Indeed toofast2live you are correct. Zopa was pretty well the only p2p platform around in 2008/09 and to its credit it came through OK.I dont know how the current larger platforms would fare if we hit something like that again. We may not. I keep away from high LTV asset backed and most second charge p2p loans for the these sort of reasons. I prefer shorter term exposure and like a secondary market. I stick with the largest p2p platforms. Even so if things get bad one could lose capital. Around the 08/09 I sold a lot of my equity holdings but still did not do too well out of it.I agree , the FSCS would be unable to cover losses just due to the volume of them.It strikes me that the rules are being made as we talk and its all very new. Nothing ventured nothing gained as with equities. I think it will be all different in the not too distant future.