fees and the other side's legal fees (Section 91 ZPO). Our overview Lawsuit costs 2026: GKG and RVG cost table lists the individual fees. Step 6 explains how the Quota is determined.
Then you pay nothing. The sponsors carry the cost risk, and there is no obligation to repay. The trustee refunds any unused part of the litigation budget to the sponsors. If the proceedings end in a settlement or a partial success, only what was actually recovered is distributed.
All scenarios in detail: Litigation funding: what happens if you lose?
For individuals and companies with a valid claim who lack the budget or the appetite for risk to go to court. What matters is the amount in dispute, the evidence and an opponent who can pay if you win.
Read more: Litigation funding eligibility · Litigation funding for individuals · Litigation funders in Germany compared · Litigation funding and class actions
What about the alternatives? Legal aid (Prozesskostenhilfe) is only available to people with a very low income; litigation funding has no income limit. Legal expenses insurance only pays if the policy was taken out before the dispute arose. The comparison Litigation funding or legal expenses insurance explains the difference.
FOR SPONSORS: Want to invest in litigation funding? As a sponsor, you co-finance reviewed cases and receive a share of the proceeds. Our article Investing in litigation funding explains how returns, risk and the process fit together.
Create your account to access the AEQUIFIN platform
Registration is required to use the AEQUIFIN platform. By submitting the registration form, the user accepts the General Terms and Conditions of the AEQUIFIN platform and confirms that they have read and agree to the Privacy Policy.
After submitting the registration form, the user receives an email with an activation link at the email address they provided. By clicking the activation link, the user confirms that the email address is correct (double opt-in procedure).
After an internal review, AEQUIFIN informs the platform participant by email that the registration was successful (registration confirmation). The registration confirmation concludes a contract for the use of the AEQUIFIN platform (platform contract).
The participant receives a personal user account and is entitled to use the AEQUIFIN platform with their user ID and self-chosen password.
When registering, the user chooses how they want to use the AEQUIFIN platform: as a litigant, as a sponsor or as a registered lawyer.
As registered platform users, litigants can submit a case enquiry on the "Submit Case Enquiry" page. If a litigant does not yet have a lawyer, they can find a suitable lawyer through the AEQUIFIN platform (see: Using the platform – 1.).
A litigant can also use the AEQUIFIN platform as a sponsor by additionally selecting the option "Register as a Sponsor" during registration.
Sponsors have access to the cases published on the AEQUIFIN platform (see: Using the platform – 3.). During a case's Q&A phase, they can put questions to the lawyer registered on the AEQUIFIN platform (see: Using the platform – 4.), take part in the AEQUIFIN Quota Balancing as sponsors and support cases financially (see: Using the platform – 5.).
Sponsorship limit
The sponsorship limit entitles the sponsor to submit a sponsorship offer.
Every registered sponsor has a personal sponsorship limit. It sets the maximum total amount of sponsorships the sponsor can make on the AEQUIFIN platform. Payment obligations from a sponsorship that have already been met no longer count towards the sponsorship limit.
The sponsorship limit is set as follows:
On registration, a sponsor receives a starting limit of €0. This limit can be increased in the user profile under "My Sponsoring Limit" or directly when submitting a sponsorship bid (PayPal only): (see also: 11. The AEQUIFIN Sponsoring Limit).
The sponsor increases their personal sponsorship limit by prepayment. There are two options:
The sponsor increases their personal sponsorship limit by providing a guarantee:
For more details on the options with bank guarantees, call us at +49 89 273727000 (see also: 11. The AEQUIFIN Sponsoring Limit).
Lawyers who meet the legal requirements to practise as a lawyer in Germany can register on the platform.
When registering, lawyers must state their membership of a law firm, a law partnership or another association of lawyers.
The registered lawyer can name areas of law in which they are interested in taking on mandates. They can receive email notifications about case enquiries that do not yet have a lawyer, and can indicate their interest in taking on a mandate via the AEQUIFIN platform (see: Using the platform – 1.a). For the cases they represent, they also prepare the information basis for the sponsors in a Case Concept (see: Using the platform – 2.).
Once the required sponsorship amount has been received, the registered lawyer pursues the objective of the case. They act independently on the basis of the Case Concept they prepared and are responsible for how the sponsorship funds are used (see: Using the platform – 6.).
Start a new case on the AEQUIFIN platform
Litigants (claimants) apply for litigation funding by submitting their case via the platform – either themselves or through their lawyer. Which cases qualify is explained in our article on litigation funding eligibility.
After registering on the AEQUIFIN platform, litigants can submit a case enquiry. To do so, they fill in the online questionnaire under "Submit Case Enquiry".
After an internal preliminary review by the AEQUIFIN platform, lawyers registered on the platform are automatically informed about the case enquiry, provided the litigant agrees. Lawyers interested in representing the case contact the litigant via the AEQUIFIN platform.
The litigant chooses which lawyer registered on the platform to instruct for the case. A mandate agreement with a lawyer registered on the AEQUIFIN platform is required before a case can be processed further on the platform.
Once registered, your attorney can also submit a case inquiry to AEQUIFIN. To do so, he or she selects the “Submit Case Inquiry” option under “My Account” and invites you, as the client, to join the case inquiry.
The information basis for sponsors, prepared by the registered lawyer
The lawyer registered on the AEQUIFIN platform prepares the information basis for the sponsors in a Case Concept. At this point, the client's information has been checked and the case strategy has been defined. The registered lawyer is responsible for the accuracy, completeness and anonymisation of the Case Concept.
Objective of the case
The Case Concept must state the objective of the case as precisely as possible:
Required sponsorship amount
The required sponsorship amount covers all costs expected for enforcing a case through all instances. These include, among others:
Making the case visible to sponsors on the platform
Once the Case Concept is complete, the registered lawyer confirms that it is complete and accurate and releases the case to AEQUIFIN for publication and for raising sponsorship funds on the AEQUIFIN platform.
If a case complies with the ethical guidelines of the AEQUIFIN platform, AEQUIFIN approves it on the platform together with its Case Concept. Any rejection is decided by the AEQUIFIN advisory board.
After approval by AEQUIFIN, the case is published on the AEQUIFIN platform and interested sponsors are automatically informed of the publication by email.
IMPORTANT: AEQUIFIN does not check the data and information for lawfulness, accuracy, completeness or in any other legal respect.
Sponsors can ask questions before the Quota Balancing begins
Before the AEQUIFIN Quota Balancing begins, sponsors can ask questions on the AEQUIFIN platform that arise from their analysis of the case information. The questions are forwarded to the registered lawyer by email.
The registered lawyer's answers to the sponsors' questions are published in the Case Concept. During the Q&A phase, the lawyer also provides further documents requested by sponsors if they consider them relevant.
The AEQUIFIN Quota Balancing begins after the Q&A phase.
Determining a fair, uniform quota for all sponsors
For cases with a financial objective, the AEQUIFIN Quota Balancing determines a uniform quota with which all sponsors share in the success of the case (liquidation proceeds) – the AEQUIFIN Quota. Where no financial objective is pursued, the litigant receives pro bono sponsorships.
Our article Investing in litigation funding explains how the share works out for sponsors.
The AEQUIFIN Quota reflects the variety of motives among platform users. It can be zero if sponsors simply want to help or to clarify a legal question. It can be very high if the litigant wants to enforce their rights despite a high risk. The AEQUIFIN Quota also applies if a legal matter is resolved through an out-of-court settlement or mediation.
With a Best Sponsorship, the sponsor offers a sponsorship amount without demanding a specific share of the success. If the AEQUIFIN Quota Balancing results in an AEQUIFIN Quota above 0%, the sponsors receive a share of a financial success equal to the AEQUIFIN Quota (see Using the platform – 5.b).
For cases without economic benefit, i.e. without an Expected Value for the litigant (see Using the platform – 2.), or for cases with an AEQUIFIN Quota of 0%, e.g. clarifying a legal question, the sponsorship has the character of a donation (see Using the platform – 9.).
With a Limit Sponsorship, sponsors set their sponsorship amount together with a demand for a minimum share of the success (Minimum Quota). To increase the likelihood of a successful AEQUIFIN Quota Balancing, during the AEQUIFIN Quota Balancing:
Sponsorships cannot be withdrawn, and the sponsorship amount cannot be changed.
Best or Limit Sponsorship – what is better?
A Best Sponsorship is easy to handle, and the sponsor receives the AEQUIFIN Quota determined in the AEQUIFIN Quota Balancing. After submitting the sponsorship, the sponsor can see whether it has qualified. It cannot be undercut afterwards. However, the AEQUIFIN Quota determined at the end of the term may be lower than expected. The less a case is to be supported for financial reasons, the more a Best Sponsorship is recommended.
A Limit Sponsorship secures a desired minimum share of the success, but can still be undercut by other sponsorships until the AEQUIFIN Quota Balancing ends, so it should be monitored. Overall, the AEQUIFIN Quota Balancing is designed so that the litigant can obtain favourable sponsorship. Limit sponsors pursue their economic interest. They therefore analyse the legal and economic opportunities and risks, which also supports the litigant. They determine the level of the AEQUIFIN Quota. The more a case is to be supported for financial reasons, the more a Limit Sponsorship is recommended.
What is the optimal Minimum Quota?
If a sponsor is pursuing their own financial interest, a high Minimum Quota is generally optimal for them. However, an AEQUIFIN Quota of zero can also be optimal for a sponsor, e.g. if their sponsorship clarifies a legal question that matters to them and that would otherwise not be decided by a court. The clearer the idea of the desired financial share of a success, the more it is recommended to enter the corresponding Minimum Quota. Settlement is based on the AEQUIFIN Quota determined for everyone in the AEQUIFIN Quota Balancing. If it is higher than the Minimum Quota, the sponsor receives a share of the success above the Minimum Quota they demanded. There is no need for tactics. A sponsorship offer can be undercut after it has been submitted. A sponsor should watch their bid and, if it is undercut, lower their Minimum Quota if appropriate. By subscribing to the case, they can be notified automatically about new bids from other sponsors. If a sponsor's Minimum Quota is above the litigant quota, their sponsorship offer will only be considered if the litigant raises their quota during the AEQUIFIN Quota Balancing or the sponsor lowers their Minimum Quota to be less than or equal to the litigant quota.
By contributing their own funds, litigants can show their commitment to their own case or close a sponsorship gap after the AEQUIFIN Quota Balancing has ended.
The litigant's own funds are shown in the Case Concept. The registered lawyer handling the case takes these own funds into account when calculating the required sponsorship amount.
If not enough qualified sponsorships have been submitted by the set end of the AEQUIFIN Quota Balancing, the litigant can cover the missing amount themselves. This requires that the litigant quota at the end of the AEQUIFIN Quota Balancing was above the highest sponsor quota. The litigant covering the missing amount has no effect on the sponsors' quota.
The AEQUIFIN Quota equals the highest Minimum Quota of all qualified sponsorships that is needed, when the AEQUIFIN Quota Balancing ends, to fully fund the required sponsorship amount (marginal quota). All qualified sponsorships receive this quota – that is, the Best Sponsorships and all sponsorships that demanded a lower Minimum Quota.
The end of AEQUIFIN Quota Balancing
The AEQUIFIN Quota Balancing does not end when the required sponsorship amount is reached, but runs for the set term. This ensures that sponsors have enough time to review a case, and that there is enough time to determine a fair quota.
Once the required sponsorship amount is reached, the bar for the required sponsorship amount in the case overview turns completely green, and the first AEQUIFIN Quota determined is shown in the case overview. The field "Litigant offers" then no longer shows a quota. (The value is still shown in the AEQUIFIN Quota Balancing table.)
The current AEQUIFIN Quota may still decrease until the AEQUIFIN Quota Balancing ends. After it ends, the final AEQUIFIN Quota is shown (see Using the platform – 5.b) and the sponsors are informed automatically by email.
Enough qualified sponsorships must have been submitted by the stated end of the AEQUIFIN Quota Balancing. Otherwise, no sponsorship contracts are concluded. Sponsorships qualify according to how favourable they are for the litigant. The sponsorships with the lowest Minimum Quota are the most favourable for the litigant. Best Sponsorships are counted with a Minimum Quota of 0 and are therefore the most favourable for the litigant.
Sponsors must be able to rely on the Expected Value stated by the litigant's registered lawyer, because sponsors base their decisions on it. A settlement could lead to a financial success below the Expected Value. However, sponsors have no say in a settlement.
The AEQUIFIN Sponsor Protection is intended to discourage an inflated Expected Value. It is also intended to compensate for the sponsors' lack of a say. The effective quota in favour of the sponsors therefore rises the higher the required sponsorship amount is and the further the success falls below the Expected Value (Effective Quota).
IMPORTANT: Before submitting a sponsorship offer, interested sponsors can have the Effective Quota calculated for possible scenarios in the sponsorship input form.
The AEQUIFIN Sponsor Protection is calculated using the following formula:
Under the AEQUIFIN Sponsor Protection, the sponsors' share can at most equal the liquidation proceeds, because the litigant should never have to pay in additional funds. In that case, the litigant's share is 0. In addition, the AEQUIFIN Sponsor Protection never puts the sponsors in a better position than if the Expected Value had been reached. The sponsors' share can therefore be at most AEQUIFIN Quota × Expected Value.
A case with an Expected Value of €8,000,000 and a required sponsorship amount of €1,000,000 is settled for €3,200,000. The AEQUIFIN Quota Balancing determined an AEQUIFIN Quota of 50%. The sponsors' share of the liquidation proceeds is calculated as follows:
Formalising the sponsorship and processing payments
Once the AEQUIFIN Quota Balancing has been completed successfully, sponsorship contracts are concluded between the litigant, the registered lawyer and the individual sponsors of the qualified sponsorships.
The sponsorship contract essentially obliges the litigant and their registered lawyer to use the sponsorship received exclusively to enforce the legal matter presented and, if the case succeeds, to pay the success share equal to the AEQUIFIN Quota.
The sponsors' obligation is essentially limited to paying the sponsorship amount.
Details such as the registered lawyer's duty to provide information or the disclosure of conflicts of interest by sponsors are set out in the General Terms and Conditions of the AEQUIFIN platform.
AEQUIFIN does not accept payments for sponsorships. Payments must be made exclusively to the stated trust account.
The sponsor receives a payment request for payment obligations arising from sponsorships from the registered lawyer or AEQUIFIN.
The Case Concept may specify a transaction period. This is a possible 20-day waiting period before the registered lawyer or AEQUIFIN sends out payment requests.
Once the sponsor has transferred the money to the trust account, the registered lawyer or AEQUIFIN confirms receipt of payment.
How the case is managed after funding is secured
Once the required sponsorship amount has been received, the litigant's registered lawyer pursues the objective of the case. They act independently on the basis of the Case Concept they prepared and are responsible for how the sponsorship funds are used.
In line with the AEQUIFIN platform requirements, the registered lawyer keeps the committed sponsors informed about relevant developments and the conclusion of the proceedings. They use a secure communication forum on the AEQUIFIN platform and, where applicable, provide documents in the secure data room they manage.
What happens if the initial sponsorship is not sufficient
If the required sponsorship amount is not sufficient, the litigant's registered lawyer must determine the need for a supplementary financing volume and initiate an AEQUIFIN Supplementary Financing.
The AEQUIFIN Supplementary Financing is a procedure that protects the sponsors' interests and is intended to prevent a case from failing for lack of supplementary financing. It takes into account that sponsors are usually less able to assess a case's prospects of success. Here, the litigant and the registered lawyer have an advantage in shaping the terms.
First, the committed sponsors of the first funding round are asked whether they will contribute to the supplementary financing volume in proportion to their existing share of the required sponsorship amount and at unchanged AEQUIFIN Quota terms.
If all committed sponsors agree to the supplementary financing within the set deadline and the promised amount has been transferred no later than 7 days after that deadline, the supplementary sponsorship is concluded on unchanged terms.
If Option A does not apply, the litigant's registered lawyer must offer an AEQUIFIN Supplementary Financing Quota Balancing on the AEQUIFIN platform.
The AEQUIFIN Supplementary Financing Quota Balancing determines an AEQUIFIN Supplementary Financing Quota, with which the supplementary sponsors share in the liquidation proceeds with priority if the case succeeds.
To rule out any blocking of supplementary financing, the litigant cannot name a litigant quota in the AEQUIFIN Supplementary Financing Quota Balancing.
The liquidation proceeds from the concluded case that remain after deducting the success share of the supplementary sponsors and the AEQUIFIN fee are split between the original sponsors and the litigant according to the AEQUIFIN Quota, following the rules of the original AEQUIFIN Quota Balancing.
How proceeds are distributed when a case concludes
If financial objectives are achieved, the liquidation proceeds are distributed proportionally between the sponsors and the litigant according to the rules of the AEQUIFIN Quota Balancing, the AEQUIFIN Sponsor Protection and the AEQUIFIN Supplementary Financing. The "liquidation proceeds" comprise:
If cost reimbursements can be obtained, they are split among the sponsors in proportion to their share of the required sponsorship amount. The litigant and AEQUIFIN do not share in cost reimbursements.
After release by the AEQUIFIN platform, the trustee pays the sponsors their share of the liquidation proceeds and the cost reimbursements, less the AEQUIFIN success fee. The trustee then pays the litigant their share of the liquidation proceeds, less the AEQUIFIN success fee.
If the litigant loses the case, the trustee refunds the unused sponsorships to the sponsors in proportion to their respective share of the required sponsorship amount. The litigant has no further obligation to repay the sponsors.
All scenarios in detail: Litigation funding: what happens if you lose?
The litigant's registered lawyer is always bound by their duties to their client, and important events can bring proceedings to an early end. Please refer to the General Terms and Conditions of the AEQUIFIN platform.
Taxes, security, and managing your sponsoring limit
The tax treatment of sponsorships on the AEQUIFIN platform may differ for each case and each sponsor. The litigant's registered lawyer can provide information on this in the Case Concept.
In certain cases, sponsorships may be tax-deductible donations if the AEQUIFIN Quota is zero. The registered lawyer can provide information on possible tax deductibility in the Case Concept.
Under certain circumstances, a loss from a sponsorship may be tax-deductible.
AEQUIFIN may not provide legal or tax advice. AEQUIFIN employees may not assess tax information provided by lawyers registered on the platform.
As a rule, sponsors should assume that a financial share in the success of a case is taxable, and they should always consult their own tax adviser on the tax treatment of a sponsorship.
Read more: Litigation funding and taxes.
AEQUIFIN two-factor authentication adds an extra layer of security to your sponsorships on the AEQUIFIN platform. It ensures that only you can submit a sponsorship, even if someone else knows your password. In addition to your login, submitting a sponsorship now requires a personalised one-time numeric code. It is sent by text message to the mobile number you have stored. AEQUIFIN covers the delivery costs for the security of your sponsorship.
If you have any further questions about AEQUIFIN two-factor authentication, please get in touch.
The AEQUIFIN Sponsoring Limit makes submitting sponsorship bids simple and transparent, both for cases with AEQUIFIN Quota Balancing and for legal projects. At its core is the safeguarding of how funds are used and the management of the sponsoring limit by your personal trustee. The trustee monitors all transactions on your sponsoring limit and ensures that capital calls and the handling of proceeds from legal cases are carried out correctly.
Under "My Area" and "My Sponsoring Limit", every sponsor has access to their personal sponsoring limit cockpit. It lists all funds deposited and a history of past account transactions.
On registration, a sponsor receives a starting limit of €0. This limit can be increased in the user profile under "My Sponsoring Limit" or directly when submitting a sponsorship bid (PayPal only).
The sponsor increases their personal sponsoring limit by prepayment. There are two options:
The sponsor increases their personal sponsoring limit by providing a guarantee:
For more details on the options with bank guarantees, call us at +49 89 273727000.
This shows the total of all limit increases made so far by prepayment.
The total of guarantees deposited so far is shown under "Guarantees Deposited".
This shows the total of all sponsorships made so far that have not yet succeeded. Once the Quota Balancing has ended and your sponsorship bid was successful, the full amount of your sponsorship is moved from Open Sponsorships to Committed Sponsorships.
If your sponsorship bid is successful and the Quota Balancing has therefore been completed, you will find the corresponding bid under Committed Sponsorships. The limit trustee continues to hold the funds until the case's lawyer makes a capital call. Only then is money paid out from the trust account.
The available sponsorship volume is the total of deposited prepayments and/or guarantees available for new sponsorships on the AEQUIFIN platform. It can be increased by raising the sponsoring limit through prepayment or by depositing a guarantee.
The key answers at a glance
An external funder covers all costs of court proceedings: lawyers, court and experts. If the claimant wins, the funder receives a previously agreed share of the proceeds. If the claimant loses, the funder bears the costs and the claimant pays nothing back.
Nothing up front, and nothing if you lose. You only pay if you win, with a share of the proceeds. On the market, litigation funders usually receive 20 to over 40 percent of the amount recovered, and in complex proceedings often at least 1.5 to 3 times their investment. At AEQUIFIN, the litigation budget also covers the other side's costs. If you win, the sponsors first receive the litigation budget they provided back from the proceeds and then the AEQUIFIN Quota determined in the Quota Balancing from the rest. The AEQUIFIN success fee is added on top.
You pay nothing. The sponsors carry the cost risk, and there is no obligation to repay. The trustee refunds any unused part of the budget to the sponsors.
Usually an amount in dispute from about €100,000, good prospects of success, a claim that can be proven and a solvent opponent. In mass claims, smaller amounts may also qualify.
As long as the proceedings. 12 to 24 months is typical; complex proceedings over several instances can take 36 months or longer. A settlement can shorten the proceedings considerably.
Yes. The case enquiry is free and without obligation. You register, submit your case and receive an initial assessment before any commitment arises.

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